The Impact of CO2 Emissions and Ownership Structure on Green Credit in Commercial Banks: Evidence from an Emerging Market

This study examines the effects of CO2 emissions and ownership structure on green credit across 21 Vietnamese commercial banks over the period 2013–2025. SGMM results indicate that CO2 emissions affect green credit differently across emission sources. Specifically, energy-related emissions increase the green credit ratio and decrease the non-performing green loan ratio, while industrial emissions increase the latter. Overall CO2 emissions have an unstable effect on the green credit ratio but increase the non-performing green loan ratio. Board ownership promotes green credit, while foreign ownership reduces the non-performing green loan ratio. In contrast, state ownership tends to reduce the green credit ratio. The inclusion of ownership structure also alters the effects of CO2 emissions on green credit. These findings clarify the roles of CO2 emissions and ownership structure in shaping green credit in an emerging market and provide insight into green credit development and Vietnam’s commitment to net-zero emissions by 2050.