TY - JOUR
AU - Karim, Salma
AB - Introduction The Sustainable Development Goals [SDGs] and the Paris Agreement are essential frameworks that address the urgent need to combat climate change and achieve carbon neutrality. The Sustainable Development Goals [SDGs], endorsed by the United Nations in 2015, offer a comprehensive roadmap for achieving sustainable development across various sectors, including energy, industry, and infrastructure. These objectives highlight the importance of transitioning to clean and renewable energy sources, reducing greenhouse gas emissions, and promoting sustainable behaviors [1–3]. The Paris Agreement, which was ratified in 2015, aims to limit the increase in global temperatures to a maximum of 2 degrees Celsius above pre-industrial levels. Additionally, it calls for additional measures to be taken to restrict the rise to 1.5 degrees Celsius. The agreement establishes a commitment by nations to consistently disclose their greenhouse gas emissions and implement measures to mitigate the effects of climate change. Achieving carbon neutrality is a fundamental objective shared by the SDGs and the Paris Agreement. It involves balancing the amount of greenhouse gases emitted with their removal from the atmosphere. A well-rounded approach is essential, encompassing investments in renewable energy, technological advancements, and the adoption of sustainable practices across all sectors [4, 5]. By aligning the Sustainable Development Goals [SDGs] with the Paris Agreement, we can foster a global transition towards a low-carbon economy, mitigate the impacts of climate change, and ensure a sustainable future for generations to come [6–8]. In the global effort to combat climate change, carbon neutrality, the condition in which an organization or country balances the release of carbon emissions with their removal or reduction, has emerged as an imperative objective. The attainment of carbon neutrality can generate many substantial effects spanning multiple dimensions Xue, Ma [9]. These effects transcend national boundaries and affect the environment, economy, society, and government, making a significant contribution towards a more equitable and sustainable global community. Reducing greenhouse gas emissions constitutes the environmental impact of carbon neutrality, which is both the most immediate and profound. Nations can substantially reduce their carbon footprint by shifting away from fossil fuels and adopting renewable energy solutions Bölük and Mert [10]. Consequently, this alleviates the detrimental consequences of climate change, such as increased sea levels, extreme weather occurrences, and elevated temperatures. Additionally, enhanced air and water quality result from decreased carbon emissions Li, Li [11] which is advantageous for ecosystems and human health. Investments in clean and sustainable technologies are propelled by carbon neutrality. The redistribution of funds towards environmentally sustainable initiatives is significantly influenced by green finance [12]. Employment opportunities are generated in sectors including renewable energy, energy efficiency, and sustainable transportation, in addition to fostering innovation Paramati, Mo [13]. Additionally, the advancement of green technology may result in financial benefits due to the increased efficiency and cost-effectiveness of clean technologies. Enhanced economic resilience, decreased energy expenses, and improved energy security are among the economic benefits Su, Liu [14]. Carbon neutrality initiatives encourage communities and individuals to adopt environmentally conscious behaviors. They advocate for sustainable living practices and cultivate a sense of accountability towards the welfare of the planet. Public health is improved by mitigating affiliated ailments and air pollution caused by investments in green technology and energy initiatives. Moreover, the allocation of resources towards pollution control and environmental protection can be facilitated by green finance, thereby yielding enduring advantages for local communities Wang and Wang [15]. The endeavor to achieve carbon neutrality carries significant political consequences on a global scale. To achieve carbon neutrality, nations frequently enact policies and regulations that restrict emissions and promote environmentally sustainable investments. Carbon neutrality commitments are of the utmost importance for global climate agreements such as the Paris Agreement on an international level. These agreements foster international cooperation and coordination in pursuit of shared climate objectives. The endorsement of carbon neutrality as a global benchmark signifies a shared dedication to addressing climate change in a concerted effort Bölük and Mert [10]. Carbon neutrality has an influence that extends beyond national boundaries and is felt globally. The deceleration of climate change is facilitated by reducing carbon emissions, which is supported by technological innovation, green finance, and renewable