GREEN ECONOMY AS A NEW TYPE OF ECONOMIC DEVELOPMENT

ABSTRACT

Global politics have mostly focused on managing the development trend in the shift to a "green" economy. The difficulties in implementing the "green" economy in the Republic of Azerbaijan are discussed in the essay, along with the contemporary theoretical underpinnings of both the "green" economy and economic development.

A consequence of the expansion of the world economy is environmental degradation. Social development, environmental protection, economic expansion, and inclusive development for everyone are integrated in a green economy. This type of economic development is novel. One of the many challenges countries face as they green economy is a lack of financing and technology. While developing countries are aware of the need for a green transition, their economies are often built on the extraction, processing. This fact makes it difficult for these countries to meet the requirements of modern carbon emissions.

АННОТАЦИЯ

Основным направлением глобальной политики было наблюдение за тенденцией к переходу к «зеленой» экономике. В статье рассматриваются современные теоретические основы «зеленой» экономики и экономического развития, а также проблемы, с которыми сталкивается внедрение «зеленой» экономики в Азербайджанской Республике.

Глобальный экономический рост является причиной ухудшения состояния окружающей среды. Зеленая экономика сочетает в себе экономический рост, охрану окружающей среды, социальное развитие и справедливое развитие для всех. Этот вид экономического развития является новым. Одной из многих проблем, с которыми сталкиваются страны при переходе к «зеленой» экономике, является нехватка финансирования и технологий. Несмотря на осознание необходимости перехода к «зеленой» экономике, экономика развивающихся стран часто строится на добыче, переработке и экспорте сырьевых ресурсов. Из-за этой реальности этим странам сложно достичь современных стандартов выбросов углекислого газа.

Keywords: "green economy", government support, financial consequences, socio-economic consequences.

Ключевые слова: «зеленная экономика», государственная поддержка, финансовые последствия, социально-экономические последствия.

Introduction

To preserve and enhance the natural environment, the green economy is now the primary focus of social and international economic growth. For instance, cutting back on fossil fuel consumption would be a good approach to lower CO2 emissions associated with energy use and advance the green economy. Furthermore, slowing down the proliferation of fossil fuels makes room for low-carbon energy sources. This thereby restricts the increase in the use of fossil fuels and provides ample space for low-carbon sources. Simultaneously, the most economical approach to lessen energy production's environmental impact is to increase energy output.

The governments of rich and developing nations that release carbon dioxide are advised to extend national and international efforts to lower their carbon footprints and cut down on the usage of non-renewable energy sources in light of this findings. They should also encourage the usage of sustainable energy across all industries. It makes more investments in cutting-edge technology to build an energy production system that is more effective and efficient, which lowers its carbon footprint. For these nations to become more reliant on typically non-polluting non-renewable energy sources, they must have sufficient and appropriate alternatives. Taking important steps by the country to increase the use of clean energy will lead to a decrease in non-renewable energy consumption.

Furthermore, the government can support projects for microfinance related to biomass production and hydrology. The government will profit as a consequence, and sustained growth will be achievable. Thus, these nations' energy policies ought to give green development, economic expansion, and green energy top priority.

Main part

A green economy is characterized by low carbon, resource efficiency and social inclusion features. Supporting the green economy by the country leads to the development of the country's domestic and foreign economy, reduction of pollution and carbon emissions, increase of energy and resource efficiency, loss of biodiversity and ecosystem services, creation of jobs and incomes. The green economy is understood as the concept of public investment in renewable energy sources such as solar, wind, hydropower, hydrogen, electric vehicles and energy-efficient homes and the protection of the environment.

It can be said that 70-80% of the economic activity of countries in the modern era is developed due to energy, and most of the world's energy is obtained from carbon-emitting fossil fuels. It follows that the link between increased economic activity and increased carbon emissions is not surprising. But not all economic activities use the same amount of energy, and not all energy sources increase carbon emissions in the same way.

In the green economy, fiscal policy execution is influenced by the volume and character of government spending, as well as the link between the two and economic growth. This concern arises because certain aspects of government expenditure have a stronger influence on green economic activity than others. A country's economic performance can be improved by modifying the volume and content of overall government R&D investment [5].

Environmental regulation will develop as a result of technical improvements that partially, completely, and sometimes more than balance the costs of compliance in the dynamically competitive real world. Existing criteria for developing the green bonds market in Azerbaijan include switching to a sustainable economic development model through green innovative technology [4].

Azerbaijan's clean environment and "green growth" initiative is outlined in the "National Priorities" decree. Together with the nation's future economic development, environmental health, rapid vegetation regeneration and expansion, efficient use of water resources, and sustainable energy sources should be ensured. This priority's goal for the strategic term is to successfully implement two goals: creating an excellent ecological atmosphere and a "green power" space.

