Environment and finance

Carbon emissions and economic growth are related processes. Financial develop-ment is given increased attention in studies on their connection due to its impact on economic recovery. In economies having highly developed financial structures the growth of lending opportunities and active stock exchanges contribute to the reduction of financial difficulties for investments and developments both in the corporate and retail areas. Stock portfolios play a part in funding including popu-lar green investments promoting the implementation of sustainable goals. State-of-the-art investments may be implemented to achieve energy saving and causing less carbon emissions. This study is to prove, however, the impact of a high level of financial development is not unambiguously positive. It cannot only drive spread-ing environment-friendly technologies but may also cause an increase in energy consumption and carbon emissions despite its improvement of efficiency.