Sustainable development economy and the development of green economy in the European Union

Abstract Background This study aims to explain the policies implemented by the European Union in transitioning to a green economy. It examines the period from the adoption of sustainable development within the Union to the present, focusing on the EU's strategies for sustainable development and the green economy. Main text The study reveals that the European Union has long recognized environmental problems and the impacts of climate change, starting from the 1990s. In response to the global crisis in 2008, the EU embraced the opportunity to build a dynamic, low-carbon, resource-efficient, knowledge-based, and socially inclusive society. Green investments were included in the EU's rescue plan, initiating the green transformation. The study explains the concepts of sustainable development, the green economy, and green growth. It discusses how the European Union implemented its green transformation, particularly through the examination of the European Green Deal. Furthermore, it explores the developments related to climate change and the green economy within the framework of the European 2020 strategy. Conclusions The findings highlight the European Union's commitment to addressing environmental challenges and transitioning to a green economy. Future research should focus on assessing the effectiveness of implemented policies and strategies in achieving sustainable development goals. The EU allocated a substantial portion of its budget to support green investments, including green incentives during the 2008 financial crisis, and significant budgets from member states like Germany and France. The EU has set ambitious targets for reducing greenhouse gas emissions, aiming for at least a 40% reduction by 2030 compared to 1990 levels and becoming carbon-neutral by 2050. Future research should also explore the social and economic implications of the green transformation, including job creation and industry competitiveness, to provide valuable insights for policymakers and researchers. This will contribute to enhancing the EU's green policies and advancing the transition to a sustainable and environmentally conscious economy.