




































AGORA International Journal of Economical Sciences, http://univagora.ro/jour/index.php/aijes 

ISSN 2067-3310, E-ISSN 2067-7669 

No. 1 (2023), pp. 39-47 

 

39 
 

DECARBONIZATION AS ONE OF THE WAYS TO SOLVE THE PROBLEMS OF 

GLOBALIZATION 

 

A. KOROHOD 

 

Alona Korohod 

International Economic Relations program, State University of Trade and Economics, Ukraine 

orcid.org/ 0000-0003-3566-8038, E-mail: a.korohod@knute.edu.ua  

 

Abstract. Half a century, globalization has been a driving force in the development of world 

economies. Besides positive effects, globalization has also caused negative consequences: 

accelerated climate change, degradation of natural resources, and increased emissions. That is 

why, in the last decade, the importance of climate and decarbonization policies has increasingly 

appeared on the world agenda. In addition, recent geopolitical events, including COVID-19, the 

Russian invasion of Ukraine, further emphasize the importance of green solutions for recovery and 

decarbonization of countries' economies. This article aims to highlight the importance of 

decarbonization policies and identify the possibility of solving environmental and energy problems 

caused by globalization. Through an analysis of existing literature and different countries' policies, 

the article identifies the potential of decarbonization policies to mitigate the negative impacts of 

globalization on the environment and energy sector. The findings suggest that the adoption of 

decarbonization policies can lead to a reduction in greenhouse gas emissions, improved energy 

efficiency, the development of renewable energy sources, and green jobs, ultimately contributing 

to a more sustainable and resilient global economy. 

Keywords: Globalization, decarbonisation, renewable energy, climate change, green jobs, 

energy efficiency. 

 

I. Introduction  

For the last fifty years, globalization has been a key driver of economic growth and development 

worldwide. However, the rapid expansion of economic activity has also caused significant negative 

impacts on the environment, including climate change, resource depletion, and increased greenhouse 

gas emissions. As a result, in recent years, the importance of decarbonization policies has increasingly 

come to the forefront of global discussions.  

Moreover, the recent geopolitical events, such as the COVID-19 pandemic and the Russian 

invasion of Ukraine, have highlighted the need for sustainable and resilient economies. In response, 

many countries have increased their focus on decarbonization policies, recognizing the importance 

of green solutions for recovery and the decarbonization of their economies. 

 

I.1. Globalization impact 

The adverse impacts of globalization on the environment have been widely documented by 

various studies. A study by the United Nations Environmental Programme (UNEP) estimates that 

global greenhouse gas emissions increased by over 70% between 1970 and 2004, with the majority 

of the increase being attributed to energy-related activities (Zhang, 2007). The Intergovernmental 

Panel on Climate Change (IPCC) has also identified the increasing concentration of greenhouse gases 

mailto:a.korohod@knute.edu.ua


DECARBONIZATION AS ONE OF THE WAYS TO SOLVE THE PROBLEMS OF GLOBALIZATION 

 

40 
 

in the atmosphere as a key driver of climate change, leading to a range of environmental impacts such 

as rising sea levels, more frequent natural disasters, and loss of biodiversity (IPCC, 2022). 

 

I.2. Geopolitical effect 

The COVID-19 pandemic has exposed the vulnerabilities of the global economy and highlighted 

the need for more sustainable and resilient systems. The pandemic has led to disruptions in global 

supply chains, decreased demand for certain goods and services, and significant economic losses. 

Governments and businesses have recognized the need to invest in more sustainable and resilient 

systems that can withstand future shocks. 

At the same time, the Russian invasion of Ukraine has led to a renewed emphasis on energy 

security and the need to reduce dependence on fossil fuels. Many countries in Europe rely heavily on 

Russian gas imports, and the conflict has highlighted the risks of such dependence. Governments 

have recognized the need to invest in renewable energy sources and reduce their reliance on fossil 

fuels to ensure energy security and reduce geopolitical risks. 

 

II. Methodology  

The methodology is focusing on a comparative analysis of established regulatory practices 

regarding the decarbonization of countries' economies, as well as the systematization of research and 

forecasts of scientists regarding the importance of decarbonization. 

