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The purpose of the article is to determine the role of environmental costs in making decisions on cooperation in R & D in terms of implementation of the sustainable development goals. The authors consider two approaches to determining environmental costs. Environmental costs are interpreted in regards to economic theory and environmental accounting. The model of the oligopolistic market used to determine the benefits of cooperation in the development and implementation of projects related to environmental protection. It is shown that it is beneficial for firms to cooperate in R & D in the scope of environmental protection with other firms, scientific organizations and the government both in the domestic and foreign markets. The reasons are including reducing the cost of developing and implementing projects, increasing public welfare and implementing of sustainable development goals. The obtained results indicate the need for cooperation between economic entities, the government and international organizations both in the domestic and foreign markets to solve environmental problems, achieve sustainable economic growth and social well-being.

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