energy; consequently, this confers advantages upon susceptible areas that experience a disproportionate impact of climate-induced catastrophes. In addition to fostering international cooperation and diplomacy, carbon neutrality encourages countries to collaborate in order to mitigate the adverse effects of global warming. Ultimately, the effort to achieve carbon neutrality is a worldwide undertaking that carries significant consequences. It fosters political collaboration, environmental conservation, economic development, and social welfare. The pursuit of carbon neutrality by nations and societies contributes to establishing a more equitable and sustainable global community, thereby aiding in the mitigation of the most severe repercussions of climate change. Frequently imposed on activities that contribute to pollution or carbon emissions, these levies generate funds that can be allocated towards energy efficiency initiatives, renewable energy projects, and other sustainability-oriented endeavors Dong, Zhu [16]. However, there are bidirectional effects of urbanization on carbon neutrality. Although urban regions may facilitate the adoption of sustainable solutions and foster technological advancements, they also contribute to increased carbon emissions and energy consumption. The objective of carbon emission reduction may be jeopardized by the increased energy supply, transportation, and infrastructure demands caused by the rapid expansion of urban populations. It is a complex undertaking to reconcile the imperative for economic progress with the shift towards carbon neutrality in urban environments. Furthermore, environmental levies and oil prices are additional factors that have a substantial impact on carbon neutrality initiatives. The variability of crude prices affects the cost competitiveness of a wide range of energy sources Lin, Chau [17]. Increasing crude prices may heighten the appeal of renewable energy sources, thereby stimulating their implementation. Conversely, the economic incentive to transition to cleaner energy sources may be diminished by falling crude prices. Conversely, environmentally related taxes furnish governing bodies with an indispensable fiscal instrument to incentivize investments and conduct that are environmentally sustainable Zhang, Zhang [18]. The interaction among these factors also includes income levels, foreign investments, and financial considerations. Increased access to financial services and deepening are crucial for financing carbon-neutral initiatives. These entities facilitate the acquisition of essential funds by governments, businesses, and individuals to fund renewable energy initiatives, enhance energy efficiency, and establish sustainable transportation systems. Similarly, FDI can facilitate the transition to low-carbon economies by furnishing the necessary financial resources and expertise for large-scale sustainable initiatives. As a determinant, per capita income levels reveal the financial means by which communities and individuals can invest in carbon-neutral practices and technologies. There is often a positive correlation between per capita income and the ability to implement energy-efficient technologies and renewable energy solutions, which in turn accelerates the achievement of carbon neutrality [12, 19]. Capabilities for innovation in human capital and research and development [R&D] are crucial for the progress of carbon-neutral initiatives. These determinants promote the exchange of knowledge, the generation of novel technologies to mitigate carbon emissions, and innovation. Strong R&D capabilities and well-educated populations can expedite the development and adoption of sustainable solutions. The level of receptiveness towards global cooperation is pivotal in achieving carbon neutrality. Countries that are willing to exchange knowledge, technologies, and best practices with their international counterparts are more aptly positioned to gain insights from worldwide experiences and expedite their journey toward carbon neutrality. The degree of government commitment to sustainability and the magnitude of government expenditures are crucial determinants. Governments possess the capacity to exert considerable influence over carbon-neutral initiatives through the provision of financial support for research, enforcement of policies that foster sustainability, and introduction of incentives Wang and Wang [15]. Green Finance [GF, hereafter] refers to structured financial activities that aim to achieve better environmental outcomes by supporting projects promoting sustainability, such as renewable energy, energy efficiency upgrades, and pollution reduction initiatives. It plays a crucial role in mobilizing investments to combat climate change and environmental degradation. Examples of green finance include green bonds, sustainable asset management, and loans for energy-efficient home improvements, in the study of [20–22] postulated that GF serves as an impetus in the pursuit of carbon neutrality. Through