Integrating green finance and energy transitions for decarbonization: Policy pathways to achieve COP-29 goals in E7 economies.

Addressing the urgent challenges of rising CO2 emissions and global warming has become a critical priority, particularly in emerging economies. Commitments made during COP-29 emphasized the need to triple climate finance and scale up investments in green energy to meet global decarbonization goals by 2050. The objective of this study is twofold: first, to investigate the impact of green energy and finance on reducing CO2 emissions. Second, this study investigated whether green finance facilitates the adoption of green energy and enhances its impact on CO2 reduction. This study analyzed data from seven emerging economies from 1996 to 2022 to fulfill the research objective. FMOLS and DOLS regression methods were used to analyze the empirical data. The research showed green energy combined with green finance performed effectively to decrease CO2 emissions. The relationship between green finance and renewable energy systems resulted in a substantial collaborative outcome. This study indicates that green finance makes renewable energy more efficient at reducing emissions through properly directed funding. The research indicates green finance acts as a vital instrument for eliminating financing barriers which advances renewable energy system implementation. The study concludes that green finance is the best strategy to achieve a carbon neutrality target.