Green finance as a catalyst for innovation and sustainability: A perspective for a low-carbon economy

The present study examines the crucial role of green finance in promoting various types of innovations that contribute to sustainable development and mitigate climate change. This study offers a comprehensive perspective on the role of green finance in multiple types of innovations, an area that has been previously studied in a fragmented manner. It addresses the gap in the literature where the role of green finance and innovations has been examined in isolation rather than in an integrated manner. The study conducted a comprehensive review of 243 articles to synthesise existing knowledge on the relationship between green finance and innovations. The study develops insights by identifying barriers and proposing strategies to enhance the impact of green finance on businesses. The study provides strategies to overcome these barriers and offers insights for stakeholders, including businesses, financial institutions, and policymakers, on promoting green finance-led innovations to achieve a low-carbon economy. • A literature review study on the role of green finance for various innovations. • Identifies barriers and strategies to promote green finance-led innovations. • Some major innovations are: Financial Innovations, Green Innovations, Environmental Innovations, Technological Innovations, Energy Innovations, etc. • The study presents future research directions to achieve a low-carbon economy.