The impact of green finance on environmental protection

Green finance, in contrast to traditional finance, has a close relationship with the environment and offers several advantages. This is why the study tries to illustrate how green financing affects environmental protection and evaluates its contribution to reducing environmental pollution. Green finance is an innovative method of funding with the goal of preserving the environment. It is crucial, widely discussed, and has caught the interest of many academics. They include programs that stimulate spending on initiatives aimed at minimizing adverse environmental effects. This study highlights the importance of green finance in environmental protection for the 36 OECD countries for the 11 years from 2010 to 2021. Panel data is used to derive results by applying models such as OLS, OLS Robust, Fixed effect, Random effects, and GMM. Empirical results according to the GMM method show that green finance has a positive impact on environmental protection, so the growth of green finance affects the reduction of carbon dioxide emissions.