THE ROLE OF SUSTAINABLE FINANCE IN THE CONTEXT OF THE EUROPEAN GREEN COURSE
THE ROLE OF SUSTAINABLE FINANCE IN THE CONTEXT OF THE EUROPEAN GREEN COURSE

Summary/Abstract: The European Green Deal can be seen as asocietal step towards a holistic, all-encompassingapproach to climate and environmental challenges. Itattempts to integrate environmental policy by bringingtogether and improving several existing policies,initiatives and funding programs that addresssustainability and climate change. This article analyzes thegoals and objectives of the European Green Deal, as wellas strategies for their implementation. The articleestablishes that the European Green Course is a long-term process that aims to build a better future for societyand its main goal is the creation of a sustainable society.This goal can only be achieved with a holistic, all-encompassing approach. The article also presents atheoretical conceptualization of sustainable finance andestablishes that the appropriate distribution ofinvestments and finances can lead to a successful andeven transition of society towards sustainability andenvironmental improvement. Properly used, sustainablefinance reduces the risk of societal negativity, which canbe caused by the unavoidably high costs. In addition,systematic increases in funding are expected to result in astable transition of society to sustainability. Although thecorrelation analysis does not show a direct relationshipbetween sustainable finance for environmental protectionand the implementation of the European Green Dealobjectives, the research results indicate a strongcorrelation between the European Green Deal objectivesand the allocation of sustainable finance to research anddevelopment and renewable energy resource usage. Thesediffering conclusions can be explained by the fact that theallocation of sustainable finance to environmentalprotection is a much broader area than the other twovariables analyzed separately. In addition, 27 EUcountries have been ranked according to the effectivenessof their implementation of EGD directives and economictransition to pro-ecological technologies as of 2021. Thepositions of Lithuania, Latvia, and Estonia have beendetermined and examined in detail.

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