Financial incentive instruments of regional economy’ «green» transformation

Transformation and development of the economy towards greening is an important measure for different regions to address the global challenges of climate change and rising pollution levels, and a necessary pathway to achieve sustainable development. Whether it is modernization and transformation of green technologies in traditional industries or green management of the public environment, external financial support is needed to compensate for the insufficient investment of micro-economic actors. The purpose of the study is to analyze the key financial instruments that stimulate the green transformation of the regional economy, as well as an attempt to determine the directions of using these instruments to increase the effective supply of green funds and ensure their increasing role in promoting economic transformation on the path of building an ecological civilization. The methodological basis of the study was formed by analytical and comparative methods, as well as relevant works of scientists devoted to the study of the problems of stimulating environmentally-oriented transformation processes, primarily in the regional context. The results of the analysis show that, given the important supporting role of finance in the green transformation of the economy and the fact that the relevant research is still at the initial stage, the systemic mechanism of financial stimulation of the regional economy’ green transformation should be based on three elements: financial support, capital allocation and risk diversification. It is demonstrated that the development of green economy cannot be separated from the increasing innovation dynamics of "green" financial products, so it is necessary to increase efforts in the field of development and implementation of financial innovations, to provide priority financial support to key sectors of the green economy.

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