The purpose of this study is to examine the medium-term budget planning process in Ukraine and the extent to which this approach is used within the environmental sector. It aims to assist the Ukrainian government to integrate environmental programmes more effectively into overall programming, financial planning and budgeting practices which could result into more adequate and predictable allocations to the environment sector. The study also seeks to analyse the implications of the progressive shift in aid modalities towards sectoral and general budget support. This report was prepared within the framework of the OECD Task Force for the Implementation of the Environmental Action Programme for Central and Eastern Europe, Caucasus and Central Asia. The report also builds upon work that started within the OECD Task Team on Governance and Capacity Development for Natural Resource and Environmental Management, a joint Task Team of the OECD Development Assistance and Environmental Policy Committees. In addition, the report contributes to the debate on Green Growth, demonstrating the need for more adequate and well-costed environmental budgets, in the context of medium-term expenditure frameworks, as a means of promoting structural changes as part of the transition to green economy.