Green Finance and Environmental Aspects of Modern Tax Policy

Abstract

This article examines the theoretical and practical aspects of developing green finance and greening  tax policy. It demonstrates the role of the state and the financial sector in shaping a sustainable  economic model that combines economic growth with environmental protection. Key challenges in  implementing environmental taxes and ways to improve them are highlighted. The study focuses on  government fiscal regulation tools aimed at encouraging organizations to reduce their negative  environmental impact. The aim of this study is to identify opportunities for tax incentives to green  the economy and develop recommendations for the further development of relevant tax instruments.  The research was conducted using general scientific methods, such as systems and situational  analysis, generalization, synthesis, and logical and descriptive methods. Based on the results of the  study, tax measures aimed at addressing pressing environmental issues were proposed for the  financial and economic activities of organizations. Allowing free depreciation of equipment operated  using best available technologies will provide an additional incentive for their implementation and  reduce the negative impact of production processes. Reducing the VAT rate on recycled goods will  lead to increased demand, the popularity of such products, and the development of a circular  economy.