How Can Green Finance and Technological Innovation Transform Sustainable Performance Across G20 Nations?

Achieving sustainable goals involves leveraging private sector investments in renewable energy sources. The global surge in demand for alternative renewable energy and green finance has spurred extensive research in these domains. Throughout the study period, the evaluation of sustainable practices is conducted through the environmental, social, and governance (ESG) pillars. This study investigates the impact of green finance, green energy, and green economic development with the moderation of technological innovation by utilizes secondary data spanning from 2011 to 2020 across G-20 countries. Using the fixed effects method, the results confirm significant relationships between sustainability, green finance, economic development, GDP, and technological innovation. Green finance, green energy, and green economy development negatively impact sustainability, while technological innovation shows a positive effect. However, the moderating role of technological innovation negatively influences sustainability when combined with green finance. The findings are robust and validated through Driscoll Kraay (D-K) standard error estimation. Policymakers should prioritize reforms in green finance policies to ensure they effectively contribute to long-term sustainability goals. Moreover, fostering a stronger integration of technological innovation with green economic development can significantly enhance the outcomes of sustainability in the G-20 countries. Encouraging investments in both green energy and innovation, along with the regulatory frameworks that promote sustainable development, will be crucial to advancing environmental sustainability while achieving economic growth.