MANAGEMENT OF MODERNIZATION IN ENVIRONMENTALLY ORIENTED ECONOMIC SECTORS UNDER THE EUROPEAN GREEN DEAL

Abstract

Abstract. The article examines the features of managing modernization processes in environmentally oriented sectors of the economy in the context of implementing the European Green Deal. The relevance of the topic is driven by increasing pressure on natural resources, the deterioration of the environmental situation, and the need to transition to new models of economic development based on sustainability principles. A review of the scientific literature indicates active development of theoretical approaches to the circular economy, improvement of resource efficiency, and the introduction of environmental innovations. At the same time, the issue of systemic management of modernization changes particularly at the level of interaction between the state, business, and communities requires further scholarly consideration. The aim of the study is to identify effective managerial approaches for implementing green modernization, taking into account European practices and their adaptation to national conditions. The paper substantiates the need to move from a traditional economic model to a circular economy, which involves the rational use of resources and reduction of waste. The activities of small and medium-sized enterprises (SMEs) in the EU regarding the implementation of environmental practices are analyzed. It is established that the level of enterprise engagement in modernization processes depends on their economic characteristics, sectoral specifics, and the presence of relevant staff competencies. Green skills, in particular, play a crucial role in determining enterprises’ capacity for innovative development. The Ukrainian context is considered separately, focusing on the features of implementing green initiatives during the economic recovery period. Strategic directions of state policy and the role of local communities in implementing environmental projects are analyzed. Key obstacles are identified, including a shortage of qualified personnel, fragmented initiatives, and the risks of formal rather than substantive implementation of environmental practices. It is concluded that effective modernization management requires a comprehensive approach combining strategic planning, human capital development, and the use of external financial resources. The study demonstrates that green modernization serves as an important factor in Ukraine’s long-term economic development and its integration into the European space.