In the context of the energy sector and the development of renewable energy sources, the 

methodology will include an analysis of policy implementation practices that aim to promote the 

growth of renewable energy technologies and reduce the reliance on fossil fuels. This analysis will 

include a review of policies such as feed-in tariffs, renewable portfolio standards, tax incentives, and 

subsidies for renewable energy technologies. Overall, the methodology of the article will involve a 

comprehensive analysis of policies and practices that aim to promote the growth of renewable energy 

technologies and reduce the impact of globalization on the environment. By focusing on the energy 

sector and the implementation of renewable energy policies, the article will provide insights into the 

ways that decarbonization can be used as a means of addressing the challenges posed by globalization. 

 

III. Results 

III.1. Scientific view 

Against this backdrop, there has been a growing recognition of the need for decarbonization 

policies as a means of mitigating the negative environmental impacts of globalization. 

Decarbonization is the process of reducing or eliminating carbon dioxide and other greenhouse gas 

emissions from energy systems and other sectors. A report by the International Energy Agency (IEA) 

highlights the importance of decarbonization in limiting global warming to well below 2 degrees 

Celsius above pre-industrial levels, as outlined in the Paris Agreement (IEA, 2021). 

There are many scientific articles that emphasize the importance of decarbonization policies.  

A large number of such articles focus on mitigating climate risks and reduce emissions through 

decarbonization (Rockström, 2017). The article “A review of the global climate change impacts, 

adaptation, and sustainable mitigation measures” (Abbass et al., 2022) is a sectorial assessment of 

climate change mitigation and adaptation approaches worldwide in the aforementioned sectors and 

the associated economic costs. The authors argue that decarbonization policies are necessary to 

mitigate the worst impacts of climate change and propose measures for mitigating negative effects in 

different sectors.  



Alona KOROHOD 

 

41 
 

William Nordhaus in his article "The importance of carbon pricing for meeting climate targets" 

(Nordhaus, 2017) argues that carbon pricing is essential for achieving the necessary emissions 

reductions to address climate change. The author discusses the economic benefits of carbon pricing 

and how it can help drive innovation and investment in clean energy technologies. 

The article “Emissions Reduction Policies and Their Effects on Economy” examines the 

relationships between emissions-reducing policies and their effect on the country’s economic growth 

(GDP) using carbon tax and CO2 emission as explanatory variables and population and R&D as 

control variables (Gurtu et al., 2022).  

Another analysed block of scientific articles focuses on the economic benefits of decarbonization 

policies, arguing that they can promote job creation and economic growth. The authors write about 

pro-environmental economic model that changes the labor market and creates a Green Jobs (Sulich 

and Sołoducho-Pelc, 2022), analyses connection between the further reduction of emissions and the 

short-term and long-term growth of employment in the energy sector (Koasidis et al., 2022 ). 

In addition, it was observed that when analyzing decarbonization policies, scientists put a lot of 

emphasis on the energy sector and related policies. Scientific results show that renewable energy in 

context of globalization have a significant impact in reducing CO2 emissions (Ulucak & Yucel, 2021). 

The scientists came to a conclusion that countries should invest in renewable energy and 

environmental innovation aligned with the growth (Sahoo et al., 2022), enhance the quality of 

governance and democracy, attract clean foreign direct investments, promote renewable energy use, 

and adopt clean economic growth strategies to decarbonize their respective economy (Hamid et al., 

2022). 

 

III.2. Policy responses 

Moreover, many countries have increased their focus on decarbonization policies. Governments 

have recognized the importance of investing in green solutions for recovery, such as renewable energy 

sources, energy efficiency, and sustainable infrastructure.  

Analyzing the policies of different countries regarding decarbonization and recovery, it is worth 

highlighting the most widespread policy solutions of the countries on the reduction of emissions and 

the negative consequences of globalization processes: 

1) Carbon pricing: A carbon price is a fee imposed on fossil fuels' carbon content to incentivize 

the transition to low-carbon alternatives. A carbon tax or cap-and-trade system reduces 

greenhouse gas emissions from industries that contribute to globalization, such as shipping, 

aviation, and manufacturing. 