the allocation of financial resources to initiatives that are sustainable and environmentally friendly, it significantly contributes to the mitigation of carbon emissions. It promotes investments and scientific inquiry into carbon capture technologies, directly contributing to reducing emissions. Green finance also directs financial resources toward environmental protection, pollution control, and green development, which reduces carbon emissions per unit of output. In support of carbon neutrality objectives, green finance expands to supply the capital required for renewable energy initiatives, energy efficiency enhancements, and sustainable practices Xue, Ma [9]. Additionally, it facilitates the shift away from carbon-intensive sectors, thereby promoting innovation and employment generation. Green finance is pivotal in facilitating worldwide endeavors to achieve carbon neutrality, directly influencing the reduction of carbon emissions and promoting sustainability Jin, Lv [23]. The advancement of green technologies, which is encompass a wide range of innovations designed to enhance environmental sustainability without depleting natural resources. These technologies aim to reduce or eliminate environmental impacts and provide solutions to ecological challenges. Examples include renewable energy technologies like solar and wind power, electric vehicles, water purification systems, and advanced recycling systems [22, 24]. The goal of green technologies is to create sustainable solutions for current environmental issues and innovate for a future where economic growth is decoupled from environmental impact, is critical to achieving carbon neutrality. The ramifications of this phenomenon are extensive, permeating various facets of the pursuit of sustainability. Innovation has a beneficial effect on carbon neutrality Zhang, Zhang [18]. Technological advances that are environmentally friendly improve energy systems, decrease carbon dioxide emissions, and advance sustainable development. By directly reducing net emissions, low-carbon technologies [e.g., energy-efficient solutions and renewable energy] bring nations closer to carbon neutrality Cai, Zheng [25]. In addition, innovations in green technology impact urbanization and economic expansion, thereby indirectly enhancing the efficacy of carbon emissions. In addition to prioritizing green environmental protection, this technology alleviates environmental and energy pressures [26, 27]. Fundamentally, green technological innovation promotes sustainability, efficiency, and decreased carbon emissions, making it an indispensable catalyst for carbon neutrality. Enabling the implementation of cleaner and more efficient technologies in sectors such as energy, transportation, and manufacturing advances nations toward a future characterized by zero net carbon emissions. Green energy, specifically renewable energy sources, is of critical importance in the pursuit of achieving carbon neutrality. Green energy has a significant influence on carbon neutrality, as evidenced by studies Li, Li [11]. GE sources, such as hydropower, wind, and solar, are renowned for their capacity to substitute fossil fuels, significantly contributing to greenhouse gas emissions and thus mitigating carbon emissions. Carbon emissions are reduced substantially by replacing these polluting energy sources with sustainable and pure alternatives Bölük and Mert [10]. In addition to facilitating a significant reduction in carbon emissions, the implementation of renewable energy sources also contributes to an enhancement of environmental quality. The transition to more sustainable energy sources improves the purity of air and water, which is advantageous for ecosystems and human health. In addition, it mitigates the impacts of global warming, extreme weather events, and sea-level rise by diminishing the concentration of greenhouse gases in the atmosphere, thereby contributing to the resolution of climate-related issues. Green energy is a critical element in the endeavor to achieve carbon neutrality. It actively contributes to reducing carbon emissions, thereby playing a fundamental role in the transition to a more sustainable and environmentally responsible energy landscape without impeding the attainment of carbon neutrality, see Fig 1. Advocating for investments in green energy and renewable energy sources advances the objective of long-term carbon neutrality for nations and communities, thereby fostering a symbiotic relationship between energy generation and environmental conservation Dahal, Juhola [28]. Download: PPT PowerPoint slide PNG larger image TIFF original image Fig 1. CO2 emission by top polluted nations. https://doi.org/10.1371/journal.pone.0308170.g001 In the rapidly evolving landscape of sustainable development, the intertwining roles of green finance, technological innovation, and green energy have become pivotal in steering economies towards carbon neutrality. Our investigation is driven by the overarching goal to delineate how integrated