An Impact Study of Green Financing on CO2 Emissions in India: An Empirical Study
Abstract
This study examines the impact of green financing on CO₂ emissions in India using an empirical and econometric approach. With increasing environmental concerns and rising carbon emissions due to industrialization, energy consumption, and economic growth, green finance has emerged as a crucial tool for promoting sustainable development. The study analyzes the relationship between green bond issuance, renewable energy investment, energy consumption, GDP per capita, and carbon emissions using secondary time-series data. Statistical techniques, including multiple regression analysis through SPSS, are applied to evaluate the influence of green financial instruments on environmental outcomes. The findings reveal that green bond issuance has a statistically significant relationship with CO₂ emissions, indicating that financial instruments can influence environmental sustainability. However, renewable energy financing does not show a significant impact during the study period, possibly due to limited investment scale and delayed policy effects. Energy consumption is identified as a major determinant of emissions, while economic growth shows minimal direct influence. The study concludes that green finance has considerable potential to support emission reduction and sustainable development in India, but its effectiveness depends on increased investment, policy support, and long-term implementation. The research provides valuable insights for policymakers, financial institutions, and environmental planners in strengthening climate finance strategies and promoting a low-carbon economic transition.