REGIONAL BIOMASS COMMODITY EXCHANGE AS AN INSTITUTIONAL TOOL FOR THE DEVELOPMENT OF THE CIRCULAR BIOECONOMY IN UKRAINE
Abstract
The article substantiates the theoretical and methodological foundations, as well as practical approaches, for establishing a regional biomass commodity exchange as an institutional mechanism for developing the circular bioeconomy in Ukraine. The research emphasizes that the effective functioning of the bioeconomy requires transparent, standardized, and well-coordinated mechanisms for the circulation of biomass resources, which currently remain fragmented and predominantly oriented towards energy use. Drawing on international experience, particularly the successful practices of Baltpool (Lithuania), APXENDEX (Netherlands), and the Midwest Biomass Exchange (USA), the paper highlights the benefits of integrating trading, certification, and logistics tools into a unified digital platform. The study identifies major challenges in Ukraine, including the lack of exchange mechanisms for non-energy biomass, insufficient harmonization of sustainability and quality standards, high transaction costs, and limited logistic coordination. To address these gaps, the authors propose an organizational and legal model of a regional biomass exchange based on the principles of clustering and public-private partnerships. Such an exchange is designed to act as a logistic hub within regional agrobio-clusters, ensuring transparent contracting, lowering transaction costs, diversifying the use of biomass for biofuel, biochemicals, and bioplastics, and strengthening regional competitiveness. The model also includes a concession-based mechanism for financing and risk-sharing between the state and private investors, which provides opportunities to attract foreign capital and implement innovative technologies. In conclusion, the creation of regional biomass commodity exchanges is argued to be a key catalyst for advancing the circular bioeconomy in Ukraine, combining economic efficiency with social and ecological benefits such as job creation, investment growth, carbon footprint reduction, and sustainable regional development.
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