financial, technological, and energy strategies can effectively reduce carbon footprints and foster an environmentally sustainable future. The entire study focused on the addressing the following objectives. First, To Assess the Impact of Green Finance on Technological Innovation in the Energy Sector. Second, To Investigate the Role of Technological Innovation in Enhancing Green Energy Production. Third, To Analyze the Contribution of Green Energy to Achieving Carbon Neutrality. On the basis of above stated objectives, the study formulate the following hypothesis. H1: Greater Access to Green Finance Positively Correlates with clean energy inclusion in the energy mix led to carbon emission H2: Technological Innovations in Green Energy Production Significantly Reduce Carbon Emissions. H3: The Integration of Green Energy Leads Directly to Progress Towards Carbon Neutrality The contribution of the study into the existing literature are as follows; First, This paper discusses green finance and highlights its important role in developing sustainable economic growth and protection of the environment. The literature, in this case, has further recommended that green finance encourages projects designed on the basis of sustainability and plays an important role in encouraging economic growth by reducing carbon. author’s expand on the current work by adding empirical evidence of how green finance supports BRICS in achieving this goal of carbon neutrality. This is important since it links financial practices and environmental outcomes to developing economies, which are quite under-represented in the research that comprises environmental economics. Second, there has been a lot of debate with respect to the fundamental factors associated with technological innovation in green technologies as one of the benchmarks in reducing carbon footprints and enhancing sustainable practices across industries. The contribution of this literature is that it presents detailed insight into how certain green technologies can help in gaining substantial CO2 emission reductions. Looking at the impact of technological development on carbon emission, the paper is very informative about the mechanisms through which technology affects environmental outcome and highlights the importance of R&D in sustainability goals. Third, the research further contributes to the discourse on renewable energy’s role in achieving carbon neutrality. While the utilities of green energies like wind and solar are well documented, this adds new depth to the literature as it analyzes and concretes how such energies play a direct role in carbon neutrality. It empirically validates the theoretical models that suggest that renewable energies not only replace fossil fuels but also play a very complementary role in an overall energy strategy of a country towards carbon neutrality. Fourth, methodologically, advanced techniques of panel data estimations were applied to this study, thereby implying that the findings were more robust. The use of such models as CADF, CIPS for panel unit root tests, and CUP-FM, CUP-BC, DSUR for estimation caters to the potential problems of cross-sectional dependence and slope heterogeneity. This methodological rigor hence outlines a template for future research in related fields of study, ensuring that not only are the results applicable but that they can also be replicated in different contexts. Finally, the study does provide actionable insights to the policymakers by proving efficiency within the integrated policies with finance, technology, and renewable energy, hence provides a roadmap to comprehensive policies that can hasten the transition to a low-carbon economy. It highlights the need for concerted efforts between different sectors and puts its major emphasis on the role played by policy in facilitating these changes. In summary, the study from Qamruzzaman and Karim adds to existing theories around green finance, technological innovation, and renewable energy but also gives new empirical evidence linking several gaps in the literature. It is a paper methodologically consistent and analytically dense; the paper makes an important contribution to furthering understanding of how integrated strategies might be effectively addressed as the challenge of carbon neutrality in developing and emerging economies. Literature survey and hypothesis development Green finance and carbon neutrality. A number of nations are now striving to build and strengthen a sustainable financial system that gives priority to economic progress, social well-being, and environmental preservation [29]. Strengthening green finance, according to [30, 31] is a viable approach to effectively promote equitable economic development. The Green Investment Report of the World Economic Forum categorizes investments in renewable energy, energy efficiency technology, sustainable mobility, and solid waste management [excluding nuclear and hydropower] as green investments [32]. Glomsrød and Wei [33] found that green financing has