ECONOMIC MECHANISMS FOR STIMULATING LOW-CARBON DEVELOPMENT IN UKRAINE

Abstract

The article is devoted to the study of the main economic mechanisms that contribute to the establishment of climate-neutral development of Ukraine. The relevance of the topic is driven by the need to transform the national economy towards the principles of low-carbon development in response to the global challenge of climate change and the gradual depletion of fossil fuel reserves. The research is based on the use of a range of general scientific and economic methods, including comparison, generalization, system-structural analysis, induction, deduction, and others. The research methodology consists of three consecutive stages: systematization of economic mechanisms of low-carbon development by scope of application; identification of key mechanisms for promoting the development of alternative energy; and characterization of energy efficiency mechanisms. Economic mechanisms for promoting low-carbon development have been structured by scope of application into measures targeting the economy, the population, and both simultaneously. These mechanisms include the introduction of a «green» tariff, subsidies and concessional loans for the development of renewable energy by households, as well as grant programs aimed at stimulating low-carbon innovations, alternative energy, and energy-saving technologies It was found that the main financial incentive mechanism is the «green» tariff. The importance of encouraging households to install equipment for electricity generation from RES has been substantiated. The study outlines the specific conditions under which individuals can obtain concessional loans for purchasing equipment, as well as access housing subsidies when installing renewable energy generation units. This research also focuses on key projects that support the development of alternative energy and energy efficiency. In particular, the grant project «Climate Innovation Vouchers», which provides partial funding for climate innovations for small and medium-sized enterprises, and the «GreenDIM» project of the Energy Efficiency Fund, which supports the development of renewable energy in the residential sector. In particular, the study outlines the grant project «Climate Innovation Vouchers», the project of the Energy Efficiency Fund «GreenDIM» and the «Enerhodim» program. The research results can be used by public authorities in optimizing economic mechanisms for promoting low-carbon development.