PRINCIPLES AND MAIN INSTRUMENTS OF FINANCIAL ENVIRONMENTAL POLICY

Abstract

Every day, the world is faced with a significant number of financial and environmental challenges that threaten the concept of sustainable development. Nature is being degraded at an unprecedented rate, and current financing models continue to contribute to its destruction. The global financial system needs to innovate quickly and radically to successfully integrate the risks and opportunities associated with nature. Therefore, the issue of forming an effective financial policy for environmental management is now an urgent one. The purpose of the article is to analyse the features and instruments of the financial policy of environmental management. In the process of writing, the article uses the methods of analysis, synthesis, generalisation, specification, and the graphical method. It is determined that the financial policy of environmental management is determined by a set of measures and instruments aimed at ensuring efficient and responsible use of natural resources, environmental protection and sustainable development. The principles of the financial policy of environmental management (environmental effi-ciency, "polluter pays", financial sustainability and balance, proportionality and fairness, priority of environmental sustainability and sustainable development, transparency and public participation, co-herence) are highlighted. It is determined that the main instruments of the financial policy of environ-mental management include: taxation, emission payments, introduction of an emission allowance market, investment, subsidies and grants, etc. The purpose of financial policy is to ensure economic development that is balanced with consideration of environmental aspects. It has been established that investments focused on restoring nature and reversing biodiversity loss have a number of benefits, in-cluding environmental services (improved pollination; reduction of climate-related risks; protection of aesthetic and inherent values of nature). Domestic and international public and charitable funding remains an important factor in nature conservation, but these sources are not enough to fill the funding gap; in the future, private investment will play a key role. The features of green investments are analysed.