CONCEPT OF LOW-CARBON MODEL OF ECONOMIC DEVELOPMENT: THEORY AND TRANSITION MECHANISMS

Abstract

Background. The research proposes to incorporate provisions of the scientific approach of new climate policy into the theory of a low-carbon economy. The aim of the research is to justify the role of cities, sustainable land use, and energy efficiency in climate change mitigation. The object of the research is the role of international organizations, governments, businesses, and other stakeholders in the implementation of transition mechanisms. The subject of the research is a global vision of financing instruments that enable a technological transition to a low-carbon economy.

Methods. To achieve the objective the research was based on standard scientific methods. A normative approach was used to aggregate theoretical views presented in scientific publications available in free search and electronic databases of research institutions and international organizations that work on climate change.

Results. The research testifies that combating climate change must be a collective effort. No single country can tackle the problem independently. Thus far, the global agenda sets a goal to develop mechanisms to transition from conventional economic development models with associated expenditures to low-carbon models with respective benefits. Major international organizations are set to lead the process of defining suitable financing instruments to streamline this transition.

Conclusions. The main differences between the conventional economy and the low-carbon economy are attributable to sustainability mechanisms. The introduction of modern technologies not only reduces carbon emissions which are an anthropological driver of climate change, but also increases carbon absorption. The scientific approach of the "new climate policy" envisages the implementation of strategies and projects that will noticeably improve the quality of life. However, in addition to the economic benefits, the low-carbon economy can lead to significant losses at the global, national, and local levels. Thus, the scientific community has started exploring transition risks. Any progress in achieving decarbonization goals depends on the integrity of accounting systems, monitoring, reporting, and verification of carbon emissions. Quantitative emissions indicators will largely define carbon pricing policies and incentive instruments to spur a low-carbon economy. Unified, open-access climate database Net-Zero Data Public Utility, launched in 2022, is a digital tool that paves the way for smart climate policies under the UN Framework Convention on Climate Change.