Assessment of renewable energy, financial growth and in accomplishing targets of China's cities carbon neutrality

Abstract

Carbon emission is not only harmful for environment but is also expensive. The goal of financial institutions is increasingly important now that pollution emissions is rising. We used a novel econometric model in this work to assess the effect of green financing, renewable energy, trade openness, industrial upgradation, and financial development on carbon neutrality using data from Chinese cities from 2000 to 2020. According to the conclusions of the econometric research, CO2 emissions is decreased by investments in green finance, renewable energy, and financial development, but CO2 emission is raised by variables like economic growth, energy consumption, trade, and foreign direct investment. Additionally, the growth of sustainable growth helps China to achieve carbon neutrality goals. While the immediate effects of green financing on carbon neutrality through influencing renewable energy are hysterical, the direct impact of funding green on carbon neutrality is longer-lasting and more critical. These finding have significant practical implications for China's efforts to create sustainable financing and renewable energy to accomplish its carbon neutrality objectives against climate change and global warming.