LEVELS OF CARBON INTENSITY REGULATION WITHIN THE ORGANIZATIONAL AND ECONOMIC MECHANISM OF METALLURGY DEVELOPMENT

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Authors: Yurii Zelenin
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Abstract

The article aims to substantiate the multilevel organizational and economic mechanism for carbon intensity regulation in the iron and steel industry, focusing on the strategic integration of technological benchmarks and financial incentive tools. The study employs a systematic approach to model the hierarchy of management levels (macro, meso, and micro); comparative analysis to align national "green" financing with EU standards; and stakeholder analysis to evaluate interests in the industrial decarbonization process. The author’s methodology of carbon benchmarking with indicative indicators is used as a core regulatory filter. A comprehensive organizational and economic mechanism has been developed, which synchronizes national climate goals with sectoral industrial policies. The study justifies the inclusion of a "Climate Appendix" in the Best Available Techniques (BAT) reference documents to serve as a legal basis for "green" bond issuance and preferential lending. The research identifies the strategic importance of the meso-level (industrial clusters) in reducing R&D costs for low-carbon technologies. A stakeholder interaction matrix was designed, highlighting the necessity of transitioning from administrative to socially oriented strategic planning in the mining and metallurgical complex. Originality. For the first time, a tiered model of carbon regulation is proposed, where the degree of state support is mathematically linked to the enterprise's proximity to the "motivational benchmark". The concept of "regulatory-financial integration" is introduced, transforming environmental standards from restrictive barriers into catalysts for investment attractiveness. The results provide a roadmap for state authorities to improve the "green" project taxonomy, implement accelerated depreciation for eco-efficient equipment, and develop cluster-based industrial strategies that ensure the competitiveness of Ukrainian steel under the Carbon Border Adjustment Mechanism (CBAM). References 1. Verkhovna Rada of Ukraine. (2015). Zakon Ukrainy «Pro zasady derzhavnoi rehionalnoi polityky» [Law of Ukraine "On the Principles of State Regional Policy"] (No. 156-VIII; as amended on July 9, 2022). https://zakon.rada.gov.ua/laws/show/156-19 2. Cabinet of Ministers of Ukraine. (2015). Pro zatverdzhennia Poriadku rozroblennia rehionalnykh stratehii rozvytku i planiv zakhodiv z yikh realizatsii [On Approval of the Procedure for Developing Regional Development Strategies and Action Plans for Their Implementation] (Resolution No. 931). https://zakon.rada.gov.ua/laws/show/931-2015-%D0%BF 3. Ministry of Strategic Industries of Ukraine. (2021). Pro zatverdzhennia Metodychnykh rekomendatsii shchodo rozroblennia haluzevykh stratehii rozvytku [On Approval of Methodological Recommendations for the Development of Sectoral Development Strategies] (Order No. 124). https://mspu.gov.ua/normativna-baza/ 4. IPCC. (2023). Climate Change 2023: Synthesis Report. Contribution of Working Groups I, II and III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change. Intergovernmental Panel on Climate Change. https://www.ipcc.ch/report/ar6/syr/ 5. European Commission. (2023). A Green Deal Industrial Plan for the Net-Zero Age (COM(2023) 62 final). https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52023DC0062 6. Ministry of Economy of Ukraine. (2024). Proiekt Stratehii rozvytku promyslovoho kompleksu Ukrainy na period do 2030 roku [Draft Strategy for the Development of the Industrial Complex of Ukraine for the Period up to 2030]. https://www.me.gov.ua/Documents/Detail?lang=uk-UA&id=d7e77a2d-74d1-4d1a-96e0

Fields of Study & Subjects

Business and Economic Development Economic Issues in Ukraine Sustainable Finance and Green Bonds

Publication details

Journal / source
Middle European Scientific Bulletin
Publication date
9 January 2026