The Role of Financial Instruments in Implementing the Conception of Sustainable Development

Abstract

The article proves that global economic and environmental crises can significantly undermine the country's financial stability, which emphasizes the need to develop and implement new strategies aimed at sustainable financial support in the sustainable development context. It is argued that in the modern world, rethinking the role of the financial system is becoming an integral part of countries' strategies for achieving sustainable development. It has been studied that in recent years, increased awareness of the risks and challenges associated with the need to comply with the principles of sustainable development has changed attitudes towards investing. It is found that the formation of the green investment model in Ukraine faces numerous obstacles that constitute systemic challenges for the effective implementation of sustainable investments, including: economic distortions and imbalances in the Ukrainian economy; technological backwardness and the lack of "clean" technologies for commercial implementation; structural disparities in the economy due to the underestimation of the importance of innovation and investment activity; the low level of coordination of actions of various State administration bodies in the field of State regulation; the institutional weakness of the financial sector of Ukraine. The effect of the introduction of the green bond market has been studied. Areas of prospective cooperation within the framework of the Green Deal have been determined.

Keywords

• financial instruments
• green financing
• green bonds
• sustainable development
• sustainable investments
• financial stability