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Topicality. The lack of understanding of the relationship between the state of the environment and the degree of degradation of urban agglomerations leads to an increase in socially necessary costs for the protection, use and restoration of the natural environment and compensation costs in support and quality of the environment, gradual decrease in the quality and quantity of natural assets, the aggravation of developmental problems cities as ecosystems of human life. At the same time, the growth of the economy leads to an increase in environmental pollution. This fact is confirmed by statistical data. Therefore, choosing a sustainable path of development, it is necessary to focus on mechanisms that will contribute to transforming the structure of the economy in such a way that its further development does not endanger the environment and does not diminish the quality of life of the citizens of this country. In this sense, it is advisable to form a new innovation paradigm of the "green economy" in the direction of meeting the objectives set by the goals of sustainable development.Aim and tasks. The purpose of the paper is to identify and substantiate the prerequisites for the formation of an innovation paradigm of the "green economy", the onset of which should ensure the ecologization of urban transport in the system of its sustainable development.Research results. The reasons, which are substantiated in the article, are proposed to be solved only by a holistic, global approach. Since qualitative transformations can not do without significant financial resources, the volumes of which are constantly reduced due to the influence of external factors, which also affects the developed countries of the world, the mechanisms that will enable them to get the desired result with minimal investment resources are the foreground. The article emphasizes the creation of acceptable conditions, or at least a departure from the policy of only administrative prohibitions, global control of everything and non-obstruction of the evolutionary development of events within the line of the framework conditions.Conclusions. The article proposes a substantiated list of basic mechanisms that should be the basis for the operation and development of various urban transport systems. Emphasis is placed on the need for innovative development of transport, which is also expressed in the form of programs and strategies, which are supported by tax, subsidiary, legislative, legal and other preferences. The leading directions of this development are identified, summarized in the form of a list of priority and determinative actions.

THEORETICAL PREREQUISITE OF “GREEN” ECONOMICS INNOVATION PARADIGM FORMATION IN THE SYSTEM OF URBAN TRANSPORT SUSTAINABLE DEVELOPMENT