Features of the transition of the domestic economy to a green economy and its integration into the european energy market

Abstract

Ukraine’s transition to a green economy under the conditions of full-scale war has acquired not only environmental, but also macroeconomic, security-related, and European integration significance. Decarbonization, energy efficiency, renewable energy development, circular resource use, and industrial modernization are becoming essential prerequisites for strengthening the competitiveness of Ukrainian enterprises in the European Union market. At the same time, integration into the European energy market determines the state’s ability to ensure the resilience of the national energy system, attract long-term investment, reduce dependence on fossil fuels, and align the rules governing the energy sector with the EU acquis. In the Ukrainian context, the green transition is unfolding amid large-scale destruction of energy infrastructure, financial constraints, military risks, and the need for rapid post-war recovery, making the process more complex and strategically important. The purpose of the article is to provide scientific substantiation of the specific features of the national economy’s transition to a green development model and to identify the institutional, market, and financial prerequisites for Ukraine’s integration into the European energy market. The study also aims to determine how green transformation can contribute to economic resilience, energy security, and the modernization of production capacities in the context of European integration. The research uses a systemic approach, comparative analysis, structural and logical generalization, elements of SWOT analysis, and scenario interpretation. The information base of the study comprises Ukrainian regulatory legal acts, European Union documents, materials from the Energy Community, ENTSO-E, the International Energy Agency, and the World Bank, as well as analytical reports and expert materials on Ukraine’s green recovery, energy reform, and post-war reconstruction. It is proven that Ukraine’s green transition cannot be reduced to replacing energy technologies or to a mechanical increase in the share of renewable energy sources. It involves a deeper transformation of the investment structure, the renewal of industrial policy, the development of a transparent electricity market, support for distributed generation, improvements in energy efficiency, the expansion of energy storage systems, and the coordination of climate policy with European rules. The article substantiates that Ukraine’s integration into the EU energy market should progress from technical synchronization with the European power system to full market coupling across the day-ahead, intraday, and balancing market segments. The main feature of Ukraine’s green transition is its dual nature: on the one hand, it is a tool for post-war modernization and reduction of carbon dependence; on the other hand, it serves as an instrument of energy security and economic integration with the EU. Its practical effectiveness will depend on the state’s ability to combine climate objectives with market reforms, anti-corruption safeguards, fair distribution of transition costs, and businesses’ access to long-term financial resources. Keywords: green economy, energy security, decarbonization, energy market, European integration, renewable energy.