Financing green energy transition for sustainable environment in GCC countries: the pathway for attaining SDGs 7 and 13

Purpose This study aims to analyse the implications of green energy (GE) financing on a sustainable environment, considering the criticality of the financial sector development in GCC countries. Design/methodology/approach The study adopts the novel augmented mean group and panel-corrected standard error (PCSE) techniques for data analysis between 1990 and 2023 for GCC countries to guide policy towards attaining SDGs 7 and 13. Findings The evidence reveals that GE and financial development (FD) enhance the environment with weak impact. FD promotes GE investment in GCC, thereby enhancing SDG 7. However, interplaying FD and GE the evidence reveals that the interplay significantly promotes a sustainable environment in GCC. Research limitations/implications The study focuses on six GCC countries, each with unique targets and ambitions towards GE and a sustainable environment. A one-size-fits-all approach from a panel analysis of the study might slightly deviate from individual country-specific targets. Also, our study did not account for the geopolitical tension in the Middle East, which could impact GE policy. Despite the lacuna, the evidence is robust in offering a policy guide towards attaining environmental sustainability in GCC and emerging countries. Originality/value Attaining SDGs 7 and 13 requires adequate investment in GE, which results from the environmental friendliness and replenishability of GE sources. However, financing GE infrastructure remains a huge barrier for emerging nations like GCC. As such, understanding the critical role financial sector development can play in removing the GE barrier for a sustainable environment is crucial to guide urgent policy in emerging nations, i.e. GCC, towards environmental sustainability.