2) Renewable energy incentives: Policies that encourage the development and deployment of 

renewable energy sources, such as solar, wind, and hydroelectric power, and help reduce the 

carbon footprint of globalization. This can include feed-in tariffs, tax credits, and subsidies 

for renewable energy investments. 

3) Energy efficiency standards: Regulations that require more efficient energy use in buildings, 

appliances, and vehicles and focus on reducing energy consumption and greenhouse gas 

emissions from globalization. This includes energy performance standards, fuel efficiency 

standards, and building codes. 

4) Sustainable transport policies: Policies that encourage sustainable modes of transport, such 

as public transit, biking, and walking, reduce the environmental impacts of transportation 

associated with globalization. This includes public transport infrastructure investments, 

electric vehicle incentives, and congestion pricing. 



DECARBONIZATION AS ONE OF THE WAYS TO SOLVE THE PROBLEMS OF GLOBALIZATION 

 

42 
 

5) Circular economy initiatives: A circular economy is an economic system in which waste is 

minimized, and materials are reused, repaired, or recycled. This is used to reduce 

globalization's environmental impacts by reducing resource consumption, waste generation, 

and greenhouse gas emissions. Policies encouraging circular economy practices include 

extended producer responsibility, product labeling, and waste reduction targets. 

 

III.3. Renewable energy incentives  

Renewable energy policies are measures designed to promote the development and deployment 

of renewable energy sources. Renewable energy policies can play an important role in mitigating the 

negative environmental impacts of globalization, by reducing greenhouse gas emissions from 

economic activities associated with globalization.  

Moreover the attack of the Russian Federation on Ukraine acted as a powerful catalyst for 

decarbonization processes, forcing the countries of the world community  to  rethink  their  perception  

of  the  Russian  Federation’s fossil  fuels  as  a  source  of  funding  for its  military aggression 

(Kudirko et al., 2022).  

In recent years, countries around the world have actively implemented renewable energy policies 

to promote the development and deployment of renewable energy sources, as a means of mitigating 

the negative environmental impacts of globalization and become more energy independent. These 

policies include feed-in tariffs, tax incentives, renewable energy standards, and carbon pricing, among 

others. The European Union proposed the European Green Deal a centerpiece of its recovery plan, 

investing in renewable energy, sustainable transport, and circular economy practices.  

The European Union's Green Deal is a comprehensive plan aimed at achieving climate neutrality 

by 2050, with a target of reducing greenhouse gas emissions by at least 55% by 2030 compared to 

1990 levels. The plan includes significant investments in renewable energy, sustainable transport, and 

circular economy practices, among other initiatives. The European Union's investment in renewable 

energy is particularly noteworthy, as the bloc has set a target of sourcing 32% of its energy from 

renewable sources by 2030. 

One of the key components of the European Union's Green Deal is the EU Renewable Energy 

Directive, which aims to increase the share of renewable energy in the EU's final energy consumption 

to at least 32% by 2030. The directive sets binding targets for each EU member state, taking into 

account their starting points and national circumstances. This policy has already had a significant 

impact on the decarbonization process in Europe, with renewable energy sources accounting for 

34.6% of the EU's electricity generation in 2020, up from 31.6% in 2019. This progress is expected 

to continue in the coming years, as the EU continues to invest in renewable energy infrastructure and 

technologies. 

The United States has also committed to significant investments in renewable energy and 

infrastructure as part of its Build Back Better plan. The plan includes a proposed 2 trillion USD 

investment in clean energy over the next decade, with a focus on achieving 100% clean electricity by 

2035. This investment is expected to create millions of new jobs in the renewable energy sector, while 

also reducing greenhouse gas emissions and increasing energy security. The plan also includes 

significant investments in electric vehicles, energy efficiency, and sustainable buildings. 

The United States has implemented a range of federal and state-level policies to promote 

renewable energy, including tax credits, loan guarantees, and renewable energy standards. Many 

states have also implemented net metering policies, which allow households and businesses to sell 

excess renewable energy back to the grid. 



