«Green» taxation of enterprises as a key financial instrument of eco-innovation in Ukraine

The article examines the role of «green» taxation as an effective instrument of the state environmental policy used to achieve a number of goals, including reducing emissions of harmful substances, supporting eco-innovation, and generating additional budget revenues that can be used to finance environmental protection measures. The article considers green taxation in both broad and narrow terms: narrow green taxes are focused on payments for certain types of pollution, while broad ones are aimed at stimulating environmental and economic transformations. Based on a review of the experience of the European Union and the Ukrainian peculiarities of the green tax system, the article analyses the theoretical and practical aspects of environmental taxes, their classification and role in the implementation of environmental innovations. It is established that in the EU countries environmental taxes play a more significant role in the system of sustainable development due to a clear focus on supporting environmental innovations. The dynamics of revenues from environmental taxes and its share in the Consolidated Budget of Ukraine for 2019-2023 are analysed, which demonstrate a decrease in the share of environmental tax in budget revenues. The author assesses the dynamics and structure of environmental expenditures in the Consolidated Budget of Ukraine for 2019-2023. The author identifies the problems that hinder the effectiveness of environmental taxation in Ukraine, including the lack of incentive mechanisms, insufficient control over compliance with environmental standards, and limited funding for environmental protection measures. Ukraine’s position in the Global Innovation Index in 2020-2024 is studied. The key indicators that affect Ukraine's ranking are considered, including the institutional environment, the level of infrastructure development, education, research and development, and access to financial resources. Recommendations for the introduction of an effective green taxation system that takes into account European standards and the need to adapt national legislation to EU requirements in the context of European integration are proposed. The author substantiates the need to improve the Ukrainian system of environmental taxation, in particular by expanding the tax base, increasing the rates for polluters and introducing a system of incentives for enterprises using «green» technologies.