THE IMPACT OF THE GREEN TRANSFORMATION ON THE COMPETITIVENESS OF INDUSTRIAL ENTERPRISES

In the context of the European Union’s increasingly ambitious climate policy, green transformation is becoming not only a strategic priority but also a vital condition for maintaining the competitiveness of industrial enterprises. The tightening of environmental regulations – through the implementation of the Carbon Border Adjustment Mechanism (CBAM), mandatory ESG reporting, the Science-Based Targets initiative (SBTi), and Green Public Procurement (GPP) policies –fundamentally reshapes the operational environment for businesses. This necessitates a comprehensive analysis of the interconnection between environmental transformation and economic performance as a prerequisite for adapting to the new regulatory and market landscape. The aim of this study is to identify the conditions under which decarbonization and environmental modernization of production facilities can enhance the competitive positions of enterprises rather than undermine their economic resilience. The methodological framework is based on a combination of structural-logical analysis, comparative method, a review of empirical data from Eurostat, and graphical modeling techniques. Analytical charts were constructed to illustrate energy consumption by industrial sectors and the share of renewables in energy consumption, alongside a SWOT analysis of the green industrial transformation. Within the study, a step-by-step analysis of the impact of decarbonization policies on the industrial economy was conducted. A comparative assessment of sustainable procurement policy instruments across EU countries was made, along with a describing financial support mechanisms (including subsidies, contracts for difference, and public investments). In the final stage, an analytical framework outlining the key conditions for enhancing competitiveness was developed, that made it possible to identify both risks and growth opportunities amid emerging regulatory demands and market shifts. The conclusions emphasize the importance of balancing environmental objectives with the economic interests of industrial producers, particularly considering the vulnerabilities of transition economies such as Ukraine.