Alona KOROHOD 

 

43 
 

Other renewable energy policies in different countries around the world: 

1. Germany: Germany is a world leader in renewable energy, with a goal to generate 65% of its 

electricity from renewable sources by 2030. The country has implemented a feed-in tariff 

system, which guarantees a fixed payment for renewable energy generated by households, 

businesses, and utilities. 

2. China: China is the world's largest producer of solar and wind energy, and has set a target to 

achieve 20% of its energy mix from non-fossil fuel sources by 2030. The country has 

implemented a range of policies to support renewable energy, including subsidies, tax 

incentives, and feed-in tariffs. 

3. Japan: Japan has set a goal to achieve a 22-24% renewable energy share by 2030, and has 

implemented a feed-in tariff system to support the development of renewable energy. The 

country has also implemented energy efficiency standards and a carbon pricing system. 

4. India: India has set a target to achieve 40% of its electricity generation from non-fossil fuel 

sources by 2030, and has implemented a range of policies to support renewable energy, 

including feed-in tariffs, tax incentives, and renewable energy certificates. 

5. Brazil: Brazil has implemented a range of policies to promote renewable energy, including 

tax incentives, feed-in tariffs, and a renewable energy auction system. The country has also 

implemented biofuels mandates, which require a certain percentage of transportation fuel to 

come from renewable sources. 

 

IV. Statistical Analysis  

The transition to renewable energy sources such as solar, wind, and hydropower has been 

identified as a critical step in achieving decarbonization goals. A study by the European Union’s Joint 

Research Centre (JRC) highlights the potential of renewable energy sources to contribute to 

decarbonization efforts, with the authors noting that renewable energy technologies have become 

increasingly competitive with fossil fuels in terms of cost (Tsiropoulos et al., 2020). 

 

Figure 1. Renewable electricity capacity growth by region/country,  

main case 2015-2020 and 2021-2026  

 
Source: International Energy Agency (International Energy Agency [IEA], 2021) 

 



DECARBONIZATION AS ONE OF THE WAYS TO SOLVE THE PROBLEMS OF GLOBALIZATION 

 

44 
 

Scientists and experts have emphasized the importance of decarbonization policies in addressing 

the challenges of climate change and environmental degradation caused by globalization. A study by 

the National Renewable Energy Laboratory (NREL) in the United States found that in all modeled 

scenarios that the health and climate benefits associated with fewer emissions exceed the power 

system costs to get to 100% clean electricity (Denholm et al., 2022). In addition, the report notes that 

such a green transition is quite real and not only in United States.  

The International Energy Agency is forecasting the growth of renewable capacity to accelerate 

in the next five years, accounting for almost 95% of the increase in global power capacity through 

2026 (International Energy Agency [IEA], 2021).  

Moreover, according to the IEA, the forecast increase in renewables is now 30% higher than the 

growth volumes anticipated before the Russian full-scale invasion into Ukraine. Global renewable 

energy capacity is set to almost double, increasing by 2,400 gigawatts to reach 5,650 gigawatts by 

2027 (International Energy Agency [IEA], 2022). 

Such predictable growth contributes not only to the reduction of pollution and emissions, but 

also to the growth of other economic indicators, in particular the number of jobs, green jobs. 

Clean energy employment is “rapidly growing” and now accounts for more than half of all 

energy sector jobs, according to a new report. 

The first World Energy Employment Report from the IEA finds that hiring in clean energy has 

pushed energy sector employment globally above pre-pandemic levels – despite the oil and gas sector 

still struggling to recover from big layoffs in the initial stages of COVID-19 (International Energy 

Agency [IEA], 2022). Russia’s invasion of Ukraine and the energy crisis that followed have seen 

countries looking to “accelerate the growth of homegrown clean energy industries,” said IEA 

Executive Director Fatih Birol. 

 

Figure 2. Energy employment in fossil fuel and clean energy sectors, 2019-2022 

 
Source: International Energy Agency (International Energy Agency [IEA], 2022) 

Thus, Russia's war against Ukraine became a catalyst for the introduction of renewable energy 

technologies. And it is worth noting, not only in the world, but also in Ukraine, even despite the 

constant shelling of the energy infrastructure. 

