Green Economy Policy: from Energy Shocks to Sustainable Development

Monetary policy is becoming a tool for ensuring economic stability in the context of global climate change and the transition to low-carbon economy. Purpose: To develop theoretical solutions for the modification of monetary strategies aimed at overcoming the risks associated with rising energy prices and promoting the implementation of environmentally oriented transformation of economic systems. Methods: A range of statistical, comparative and forecasting techniques were employed to analyse the impact of a price shock on economic growth and energy security, and to estimate the flow of investment into the green economy. Results: The research findings have indicated that the transition to renewable energy sources (RES) that was not adequately prepared for technological change was a contributing factor to the energy crisis of 2020– 2023, which resulted in rising energy prices and inflation. The analysis of anti-crisis measures has revealed contradictions between the growth of key interest rates and economic development slowdown, the green transition and inflation. The necessity for investments in the green economy and a soft monetary policy has been confirmed as a means of creating new jobs in the renewable energy sector, reducing energy costs, improving quality of life, facilitating access to sustainable energy, preserving ecosystems and adapting to climate change. The comparative analysis of the countries’ green strategies in the context of high-energy prices has shown the necessity, firstly, for a balance between economic growth and environmental sustainability, and secondly, for the integration of green finance into monetary policy and corporate finance.