Climate-related development finance and renewable energy consumption in greenhouse gas emissions reduction in the Congo basin

Abstract

The global increasing trend in total greenhouse gas emissions in recent decades has triggered the need for climate-related development financing. This study analyzes the effects of climate-related development mitigation finance and renewable energy consumption on greenhouse gas emissions in the Congo Basin. Using panel data from 2002 to 2020, panel regression estimates empirically reveal (1) a minimal significant increase in greenhouse gas emissions with respect to an increase in climate-related development mitigation finance (2) An increase in climate-related mitigation finance significantly promotes the consumption of renewable energy (3) An increase in renewable energy consumption reduces greenhouse gas emissions (4) An increase in renewable energy consumption reduces the effect of climate-related mitigation finance on greenhouse emissions. This study suggest the continuous flow of climate-related development mitigation finance from donor countries and bodies to developing countries on a more regular basis and the putting in place of a mechanism that tracks climate funds to ensure that they are effectively used in generating renewable energies such as solar, hydroelectric, biomass, wind and geothermal energies.