FINANCIAL ASPECTS OF THE IMPLEMENTATION OF THE EUROPEAN GREEN DEAL

The modern world is characterized by climate change and increasing greenhouse gas emissions. To address this issue, in 2019, the EU officially introduced the European Green Deal (EGD). The implementation of this agreement requires a collective transformation of the economy and society to reduce emissions, achieve climate neutrality and ensure sustainable development. The purpose of the article is to study the financial policy aimed at implementing the European Green Deal. The article compares the concepts of climate and carbon neutrality. The author analyzes total CO2 emissions, emissions per capita, share in the global total, and emissions by fuel type or industry type for 2011–2021. This analysis allows us to conclude that the European Green Deal has been effective. But at the same time, its further implementation requires improvement of the European financial policy and financial mechanism. The EU and its member states are the largest provider of public climate finance worldwide. The Fair Transition Mechanism has been introduced to ensure that all EU member states achieve climate neutrality in a fair manner and to support regions that will require more investment. The financial policy in the field of renewable energy emphasizes investment in clean energy. The Just Transition Scheme under InvestEU provides additional financing. Loans to the public sector combine a grant component from the EU budget and a loan component from the European Investment Bank. The private sector will play a key role in financing the green transition. The European Green Deal envisages the transformation of the modern economy into a circular economy by extending the life cycle of products, including reducing waste to a minimum.