In the modern world, we observe a significant deterioration of environment as a result of rapid population growth, which is aggravated by catastrophic consequences of human footprint, namely the inefficient use of resources and their excessive consumption. This situation requires the search for new approaches to management. Therefore, the key issue is the search for a model that will balance the development of public production and the state of the environment. The new economic model should first of all take into account environmental safety while maintaining economic growth. One of the ways of achieving such a balance can be the transition of mankind to the «green» economy (GE), which will allow to achieve a certain harmony of environmental and socio-economic aspects. The purpose of this study is to formulate the concept of GE as a condition for the future socio-economic development of society. To achieve this goal, the task was to find out the essence of the GE, to formulate the basic principles of its functioning, to identify the economic levels and characteristics of the implementation of the principles of the GE, to identify the key principles and factors that influence the transition from the «brown» to the GE, as well as the main consequences of such a transition for Ukraine. As a result of the study, the authors formulate the definition of GE, which, unlike the existing ones, treats the GE as a way of managing, which combines economic growth and environmental responsibility of economic actors of all levels. The key principles of functioning of the GE are specified. They include compliance with the basic principles of sustainable development; understanding the high value of natural and social capital; justice in relation to future generations; taking into account the impact on the environment and social impacts when using resources and production; resource efficiency, sustainable consumption and production. The authors identify four levels of management, which should implement the above principles of the GE, namely, the level of consumers, the level of enterprises, the level of the state, and the global level. For each level, the basic conditions under which these principles can be implemented are described. The authors also highlighted the internal and external factors that influence the acceleration of humanity's transition from «brown» to «green» economies. The most influential factor in the internal environment is the intensification of the fight against environmental pollution. The action of external factors is realized in the form of Ukraine's signing of international environmental agreements, the ratification of international conventions, etc. The key consequences for Ukraine in the transition to a GE, which will contribute to economic growth, are described. In particular, an increase in the resource base, the inflow of investments into the systemic sectors of the economy, energy efficiency, the reduction of the country's energy dependence, the creation of green infrastructure, increased employment and lower unemployment, stimulating innovation activities.