Climate Policy Development in the Energy Market: Prerequisites, Challenges and Advantages

Abstract

Introduction. As a critical infrastructure component, energy is undergoing a transformation towards the transition to the optimization of energy management and the development of critical technologies in the context of adaptation to climate change. Such development indicates a change in positioning “green” energy as a commodity in the market, namely the transition from a resource-saving to a climate-neutral approach. Purpose. With this in mind, the article is devoted to studying the aspects of integration of the climate component into energy security, prerequisites and features of the transition to climate management in the context of strengthening global and national security, identifying components of climate policy development in the energy market. Method (methodology). To achieve the goal set and solve certain tasks, it was used an abstract-logical approach, system analysis, comparative analysis, induction, deduction, grouping, tabular representation. The combination of systematic and synergetic approaches to solve its objectives, which have leaded to formation at components of climate policy development in the energy market. Results. The energy sector is one of the industries whose activities lead to a negative impact on the climate. COVID-19 has changed the level and structure of energy consumption and has become an additional factor in the development of renewable energy, which contributes to the climate-neutral effect. The article has considered the features of energy security as a component of national security in the context of climate policy development. The priority of energy sphere transformation in the conditions of climate change is determined. The prerequisites and peculiarities of the transition to climate management in the context of strengthening global and national security are substantiated. The article has formed the components of climate policy development in the energy market. Prospects for further research are to develop of measures to introduce climate-neutral innovations in the energy sector by diversifying alternative energy sources based on a closed cycle of using energy resources, introducing of smart technologies.