This study investigates the role of green bonds in promoting renewable energy production and reducing per capita carbon emissions across countries from 2007 to 2023, while accounting for the moderating effect of climate resilience. Using a comprehensive panel data set on green finance and key macroeconomic indicators, we analyze the relationship between green finance and environmental outcomes, controlling for these indicators. Our analysis incorporates the ND-GAIN Climate Risk Index to assess how national climate preparedness influences these dynamics. Furthermore, we assumed that renewable energy production plays a mediating role in CO2 reduction. The results demonstrate that green bonds significantly contribute to lower carbon emissions and higher renewable energy generation. We confirmed that countries with greater climate resilience experience amplified positive effects from green bond investments. The study also reveals that technological innovation and foreign investment serve as important catalysts, strengthening the impact of green bonds on sustainability outcomes. These findings highlight the critical importance of integrating climate risk considerations into green finance mechanisms and suggest that policies supporting climate adaptation, research and development, and international capital flows can enhance the effectiveness of sustainable investment strategies in accelerating the global energy transition. • Green bonds significantly enhance environmental performance, contributing to both increased renewable energy production and reduced per capita CO 2 emissions across a global panel (2007–2023). • Climate resilience amplifies the effectiveness of green finance - countries with higher adaptive capacity (ND-GAIN) achieve stronger emissions reductions and renewable energy gains from green bond investments. • Technological innovation and foreign direct investment strengthen outcomes, serving as critical enablers that enhance the environmental impact of green bond financing. • Policy integration of climate risk, innovation, and capital flows is essential, as coordinated strategies significantly improve the effectiveness of sustainable finance in accelerating the global energy transition.
Alamgir et al. (Fri,) studied this question.