Circular economy as an irreversible global megatrend and driver of sustainable developent of Ukraine

Yatsenko Olha
D.Sc. (Economics), Professor, Professor, International Trade and Marketing Department, Kyiv National Economic University named after Vadym Hetman, E-mail: yacenko@kneu.edu.ua, ORCID ID: https://orcid.org/0000-0003-4399-2217

Cite this article:

Yatsenko O. (2022) Circular economy as an irreversible global megatrend and driver of sustainable developent of Ukraine. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Tsyrkuliarna ekonomika yak nezvorotnii hlobalnyi mehatrend ta draiver staloho rozvytku Ukrainy; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 11-12 (300-301), pp. 131-143.

Abstract

The study is devoted to the latest global megatrend and approach, which replaces the linear model of the economy with a circular or closed-loop economy. It is argued that the circular economy is currently a driver of sustainable development of countries and an innovative platform for cooperation at the global, national, regional, meso- and micro-levels to unite all sectors and stakeholders. The study reveals the origins of the researched megatrend and indicates the decisive role of the European Union and its large-scale environmental initiative - the European Green Deal, which should make Europe the first carbon-neutral continent in the world by 2050 and ensure the achievement of a fair, climate-neutral, resource-efficient and competitive economy. A theoretical analysis of the new EU Action Plan on the Closed Cycle Economy (CEAP) was carried out; seven general directions and four of its main environmental initiatives are revealed; the key vectors and areas of action of CEAP were indicated. The world experience in circular economy issues was analyzed, and the main types of business models at different levels were determined. It is noted that, on the one hand, environmental initiatives have positive consequences in many sectors of the economy, in particular, in the EU, renewable energy sources have become the primary source of electricity in 2022, but on the other hand, there are several threats of a social, ecological and economic nature. It has been established that environmental diplomacy plays a vital role in the establishment of a circular economy as a basis for the sustainable development of countries and regions. The influence of international environmental diplomacy on the development and cooperation between countries is theoretically substantiated. Most types of economic activity have an impact on the quality and state of the environment, and environmental diplomacy, environmental protection activities of international organizations, and numerous multilateral international agreements have a positive effect on the implementation of trade relations, in particular, they may contain provisions on restrictions or bans on trade in certain types of goods or services. It has been established that the need for more adaptation of Ukraine to the new action plan regarding the closed cycle economy is due, first of all, to the ongoing unprovoked and unjustified aggressive war of Russia against Ukraine. The development and adaptation of the postmilitary national economic system to the requirements of the circular economy must be implemented gradually and in the context of national interests and Ukraine's regulatory support for the "European Green Deal" initiative regarding the formation of the EU as a carbon-neutral continent. Recommendations have been made for Ukraine.

Keywords

circular economy, closed-loop economy, sustainable development, European Green Deal, Global Alliance on Circular Economy, environmental initiatives, Circular Economy Action Plan (CEAP), ecological diplomacy, circular economy business models at country, regional and enterprise level; adaptation of Ukraine to the new EU action plan regarding the closed cycle economy.

JEL classification: L320; DOI: 10.32680/2409-9260-2022-11-12-300-301-131-143

UD classification: 339.922:[338.1-022.344:502.174

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