THE CIRCULAR ECONOMY DEVELOPMENT AS A FACTOR OF ENSURING ECONOMIC SECURITY

Abstract

Introduction. The recovery of the Ukrainian economy should be based on sustainable development within the framework of the European Green Deal. This enables to merge perfectly into the European Community and to accelerate the Ukrainian manufacturing modernization. Reducing the resource and energy intensity of the economy is critical to strengthening the country's economic security and to reducing energy dependence. The environmental imperatives actually stepped outside the confines of environmental protection, having turned in an effective tool for economic development. At the same time, it is important to substantiate the theoretical and methodological foundations for assessing the state and monitoring the strengthening of economic security in the context of combating climate change, where the transition from a linear to a circular system of production and intensity plays a significant role, which determines the relevance of scientific research.

Accordingly, the purpose of the study is to explore the impact   of the environmental component on ensuring economic security; substantiate the main methodological approaches to assessing the circularity of the economy, which will allow to propose measures for implementing the possibilities of a circular transition to strengthen the economic security of Ukraine.

Materials and methods. Theoretical and methodological base of research consists of  general scientific methods: logical analysis (to clarify the list of environmental indicators and economic security); system-structural analysis (to streamline and systematize the principles, approaches, features of the development of the circular economy); rating method and comparative analysis to determine the level of development of the circular economy of Ukraine among other countries; statistical analysis (to identify the main trends in environmental indicators of economic security: energy intensity, waste intensity and carbon intensity, etc.); grouping and classification (when studying the impact of the circular economy on economic security); method of comparison and expert assessments (to identify promising measures to promote the transition to a circular economy).

Results and discussion. The introduction of the circular environmentally friendly production principles  is one of the tasks for enhancing economic security. It leads to such affects: the energy dependence reduction of the economy, minimization of greenhouse gas emissions, reduction of waste landfills; reducing the extraction of exhaustive minerals, creating additional jobs in the regions and optimizing the costs of environmental protection measures (water treatment, waste processing, etc.). It is important to improve the system of indicators for assessing the development of the circular economy in Ukraine by applying the relevant indicators adopted in European practice. The key factors which justify an accelerating circular transition in Ukraine are, in particular, the strengthening of integration processes; industrial sector modernization; ensuring European standards for product quality and safety and environmental friendliness; the need to strengthen economic security and the adoption of numerous international agreements to achieve the Sustainable Development Goals, the Paris Agreement, etc.

Conclusions. Transition to circular economical model in Ukraine depends on the implementation of a number of measures, the implementation of which will enhance economic security, in particular: introducing updated national waste management hierarchy in Ukraine and long-term waste management planning at the national, regional and local levels; facilitating preparations for the reuse of recyclables and energy resources; creation of cost-effective technologies for the processing of hard domestic waste with the receipt of a final product useful to society; improvement of existing logistical approaches to domestic waste management at the national and regional levels.