FINANCIAL MECHANISMS FOR STIMULATING ENERGY EFFICIENCY IN THE ECONOMY: INTERNATIONAL EXPERIENCE AND PROSPECTS FOR UKRAINE

Abstract

The article explores the international experience in implementing financial mechanisms to stimulate energy efficiency in the economy and examines the potential application of these mechanisms in Ukraine. Climate change is identified as one of the most pressing global threats, and improving energy efficiency is crucial for reducing greenhouse gas emissions and achieving the goals of the Paris Agreement. The study discusses various financial instruments, including tax credits, subsidies, green bonds, and concessional loans, which can attract private investment in energy-efficient projects. The authors emphasize the importance of adapting international experience to the Ukrainian context to enhance competitiveness and reduce energy costs. The paper highlights the role of public support, such as tax incentives and subsidies, in mitigating risks for banks and making green loans more accessible. The adoption of these financial mechanisms is crucial for Ukraine's sustainable development and economic growth. The authors argue that energy-efficient measures not only reduce emissions but also increase energy security by decreasing dependence on imported fossil fuels. They underline the competitive advantage for countries actively implementing energy-efficient practices in the global market. The study reviews successful examples from developed countries, such as green finance, financial accessibility, and FinTech innovations, which play a significant role in boosting energy efficiency. The paper also examines the effectiveness of green bonds in promoting green energy projects and significantly reducing CO2 emissions. Additionally, the research identifies the continued reliance on bank loans as a primary source of funding for energy efficiency initiatives and suggests energy performance contracts (EPCs) as an alternative to project financing. The involvement of green banks, both public and private, is noted as a factor contributing to economic growth. The article outlines the critical elements of financial mechanisms, including financial instruments, legal and regulatory frameworks, institutional support, procedures, processes, and strategies.