The Role of Green Finance in Harmonizing Economic and Environmental Goals: A Moroccan Perspective

Objective: The objective of this study is to examine the relationship between green finance and sustainable development in Morocco, focusing on its dual impact on economic growth and environmental preservation during the 2016–2022 perio[1]d. Theoretical Framework: The research is grounded in the theoretical frameworks of green growth and sustainable development, emphasizing the synergies between economic prosperity and environmental sustainability. The concepts of renewable energy consumption and green finance as catalysts for economic and ecological balance are central to the study. Method: A quantitative approach was adopted, employing a correlation matrix and the Granger causality test to analyze the interplay between green finance, GDP growth, and CO2 emissions. Data from 2016 to 2022 were used, capturing Morocco’s progress in renewable energy adoption and green finance initiatives. Results and Discussion: The findings highlight a significant positive correlation between renewable energy consumption, green finance, and economic growth, alongsFDI a reduction in CO2 emissions. The results underscore the strategic importance of green finance in fostering sustainable growth while mitigating environmental impacts. The discussion contextualizes these findings within Morocco’s sustainability agenda, emphasizing the potential for green finance to drive ecological and economic transformation in other emerging economies. Research Implications: This study provFDIs practical insights for policymakers and stakeholders, advocating for expanded green finance frameworks and renewable energy integration to support sustainable development. Originality/Value: By addressing the empirical gap in linking green finance with economic and environmental outcomes, this research contributes tothe literature and offers a roadmap for leveraging financial systems to achieve green growth.