With the beginning of the full-scale invasion, especially during the difficult winter period, 

Ukrainians began actively install home installations in order to provide themselves with energy and 

be energy independent. In 2022, the share of investments in household solar power accounted for 

more than 60% of total investments in green genetation capacities. 



Alona KOROHOD 

 

45 
 

Figure 3. Investments in “green” generation capacity in 2021-2022 

 
Source: Energy Map 

 

V. Conclusions 

The article highlights the significance of decarbonization policies in promoting economic growth 

and job creation, while reducing the carbon footprint of economic activities. This is in line with 

previous research findings which have demonstrated that the transition to a low-carbon economy can 

lead to significant economic benefits, including job creation, increased energy security and reduced 

costs of energy production. For instance, a study by the International Energy Agency found that the 

renewable energy sector has the potential to create up to 42 million jobs by 2050 (International Energy 

Agency [IEA], 2022). This underscores the economic potential of decarbonization policies in 

promoting sustainable economic growth and reducing the risks of future shocks. 

Moreover, the article highlights the importance of sustainable and resilient systems in reducing 

the risks of future shocks and providing solutions for energy independence. This is in line with 

previous research which has emphasized the need for resilient infrastructure and systems to mitigate 

the impacts of climate change and other shocks. For instance, a study by the Global Commission on 

Adaptation (GCA) found that investing in climate adaptation measures can yield significant economic 

benefits, including $7.1 trillion in net benefits by 2030 (Verkooijen, 2019). This highlights the 

importance of adopting a holistic approach to decarbonization, which not only focuses on reducing 

emissions, but also on building resilient systems that can withstand future shocks and provide long-

term solutions for energy independence. 

In conclusion, the article provides a compelling argument for the importance of decarbonization 

policies in promoting sustainable economic growth and reducing the risks of future shocks. The 

research has demonstrated the economic potential of decarbonization policies, as well as the need for 

resilient systems to mitigate the impacts of climate change and other shocks. As such, policymakers 

should prioritize the development and implementation of ambitious decarbonization policies at the 

national and international levels, in order to promote sustainable economic growth, create new 

opportunities for job creation and reduce the risks of future shocks. 

 

REFERENCES 

1. Abbass, K., Qasim, M.Z., Song, H., Murshed, M., Mahmood, H., & Younis, I. (2022). A 

review of the global climate change impacts, adaptation, and sustainable mitigation measures. 

Environ Sci Pollut Res 29, 42539–42559. https://doi.org/10.1007/s11356-022-19718-6. 



DECARBONIZATION AS ONE OF THE WAYS TO SOLVE THE PROBLEMS OF GLOBALIZATION 

 

46 
 

2. Denholm, P., Brown, P., Cole, W., Mai, T., & Sergi, B. (2022). Examining Supply-Side 

Options to Achieve 100% Clean Electricity by 2035. Golden, CO: National Renewable 

Energy Laboratory. NREL/TP6A40-81644. https://www.nrel.gov/docs/fy22osti/81644.pdf. 

3. Energy Map (2022). Investments in "green" generation capacity. https://map.ua-

energy.org/en/search/resources/?search_query=investment+in+green. 

4. Gurtu, A., Vyas, V., & Gurtu, A. (2022). Emissions Reduction Policies and Their Effects on 

Economy. Journal of Risk and Financial Management, 15(9), 404. MDPI AG. 

https://doi.org/10.3390/jrfm15090404. 

5. Hamid, I., Alam, M.S., Kanwal, A., Jena, P.K., Murshed, M., & Alam, R. (2022). 

Decarbonization pathways: the roles of foreign direct investments, governance, democracy, 

economic growth, and renewable energy transition. Environ Sci Pollut Res 29, 49816–49831. 

https://doi.org/10.1007/s11356-022-18935-3. 

6. International Energy Agency. (2021). Net Zero by 2050. A Roadmap for the Global Energy 

Sector. https://iea.blob.core.windows.net/assets/deebef5d-0c34-4539-9d0c-

10b13d840027/NetZeroby2050-ARoadmapfortheGlobalEnergySector_CORR.pdf. 

