“Green” Investments in Renewable Energy in the Context of Innovative Development and Digitalization

Abstract

The present article focuses on the importance of investments in the development of green energy in developed and emerging economies. Since investment plays a crucial role in ensuring sustainable development and “green” growth, it serves as a channel for the dissemination of technologies and digital innovations, contributing to the preservation of the environment. Green investment in renewable energy is a key factor in its development. The renewable energy market is approaching the stage of maturity and has thus become attractive for a wide range of investors. The purpose of this paper is to identify the role of investments in the development of green energy in countries with different levels of economic development in the context of the digital economy. The methodology used in this study is based on the research of leading economists in the field of renewable energy and the investment market, as well as on modern energy concepts in the context of digitalization. The research methods used are systemic, economic, structural, factor, and comparative analysis, as well as methods of expert assessments. The authors discovered that investments in renewable energy sources far outweigh investments in conventional energy, even though the costs have increased recently. Participants in the renewable energy investment market were determined to be both individual and key institutional and strategic investors, as well as multinational oil companies. They also note the growing role of investment funds that use new green finance instruments such as green bonds in renewable energy. The authors identify the differences in economic factors affecting the share of renewable energy produced in the OECD and BRICS countries. The paper proves that investment in renewable energy is considered an essential tool for green energy and energy transition in the context of the global development of sustainable innovation, digitalization, the decarbonization of the economy and environmental conservation, especially against the background of events in Eastern Europe and the escalating energy crisis in 2022.