had a beneficial effect on the economy. It has resulted in a higher GDP, a reduction in worldwide coal use, and an upsurge in the utilization of non-fossil power. These findings indicate that green financing can significantly facilitate the shift towards a low-carbon future [33]. Green finance can make a substantial contribution to the achievement of sustainable development [34–36]. The study of Xue, Ma [9] discovered that green finance is a way to encourage investments and research in carbon capture, which helps to decrease carbon emissions. Overall, green finance is seen as a crucial tool in the pursuit of carbon neutrality and is now a top priority for numerous countries. Wang and Wang [15] documented that green finance also guides social funds towards activities that promote green development and allocate more resources to pollution control and environmental protection, which reduces carbon emissions per output unit and enhances regional carbon removal capacity, ultimately promoting carbon neutrality. Jin, Lv [23] said green finance involves financial investments in sustainable development projects that have environmental benefits. Its growth can contribute to achieving carbon neutrality goals. Sun, Bao [37] found that by implementing green financing, environmental pollution at the country level can be reduced. Additionally, a 1% increase in renewable energy consumption can lead to a decrease in carbon dioxide emissions by 0.103%. Fang, Yang [38] ascertained that green finance and energy efficiency effectively mitigate carbon emissions without hindering economic growth. Lin, Chau [17] revealed that green finance and investments in RE have the potential to yield financial advantages for the environment and promote sustainable development as a whole. Wang, Huang [39] also identified that green finance is the most suitable financial strategy to reduce carbon emissions. In the case of china [40], implemented a study assessing the potential role of GF in achieving carbon neutrality and unveiled the contributory effects of GF through the augmentation of energy efficiency in the energy mix. Another study [41] established that financial inclusion and public-private investment through green finance foster the prospects of CO2 control, which leads to carbon neutrality. A similar vine of study findings can be found in the study of [42]. for OECD [23] discovered that EPU is adversely tied to carbon neutrality. At the same time, the issue of green bonds in financing clean energy has exposed beneficial effects for carbon neutrality. Based on the existing literature, the study established the following hypothesis for empirical assessment. Hypothesis: There is a positive linkage between green finance and carbon neutrality Green technology and CO2. The pursuit of Green Technological Innovation [GTI] represents a concerted effort to achieve sustainable development, thereby reaping the multifaceted benefits in the realms of society, economy, and the environment. Central to this endeavor is the imperative to ensure energy and resource security while simultaneously curtailing or mitigating environmental degradation, as elucidated by Wang, Qamruzzaman [21], Wang, Usman [43]. GTI, as an overarching concept, is inherently tied to the attainment of greenhouse gas reduction targets, the enhancement of energy efficiency, and the safeguarding of environmental integrity. Beyond its ecological significance, the proliferation of GTI is a catalyst for augmenting the energy sector, a cornerstone of economic growth. Within this context, Hung [44] has undertaken a thorough investigation into the profound impact of GTI on carbon neutrality, relying on empirical data spanning the period from 1996 to 2012, encompassing the developing world economies. GTI and carbon neutrality are closely intertwined, playing crucial roles in our ongoing commitment to safeguarding the environment. GTI involves the development and use of environmentally friendly technologies. At the same time, carbon neutrality focuses on achieving a balance between carbon emissions and carbon removal from the atmosphere. The profound link between these two ideas becomes evident, particularly in highly developed economies [18]. Researchers have explored the effects of green technological innovation on carbon emissions in countries such as China and Turkey. The findings highlight the important role it plays in advancing the goal of carbon neutrality [25, 45, 46]. In the journey towards carbon neutrality, renewable energy and green finance play a crucial role [47]. Existing literature advocated that higher green technological innovation can revolutionize the energy industry and drive economic expansion. A recent study conducted by Qamruzzaman, Karim [48] examined the impact of GTI on the pursuit of carbon neutrality with data from 1996 to 2012, with a focus on economies in developing countries. GTI threshold effect is determined for each individual by considering their unique income situation. In addition, GTI has a minimal