With the adoption of the United Nations Sustainable Development Goals and the Paris Climate Agreement, ADB’s involvement should not be ignored. The Global Environment Facility (GEF) and ADB have teamed up to provide climate change financing for developing countries. Included in this is climate protection finance, the financing method that offers cash to assist the region in achieving ecological responsibility. Using a systematic framework, the researchers in this study examined the rationale for building a cohort result of green management in China in the new phase of the country’s development. As part of a multiplicative framework, the long-term correlation between variables is quantified using the dynamic common correlated effect (D-CCE) and interactive fixed effect. According to the findings, renewable energy and green financing are good environmental indicators. Environmental degradation is negatively affected by green governance. Some people are concerned about how to dispose of ICT, yet on the other side, ICT can help cut carbon emissions with new clean technologies. Moreover, the findings show that urbanization and per capita income increase carbon emissions. The results suggest that Chinese officials need to support reducing carbon emissions through the development of ICT infrastructure, green financing, and renewable energy. Graphical Abstract

The problem for developed and developing economies is achieving sustainable development and cleaner production. Income, institutional regulations, institutional quality, and international trade are the primary factors of environmental externalities. This research looks at 29 provinces in China between 2000 and 2020 to determine the effect of green finance, environmental regulations, income, urbanization, and waste management on renewable energy generation. Similarly, the current study uses the CUP-FM and CUP-BC for the empirical estimation. More precisely, the study shows the positive influences of environmental taxes, green finance index, income, urbanization, and waste management in renewable energy investment. However, the different measures of green finance, such as financial depth, financial stability, and financial efficiency, also positively contribute to renewable energy investment. Therefore, it can be considered the best solution to environmental sustainability. However, imperative policy implications are given to attain the peak of renewable energy investment.

In order to lessen China’s carbon footprint, the government has turned to environmentally friendly financing. A reduction in CO2 has been reported in some Chinese provinces where green finance has been developed. Numerous regions in China from 2010 to 2020 are selected for this study. Based on a Dynamic Seemingly Uncorrelated, fully modified ordinary least squares and dynamic ordinary least squares regressions model, empirical research is performed with per capita growth in the economy, public spending, and the relationship between economic growth, human resources, and industrial arrangement as core variables to test the influence of green financing on CO2 emission in Chinese provinces. According to the findings, green financing speeds up the reduction of carbon emissions. Moreover, the outcomes present that industrial structure, economic growth per capita, and trade openness increase carbon emissions. Likewise, public expenditures and human capital are significantly contributing to emissions reduction. The findings show that sustainable green environment can only be achieved by boosting the performance of green finance and increasing the level of green finance supported by the Chinese economy. Last but not least, policymakers should promote public health and education spending to fully engage in the protection of the environmental efforts to encourage green consumption while minimizing the structural problems resulting from economic activity.

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