THE IMPACT OF THE EUROPEAN GREEN DEAL ON THE TRANSFORMATION OF EU INVESTMENT POLICY

Abstract

The article substantiates that global environmental challenges, such as climate change, air and water pollution, biodiversity loss, and natural resource degradation, have far-reaching consequences for ecosystems, economies, and human health. Based on the conducted research, it is proven that addressing these issues requires coordinated action at the international level and the implementation of effective policies. However, the general need for a clean environment often conflicts with the interests of production, business, and economic growth. Environmental awareness has become an essential component of modern public consciousness. Prerequisites have emerged for the transition to environmentally safe production due to technological advancements and a shift in the philosophy of economic development, which should be based not on natural resources, but on human creative potential. The European Union has proposed a new environmental policy strategy, the "Green Deal" (European Green Deal), aimed at reducing the negative human impact on the environment and ensuring sustainable development. The research establishes that the goal of the European Green Deal is to make Europe climate-neutral by 2050. It is clarified that the main objective is not only to develop climate policy but also to conceptualize the green modernization of the economy and economic growth to ensure human life in harmony with the planet and its resources. The Green Deal stimulates the development of innovative technologies such as renewable energy sources, electric vehicles, energy-efficient buildings, and greenhouse gas reduction technologies. Therefore, EU investment policy must be adapted to provide funding for these new technologies and support startups and companies working in this field. It is substantiated that the transition to a green economy can become a driver of economic growth and job creation. According to EU estimates, the implementation of the Green Deal could create millions of new jobs in sectors such as renewable energy production, green construction, and waste management. The realization of projects related to the European Green Deal will require an additional annual investment of approximately 260 billion euros. Various financial instruments are planned to be used, such as InvestEU, the Just Transition Mechanism, the Horizon Europe program, Next Generation EU, the Modernization Fund, the Cohesion Fund, the Connecting Europe Facility, and the Innovation Fund. It is determined that Ukraine, as an active participant in international economic relations, ratified the Paris Climate Agreement in 2016. In August 2020, the Ukrainian government notified the EU of its participation in the European Green Deal. The research establishes that the key goal of climate policy was defined as reducing greenhouse gas emissions by 65% by 2030, with a plan to achieve climate neutrality no later than 2060. This requires the introduction of new mechanisms and procedures that will determine the rules of the game in domestic and foreign markets. It is proven that attracting foreign investment is critically important for the successful implementation of the European Green Deal, as it provides additional resources, new technologies, and enhances the competitiveness of European enterprises. Investments contribute to the development of new industries, job creation, and the implementation of environmentally friendly technologies. The transformation of EU investment policy in the context of implementing the European Green Deal is necessary to achieve ambitious goals for sustainable development, economic growth, and social justice.