The article examines the specific features of ensuring the environmentally balanced development of agglomerations in the context of the twin transition. It analyzes Ukraine’s position in the 2024 Global Innovation Index, particularly in terms of sustainable environmental development and the advancement of information and communication technologies (ICT). The article emphasizes that the integration of ICT into environmental initiatives and the development of green entrepreneurship can facilitate a transition to a higher level of sustainable environmental development. This, in turn, will enhance the implementation of ICT, including digital technologies, within enterprises and promote their innovative development in line with current trends in the global innovation landscape. The study highlights the necessity for businesses to simultaneously implement both digital technologies and environmentally sustainable solutions based on ESG principles. The authors argue that Ukraine is currently forming the institutional foundations for the implementation of ESG principles in the practical activities of enterprises, particularly in large companies and those export-oriented toward the EU market. The article emphasizes that digital transformation and the active use of artificial intelligence, especially in the environmental sphere, create both opportunities and risks for the environment. The water, carbon, and energy footprints of artificial intelligence are analyzed. The growing volume of electronic waste is found to intensify the negative impact of the economy and society digitalization on natural ecosystems. The main strategic priorities and implementation pathways for digital and environmental transformation within agglomerations are outlined. The article emphasizes that agglomerations represent the areas where the conflict between economic growth and environmental security is manifested most acutely, as the high concentration of industry, transport flows, and population creates excessive anthropogenic pressure on the environment. In such conditions, the transition to a model of environmentally balanced development is no longer just a theoretical idea but becomes a strategic need for the preservation of urban ecosystems. The legislative framework for ensuring environmentally balanced development is analyzed. Greenhouse gas emissions trading is revealed to be a crucial instrument in both combating climate change and reducing industrial pollution. The study emphasizes that legislative support plays a key role in implementing sustainable development principles. It should not only regulate environmental management through the establishment of restrictions and standards but also facilitate effective legal mechanisms aimed at encouraging green investments, energy-efficient technologies, and rational land use. The authors argue that the regulatory and legal framework for environmentally balanced development in agglomerations extends beyond the administrative boundaries of individual cities and depends on the state environmental policy as a whole. A number of institutional measures are proposed to reduce industrial pollution, ensure stable financing of environmental protection activities, and stimulate the development of green entrepreneurship, including within agglomerations. 

agglomerations, environmentally balanced development, twin transition, environmental transformation, digital transformation, ESG principles