7. International Energy Agency. (2021). Renewables 2021. Analysis and forecast to 2026. 

https://iea.blob.core.windows.net/assets/5ae32253-7409-4f9a-a91d-

1493ffb9777a/Renewables2021-Analysisandforecastto2026.pdf. 

8. International Energy Agency. (2022). Renewables 2022. Analysis and forecast to 2027. 

https://iea.blob.core.windows.net/assets/ada7af90-e280-46c4-a577-

df2e4fb44254/Renewables2022.pdf.  

9. International Energy Agency. (2022). World Energy Employment. 

https://iea.blob.core.windows.net/assets/a0432c97-14af-4fc7-b3bf-

c409fb7e4ab8/WorldEnergyEmployment.pdf. 

10. Intergovernmental Panel on Climate Change. (2022). Climate Change 2022: Impacts, 

Adaptation and Vulnerability. Contribution of Working Group II to the Sixth Assessment 

Report of the Intergovernmental Panel on Climate Change. Cambridge University Press. 

Cambridge University Press, Cambridge, UK and New York, NY, USA, 3056 pp., 

doi:10.1017/9781009325844. 

11. Koasidis, K., Nikas, A., Van de Ven, D., Xexakis, G., Forouli, A., Mittal, S. Gambhir, A., 

Koutsellis, T., & Doukas, H. (2022). Towards a green recovery in the EU: Aligning further 

emissions reductions with short- and long-term energy-sector employment gains. Energy 

Policy, Volume 171, 2022, 113301, ISSN 0301-4215. 

https://doi.org/10.1016/j.enpol.2022.113301. 

12. Kudyrko, L., Korohod, A., & Buonocore, M. N. (2022). Renewable energy of the EU 

countries in the context of risks of import dependence. Zovnishnja torgivlja: ekonomika, 

finansy, pravo. No 4. S. 17-28. Serija. Ekonomichni nauky. 

https://doi.org/10.31617/3.2022(123)02. 

13. Nordhaus, W. (2017). The importance of carbon pricing for meeting climate targets. 

https://www.nber.org/system/files/working_papers/w23392/w23392.pdf. 

14. Rockström, J., Gaffney, O., Rogelj, J., Meinshausen, M., Nakicenovic, N., & Schellnhuber, 

H.J. (2017). A roadmap for rapid decarbonization. Science, 355(6331), 1269-1271. 

https://doi.org/10.1126/science.aah3443. 

15. Sahoo, B., Behera, D.K. & Rahut. D. (2022). Decarbonization: examining the role of 

environmental innovation versus renewable energy use. Environ Sci Pollut Res 29, 48704–



Alona KOROHOD 

 

47 
 

48719. https://doi.org/10.1007/s11356-022-18686-1. 

16. Sulich, A., & Sołoducho-Pelc, L. (2022). The circular economy and the Green Jobs creation. 

Environ Sci Pollut Res 29, 14231–14247. https://doi.org/10.1007/s11356-021-16562-y. 

17. Tsiropoulos, I., Nijs, W., Tarvydas, D., & Ruiz Castello, P. (2020). Towards net-zero 

emissions in the EU energy system by 2050 – Insights from scenarios in line with the 2030 

and 2050 ambitions of the European Green Deal, EUR 29981 EN, Publications Office of the 

European Union, Luxembourg, ISBN 978-92-76-13096-3. https://doi.org/10.2760/081488, 

JRC118592. 

18. Ulucak, Z.S., & Yucel, A.G. (2021). Can renewable energy be used as an effective tool in the 

decarbonization of the Mediterranean region: fresh evidence under cross-sectional 

dependence. Environ Sci Pollut Res 28, 52082–52092. https://doi.org/10.1007/s11356-021-

14350-2.  

19. Verkooijen, P. (2019, September 10). Adapting to climate change could add $7 trillion to the 

global economy by 2030. Global Center on Adaptation. https://gca.org/adapting-to-climate-

change-could-add-7-trillion-to-the-global-economy-by-2030/.  

20. Zhang, Y. (2007). Warming of the Climate System Is Unequivocal: Highlights of the Fourth 

IPCC Assessment Report. https://www.un.org/en/chronicle/article/warming-climate-system-

unequivocal-highlights-fourth-ipcc-assessment-report.  

 

 


