№ 11/2023

Ekon Ukr. 2023 (11): 52–75https://doi.org/10.15407/economyukr.2023.11.052

ECONOMY OF FOREIGN COUNTRIES

УДК 339.926:339.972:339.982

JEL: Q01, Q53, Q56, Q57

REZNIKOVA NATALIIA¹, GROD Mykhailo²

¹Educational and Scientific Institute of International Relations Taras Shevchenko National University of Kyiv, Research ID : http://www.researcherid.com/rid/ID I-2491-2018
OrcID ID : https://orcid.org/https://orcid.org/0000-0003-2570-869X
²Educational and Scientific Institute of International Relations Taras Shevchenko National University of Kyiv, Research ID : http://www.researcherid.com/rid/ rid60344
OrcID ID : https://orcid.org/https://orcid.org/0000-0002-7539-5778

FORMATION OF INSTITUTIONAL SUPPORT FOR THE DEVELOPMENT OF CIRCULAR ECONOMY AND ITS SUSTAINABLE FINANCING IN THE EUROPEAN UNION

Institutional and financial instruments for regulating the development of the circular economy in the EU are studied. The Sustainable Development Goals are defined as the basis of the New European Consensus on Development. Based on a thorough analysis of the EU regulatory and normative framework, the lack of unified approach to the interpretation of the circular economy and its characteristic features, as well as the principles of circularity of economic activities, is established. The potential of the circular economy in acquiring the features of competitiveness by EU member states is characterized.
It is proposed to define the circular transition as a dynamic process of realizing a set of intentions to change the essence and forms of business models implementation so as to adjust the qualitative and quantitative characteristics of growth and development models, which is accompanied by the formation of alternative mechanisms for the implementation of economic relations on the principles of circularity. It is found that the development of the circular economy is facilitated by the active use of public-private partnership and green procurement, which involves the introduction of requirements for the environmental characteristics of goods, works and services, as well as new methods of assessing the cost of their life cycle. The role of the circular economy in the European Green Deal goal-setting is analyzed and investment tools for building a climate-neutral economy in the EU are identified. The transformative role of transitions in EU policy, which include adaptive management of changes in the strategizing of socio-economic development, is singled out.
The contribution of the EU Taxonomy for Sustainable Activities to the accumulation of financial resources, which are directed to support the development of the circular economy, is assessed. It is established that the EU Cohesion Policy can be used to manage the circular transition if its implementation is ensured by the early implementation of institutional, legislative and political rules and procedures that will enable the financing of transition processes in the EU. The lack of programs for financing circular transition in Ukraine should be taken into account when developing programs for the post-war reconstruction of Ukraine, which will take place on sustainable development principles.

Keywords:circular economy; sustainable development; green economy; economic development; climate neutrality; financial instruments of circular and green transition; sustainable finance; European Green Deal; EU regulatory policy

Article original in Ukrainian (pp. 52 - 75)

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The article was received by the Editorial staff on August 11 , 2023

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