PECULIARITIES OF THE INTERRELATIONSHIP BETWEEN GREEN FINANCE AND PUBLIC FINANCE IN LEADING COUNTRIES UNDER CONDITIONS OF INSTABILITY IN THE GLOBAL FINANCIAL ENVIRONMENT

Abstract

Sharp increases in energy prices at the beginning of 2026 led to instability in the global financial environment, making the accelerated development of green energy essential. However, its expansion is accompanied by the closure of environmentally harmful enterprises and rising unemployment, which should be minimized in the implementation of the so-called Green Transition currently being pursued in leading countries worldwide, for which Ukraine is not yet financially prepared. A substantial analysis of green economy development in democratic countries has been conducted in the works of numerous scholars and practitioners. Their proposals are primarily aimed at increasing financing for green projects, including through public finance mechanisms. At the same time, it should be taken into account that green projects are not always implemented properly, especially under conditions of global financial instability, as public funds are often insufficient to finance such initiatives. Therefore, attracting private investors’ resources within the framework of public-private partnerships is of particular importance. The article analyzes the impact of Russia’s war against Ukraine, as well as the military conflict involving the United States and Israel against Iran, on the significant aggravation of global financial problems, including the financing of energy needs through public funds. The authors investigate the specific features of interaction between green finance and public finance in leading countries, enabling them to more rapidly overcome the consequences of rising prices for traditional energy resources amid instability in the global financial environment. The article substantiates the necessity for Ukraine to adopt the experience of leading countries in financing renewable energy development at all levels of governance. At the same time, it is proven that under current conditions in Ukraine, and based on the experience of leading European Union countries, nuclear energy should also be developed, including through the construction of small modular nuclear reactors. The authors emphasize the need to apply various green financial instruments in Ukraine in order to accelerate the recovery of the national economy under conditions of instability in the global financial environment. The components of the financing mechanism for green projects should include such instruments as stocks, exchange-traded funds, mutual investment funds, as well as green bonds, green loans, subsidies, and grants provided by state and local authorities to support the development of the green economy in general.