RENEWABLE ENERGY AS A MECHANISM FOR THE TRANSITION TO GREEN TRADE IN THE EUROPEAN UNION

УДК 339.13 (4)

Abstract

This study employs a descriptive and analytical methodology to investigate the European Union's strategy for incorporating renewable energy as a pivotal catalyst for green commerce. The European Green Deal positions the EU as a global leader in the adoption of renewable energy technology for the transition to a sustainable, low-carbon economy. The report emphasizes the crucial importance of renewable energy, such as solar, wind, hydropower, and biomass — in mitigating greenhouse gas emissions and fostering economic growth via green trade. EU initiatives, like the Renewable Energy Directive (RED II) and the Carbon Border Adjustment Mechanism (CBAM), have markedly expedited the transition to sustainable energy, bolstering the EU's pledge for climate neutrality by 2050. Renewable energy technologies boost energy security and stimulate green commerce by facilitating the flow of ecologically sustainable goods and services within the EU and with global partners. Moreover, financial instruments like green bonds and sustainable investment initiatives under the Just Transformation Mechanism facilitate this transformation, guaranteeing its inclusivity and economic feasibility.

The research indicates that renewable energy is a fundamental component of the EU's green trade system, aiding adherence to international climate accords and improving competitiveness in global markets. Nonetheless, obstacles persist, including technological inequities among member states, substantial initial investment expenditures, and intricate regulatory frameworks. The report advocates for the enhancement of cross-border collaboration, the augmentation of innovation financing, and the fortification of public-private partnerships to overcome these obstacles.