THE ROLE OF THE GREEN ECONOMY IN REDUCING CARBON EMISSIONS AND THE CHALLENGE IN IMPLEMENTING THE EUROPEAN GREEN DEAL

DURESA KILAJ
, Faculty of Business and Economica South East European University, Tetovo, North Macedonia
ORCID: 0000-0002-6331-2234
Email: dk32331@seeu.edu.m
(corresponding author)

FISNIK MORINA
, Faculty of Business Haxhi Zeka University, Peja, Kosovo
ORCID: 0000-0003-1071-0439
Email: fisnik.morina@unhz.eu

SADRI ALIJA
, Faculty of Business and Economics South East European University, Tetovo, North Macedonia
ORCID: 0000-0002-0355-731X
Email: s.aliji@seeu.edu.mk

DOI: https://doi.org/10.24818/cike2025.51

Pages: 423–432

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Abstract

This study examines the role of the green economy in reducing carbon emissions and assesses the challenges related to the implementation of the European Green Deal (EGD). The main objective of this research is to analyze how green economy policies can contribute to achieving the carbon reduction objectives in the European Union and to assess the main obstacles that limit the effectiveness of the implementation of the EGD. This research uses a methodology based on econometric analysis of secondary data, focusing on key variables that help to assess the impact of green policies on CO2 emissions. The results show that the green economy, through increased investment in renewable energy and the application of sustainable economic growth models, has a direct and positive impact on reducing carbon emissions. The transition to clean energy and the use of new technologies are two key factors in this regard, which are closely linked to the green growth policy and the objectives of the Green Deal. Despite this, the implementation of the EGD faces several challenges, including economic and political disparities between EU Member States, as well as the need for sustained financial support and stronger political commitment. In conclusion, this study shows that, although the green economy has great potential to support climate objectives, sustainable progress in implementing the Green Deal requires a more coordinated and collaborative approach between Member States and EU institutions.

 

Keywords: Green economy, carbon emissions, European Green Deal, renewable energy, climate policy

JEL Classification: Q56, Q58, Q01, Q51, O44

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