Assessing the Impact of Green Taxation Policies on Sustainable Growth

Abstract

The experience of implementing "green" taxation in the financial processes of developed countries in the European Union encourages advanced companies to actively adapt their business strategies to the requirements of environmental taxes. Modern business giants actively invest in renewable energy sources, which helps reduce their negative environmental impact. The article carefully examines how a "green" taxation system affects sustainable development during rapid globalisation from 2020 to 2024. We reviewed the environmental taxes introduced in the world's most developed regions, such as the European Union, the USA, and China. We evaluated the effectiveness of reducing greenhouse gas emissions during the study period. In particular, we describe the modernisation of the industrial sector of these countries and the introduction of carbon capture and storage technologies. The importance of legal regulation and government initiatives is also emphasised: the European Green Deal, the Green New Deal in the US and the actions of the Ministry of Environmental Ecology of China. In countries with a lower level of development, there are three barriers – lack of finance, legislative norms and limitations of technological capabilities. The article also analyses international cooperation to achieve sustainable development goals established by the Paris Climate Agreement. It highlights how the EU states adjust their tax systems to global environmental standards – in full compliance with the directives of the European Commission. The critical role of international organisations in supporting cooperation between countries to increase the efficiency of environmental taxation and the development of renewable energy is considered separately.