The Tax Incentive Instruments for the Green Economy: Global Trends and Conclusions for Ukraine
Ivanov Y. B.

Ivanov, Yuriy B. (2026) “The Tax Incentive Instruments for the Green Economy: Global Trends and Conclusions for Ukraine.” The Problems of Economy 1:13–21.
https://doi.org/10.32983/2222-0712-2026-1-13-21

Section: World economy and international relations

UDC 336.22:502.131.1:338.2(477)

Abstract:
The issues of the green economy and the green transition as a main direction for reducing environmental impact in the context of ensuring sustainable development have become particularly widespread in recent decades. Starting from the mid-2010s, certain countries began experimental implementation of some tax incentive instruments for the adoption of green technologies. Systematic and focused tax incentives for the green economy started in the USA in 2022, and in the European Union – from 2023, when the European Green Deal was developed and approved. Starting from the middle of 2025, the positions of the EU and the US on the green economy have diverged drastically: the United States is winding down tax incentives for the green economy, while the EU, on the contrary, is developing the regulatory and legal framework for green tax policy, adopting in 2025 the Clean Industrial Deal and accompanying documents that regulate the tax instruments of State support compatible with the norms and principles of State Aid. However, considering Ukraine’s European integration trajectory, the prospects of joining the European Union, and in the context of the energy crisis caused by the war in the Middle East, studying and implementing the best global and European practices for stimulating the green transition seems promising. The aim of this article is to study and summarize the best global and European practices of tax stimulation for the development of the green economy in order to improve tax policy taking into account the specifics of the postwar economic recovery period in Ukraine. The study was conducted using methods of comparative and logical analysis, the monographic method, and a system approach. The most common practices of tax incentives for the green transition in the EU were analyzed in the context of four main sectors of the green economy, types of taxes, and the goals of tax incentives. An in-depth analysis was conducted using the example of tax incentive instruments for low-carbon logistics and service infrastructure for operating electric vehicles. The study of trends in the formation of the electric vehicle market in the EU made it possible to identify four defining factors that affect the level and characteristics of tax policy in the field of the green transition. The analysis conducted allowed for the formulation of recommendations on the use in Ukraine of best practices from EU countries in the field of tax incentives for the green transition, taking into account the state of Ukraine’s economy and the prospects for its postwar recovery.

Keywords: State support, green economy, green transition, tax incentive instruments, clean industrial deal.

Tabl.: 4. Bibl.: 23.

Ivanov Yuriy B. – Doctor of Sciences (Economics), Professor, Chief research scientist, Research Centre for Industrial Problems of Development of NAS of Ukraine (2 floor 1-a Inzhenernyi Ln., Kharkіv, 61166, Ukraine)
Email: yuriy.ivanov.ua@gmail.com

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