The Impact of Green Finance on Carbon Emissions Within the Power Sector

This study examines the impact of green finance on reducing carbon output within the energy sector. The research finds that green finance, by utilizing green finance instruments, such as green credit and bonds, allocate funding to low-carbon sectors, promotes the transformation of the energy sector, and effectively curbs carbon output. Trends in green finance indicate that green bonds and green credit serve as key mechanisms. They have significantly propelled the low-carbon transformation and facilitated the carbon reduction efforts within Chinas energy sector. Empirical results suggest that the expansion of green finance, especially the expansion of green credit and green bonds, substantially lower carbon output in the energy sector. Overall, green finance plays a beneficial role in lowering carbon output in the energy sector by providing financial support and guiding enterprise transformation. This research holds significant value in supports the energy sectors shift towards a low-carbon future and in shaping green finance policies.