The Instruments for Funding the Ecological Development of the EU
Fedirko O. A., Fedirko N. V., Vasiuk N. O.

Fedirko, Oleksandr A., Fedirko, Nataliia V., and Vasiuk, Nataliia O. (2023) “The Instruments for Funding the Ecological Development of the EU.” The Problems of Economy 4:248–256.
https://doi.org/10.32983/2222-0712-2023-4-248-256

Section: Economics of Natural Resources and Environment

UDC 339.7:502/504](4-6ЄС)

Abstract:
The aim of the article is to scientifically substantiate the role of modern EU financing instruments in stimulating ecological development. The research methodology is based on the content analysis of ecological development financing instruments in the EU, their comparison and scientific generalization to substantiate further priorities for the implementation of the EU strategy «European Green Deal». The authors have examined the models of management of financial resources in the EU – direct, joint and indirect management. It is found that the EU Member States and their competent authorities develop their own national programs, coordinate the selection of projects, as well as ensure the operational management of such programs and the implementation of payments. The article shows that the most used financial instrument used within the framework of the EU programs and funds for the provision of financial resources are grants. It is determined that recently in some areas of the EU policies (first of all, in regional, entrepreneurial, and innovation) such instruments as budget guarantees and bank financing instruments (loans, credit guarantees, equity investments) have been actively developing, aimed mainly at profitable and economically viable projects. In the current planned financial period from 2021 to 2027, most EU financial programs and funds have an ecological component. At the same time, a number of the EU programs are created specifically for the purposes of sustainable development, greening of production, prevention and adaptation to climate change, as well as environmental protection, including the LIFE program, the Innovation Fund, the Just Transition Fund and the Modernization Fund. The authors show that the instruments for financing ecological development in the EU cover a wide range of potential beneficiaries, which include not only government agencies and the business sector, but also research institutions and public organizations.

Keywords: ecological policy, financial instruments, European Union, European Green Deal, EU structural funds, EU programs, grant funding.

Tabl.: 2. Bibl.: 14.

Fedirko Oleksandr A. – Doctor of Sciences (Economics), Associate Professor, Head of the Department, Department of European Economics and Business, Kyiv National Economic University named after Vadym Hetman (54/1 Beresteiskyi Ave., Kyiv, 03057, Ukraine)
Email: fedirko.oleksandr@kneu.edu.ua
Fedirko Nataliia V. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of National Economy and Public Administration, Kyiv National Economic University named after Vadym Hetman (54/1 Beresteiskyi Ave., Kyiv, 03057, Ukraine)
Email: nataliia.fedirko@kneu.edu.ua
Vasiuk Nataliia O. – Candidate of Sciences (Public Administration), Associate Professor, Associate Professor, Department of National Economics and Public Administration, Kyiv National Economic University named after Vadym Hetman (54/1 Beresteiskyi Ave., Kyiv, 03057, Ukraine)
Email: vasiuk.nataliia@kneu.edu.ua

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