Financial Instruments of Sustainable Development in the Context of Modeling the Agricultural Sector of the Ukrainian Economy

Abstract

The article examines the main financial instruments in the context of applying the principles of sustainable development. To investigate this topic, studies by scholars dealing with these issues were analyzed, and the main financial instruments and mechanisms were identified. It is determined that achieving sustainable development involves a balanced approach to economic, social, and environmental development, as well as responsibly considering the needs of future generations. Financial instruments for sustainable development have been formulated, such as green investments, green bonds, and impact investing, which contribute to financing environmentally and socially oriented projects. The importance of an effective regulatory framework, transparency, and openness in financial operations is emphasized for the successful use of these instruments. The article also discusses the concept of a "green" economy and its implementation in various countries, including Denmark, Sweden, Japan, New Zealand, and Mexico. It is noted that a "green" economy aims to improve human well-being and social equality by reducing negative impacts on the environment and the depletion of natural resources. Conclusions are drawn regarding the potential for the development of a "green" economy, including the presence of black soil, the potential for wind energy utilization, and opportunities in agriculture. Attention is focused on the article "Trends and Prospects of Green Economy Development in Ukraine," regarding the Association Agreement with the European Union, which has contributed to the activation of reform processes and the development of the "green" economy in Ukraine. It is proven that the role of sustainable investment in global capital markets has increased, indicating growing interest in the development of sustainable activities and "green" projects. The article proposes key approaches for government support, including environmental protection financing measures and modeling the future development of agriculture under the influence of various factors using the AGMEMOD partial equilibrium market model. Overall, the conducted research on green investments, sustainable financing development, and the provided proposals play an important role in the economy of Ukraine and the further well-being of our country's population.