The National Priorities state that the natural environment should be balanced with economic progress. The purpose of a high-quality ecological environment is to safeguard and clean the country's ecological environment while also ensuring effective resource usage. Focus should be on a complete solution to long-standing environmental challenges, as well as sustainable growth in this sector. Environmental dangers associated with economic and population expansion should be mitigated in the next years. Achieving these objectives, in turn, makes the topic of the "green economy" vital in Azerbaijan. In this context, at the Climate Conference (COP 26) held in Glasgow, Scotland in 2021, the Republic of Azerbaijan took a new step to mitigate the consequences of global climate change.

The Republic of Azerbaijan intends to transform our freed areas into a "green energy" zone, and tangible actions are being done in that regard. As we all know, the phrase "green energy" zone refers to more than only areas where renewable energy is generated. The scope of this statement is broad, encompassing problems such as the promotion of ecologically friendly modes of transportation, the development of "green employment"," and the effective use of resources. As a result, extensive steps are being implemented to transform our freed areas into a "green energy" zone, and the building of villages and towns is underway based on concepts of the "smart town"," "smart village," and industries to be established in the region. Special attention is given to the donation.

In this respect, Ilham Aliyev, the Leader of the Republic of Azerbaijan stated that a 240-megawatt solar power plant will be erected in the Jabrayil and Zangilan areas, "at the expense of the BP company." See how strong the interest is. The analysis has already been completed. Jabrayil and Zangilan lead the way in relation to the quantity of days with sunlight" [1]. It is important to note that it's released regions have an approved solar and wind energy potential of 7200 and 2000 megawatts, respectively. The results of analyses show the energy output from wind and solar sources. President Ilham Aliyev stated during the Fifteenth Conference of the Economic Co-operation Conference (ECO) on November 28, 2021, in Ashgabat, the capital of Turkmenistan, that 181 can produce between nine to ten thousand megawatts [2]. Solar energy potential is particularly evident in Fuzuli, Jabrayil, Zangilan, and Gubadli, while wind energy potential is located in the hilly regions of Lachin and Kalbajar. The region's principal rivers, including Tartarchay, Bazarchay, Hekarichay, and numerous lesser rivers, have a high hydroelectric potential. Furthermore, early investigation suggests that Kalbajar has 3093 m³/day of thermal water reserves and Shusha has 412 m³/day [6]. Given the abundance of alternative energy sources in the freed areas, it is the correct option at the appropriate moment to pursue the transformation of the territory into a "green energy" zone. Undoubtedly, it is critical to enhance the role of local firms, including the participation of international investors in these projects, in addition to the monies supplied from the state budget, in order to turn the regions liberated from occupation into "green energy" zones. The participation of BP's finances in the process may provide an incentive for other foreign investors.

Energy is crucial for the restoration and development of freed territories. Implementing provisions and addressing socio-economic, humanitarian, and organizational issues are essential. A working group in the Coordinating Headquarters and Interagency Center is focusing on energy supply issues, as established in November 2020.

Conclusions

The principles of inclusive action that arise during economic development lead to inefficient and incompetent management decisions and poor service quality.

A country's willingness and ability to implement good green management practices (and the extent to which it is legally required to do so) will depend primarily on its sector or industry, as well as external factors such as extreme weather or consumer pressure for pollution. The second most common reason given by countries worldwide for not taking measures to improve energy efficiency is lack of financial resources. The transformation of raw materials into industrial products has helped the economic growth of developed countries, but this uncontrolled expansion has damaged the environment. Real growth takes into account not only short-term, but also medium- and long-term perspectives. This means that Azerbaijan should monitor not only GDP, but also sustainability indicators. Thus, the separation of price and geopolitical instability can also ensure the stability of economic growth, which is the basis of the well-being of Azerbaijan and the global community [3].

In conclusion, let us note that the liberated territories of the Republic of Azerbaijan have the potential to become a "green energy" zone, and this will greatly contribute to the formation of the "green economy" in our country. Let's take into account that all existing infrastructure in the liberated territories was destroyed by the enemy. Currently, infrastructure restoration in those areas is being carried out based on the principles of "green economy", the priority is to meet environmental norms in newly built cities and villages, industrial zones. The official declaration of the creation of a "net zero emission" zone in the territories freed from occupation is also an indication of this. In our opinion, in the coming years, our territories freed from occupation will be one of the exemplary places in the world developing with the principles of "green economy".

We conclude by noting that the Republic of Azerbaijan's freed areas have the potential to develop into "green energy" zones, which will greatly aid in the growth of our nation's "green economy." Recall that the infrastructure in the freed regions was completely devastated by the enemy. At the moment, the "green economy" is being used to the repair of these areas' infrastructure, with a focus on new cities and towns as well as industrial zones paying particular regard to environmental regulations. This is further supported by the official declaration that the areas freed from occupancy would become "net zero emissions" zones. We think that after being freed from occupation, our lands will rank among the best places in the world to develop under the “green economy”.

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