Abstract
Despite market volatility in 2020 due to the COVID-19 pandemic and a decline in global investment flows to 2005 levels, sustainable development funds continued to grow. These data indicate a change in development vectors: now leading investors are guided by technologies for sustainable growth. The purpose of this paper is to determine the optimal model for evaluating investment projects in terms of their economic and environmental effects on the development of the region. The proposed technique is being tested for an investment project aimed at developing the production of mobile phones in Europe. As shown, the analysis of the location of the production of smartphones in Europe for subsequent implementation in the European market has a number of advantages and is more beneficial in terms of environmental and economic effects for the region. First, from an economic point of view, this leads to an increase in the volume of attracted investments, a decrease in operating costs for international logistics, the creation of new jobs and qualifications for the population. In addition, it is important to be able to actively implement circular business models that will reuse lithium-ion phone batteries, which will lead to a decrease in the need for cobalt as a raw material, as well as lead to an increase in the level of recycling of e-waste and the circularity of the European economy. Also, such investment projects open up great opportunities for manufacturers from a marketing point of view, creating bonuses for a positive image and preferences for a “local green producer”.
Highlights
The COVID-19 pandemic has caused global investment flows to plummet in 2020 to 2005 levels
From an economic point of view, this leads to an increase in the volume of attracted investments, a decrease in operating costs for international logistics, the creation of new jobs and qualifications for the population
In 2020, global investment fell by 35% – from $1.5 trillion to less than $ 1 trillion, much more than during the global economic crisis in 2008, when the decline was at the level of 20% (UNCTAD, 2021)
Summary
The COVID-19 pandemic has caused global investment flows to plummet in 2020 to 2005 levels. The United Nations Conference on Trade and Development estimates global investments in sustainable development projects in 2020 at $3.2 trillion, indicating an increase of more than 80 percent compared to 2019. These projects include: sustainable funds – more than $ 1.7 trillion; environmental projects – more than $1 trillion; social bonds – $ 212 billion, and mixed sustainability bonds – $218 billion. Sustainable development funds continued to grow, despite market destabilization in 2020. Their number increased to almost 4,000 by the summer of 2020, which is 1/3 more than in 2019. It should be emphasized that managed assets currently account for 3.3 per cent of total open fund assets in the world
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