Assessing the Impact of Green Finance on Environmental Sustainability

Abstract

The research is conducted on five regions and will have a significant contribution by proving the evidence that green finance has a considerable impact on environmental sustainability. Green finance is evaluated by variables including; GDP, investment in renewable energy sources, research and development for environment friendly projects, renewable electricity output share in total electricity mix and public-private-partnership investment in renewable energy projects. The research revealed that increase in production of energy from renewable sources, increase in research and development and the evolution of public-privatepartnership investment in renewable energy causes decrease in CO2 emission. It is evidenced that green finance in renewable energy sources is necessary to achieve environmental sustainability. There is strong need to increase the green finance in renewable sources to target the vindication of global CO2 emissions. There should be cross-border trade of renewable energy in the regions/countries to mitigate CO2 emissions in the whole world. The research paper ranked regions on the basis of environmental sustainability that may help out the researchers and decision makers to entice foreign direct and private investment in such regions.