effect on carbon emissions in low-income nations. GTI truly excels in addressing the pressing issue of CO2 emissions and its impact on the environment, all while promoting economic development. Fakher, Ahmed [49] conduct a thorough investigation into the precise impact of GTI on CO2 emissions. The findings of this study indicate that GTI is most effective in countries with strong economic conditions. In addition, there is no available data to substantiate the assertion that GTI has a substantial impact on reducing CO2 emissions in developing nations. The results of this research are highly reliable as they encompass various aspects of the model. The idea proposes the development and implementation of GTI in developing countries, aiming to stimulate economic growth and improve quality of life. In a recent study by Nizam, Zaman [50], new insights were gained into the role of GTI in reducing greenhouse gas emissions with data from 2000–2018. The study utilizes Ordinary Least Squares [OLS] analyses and the nonlinear Autoregressive Distributed Lag [ARDL] technique to establish the relationship between the variables. The outcomes are greatly influenced by the country and its economic conditions, and the given variables demonstrate both one-way and two-way causal connections. For G-10, Jian and Afshan [6], through the execution of CS-ARDL, investigated the nexus between GF and GTI in establishing carbon neutrality, and the study ended on a positive note. That is, the development of GF and GTI fosters environmental sustainability by the reduction of CO2 emissions in the environment. Furthermore, Su, Liu [14] found that technological advancements can improve energy systems and promote sustainable development by reducing carbon dioxide emissions. Zhang, Zhang [18] said these innovations have had a significant and positive effect on carbon emissions in advanced economies. The development and diffusion of low-carbon technologies can achieve carbon neutrality by directly reducing net emissions, as claimed by Cai, Zheng [25]. Additionally, Dong, Zhu [16] unveiled green technology innovation can indirectly impact carbon emission efficiency by influencing economic growth and urbanization. Gao, Wang [51] discovered that green technology innovation is crucial in mitigating carbon emissions. Zeng, Li [52] found that green technology innovation emphasizes green environmental protection, which can effectively soothe the dual pressures of energy and the environment. Paramati, Mo [13] documented that green technology innovation aims to decrease carbon emissions by investing a significant amount of money into innovative technological advancements. Green technological innovation does not hinder carbon neutrality, which aims to achieve zero net carbon emissions. On the contrary, it aids in reducing carbon emissions and advancing carbon neutrality. Zeng, Li [52] contribute by conducting an analysis of GTI levels across different provinces in China, scrutinizing panel data from 2001 to 2019 by deploying panel threshold and econometric models. Study findings are instructive, revealing an upward trajectory in GTI levels, albeit accompanied by relatively low innovation effectiveness in China’s Western provinces. This spatial dimension is pivotal, with pronounced effects observed in underdeveloped regions, where GTI correlates with substantial reductions in carbon emissions [48, 53–55], which underscores the symbiotic relationship between GTI and sustainable development, heralding the promise of a harmonious coexistence between technological innovation and environmental preservation. Based on existing literature, the following hypothesis has been established for empirical assessment. H2: Green technological innovation fosters carbon neutrality Green energy and carbon neutrality. Within the context of addressing climate change and promoting sustainable development, the importance of adopting green energy consumption and striving for carbon neutrality cannot be overstated. Green energy, derived from renewable sources such as wind, solar, hydro, and geothermal power, plays a vital role in reducing carbon emissions and advancing towards carbon neutrality [39, 56, 57]. Achieving carbon neutrality is of utmost importance in our efforts to combat global warming and ensure a sustainable future. Given the significant impact of carbon emissions on global warming, addressing this issue has become a paramount concern for governments, businesses, and individuals worldwide [41, 58]. Green energy is a viable alternative to fossil fuels due to its minimal or negligible carbon dioxide emissions. It has the potential to significantly reduce greenhouse gas emissions and could play a crucial role in achieving carbon neutrality [11, 59]. Extensive research has been conducted on the positive impact of transitioning to renewable energy sources in mitigating pollution. When nations and regions prioritize renewable energy, they can significantly reduce their carbon footprints [60, 61]. Renewable energy sources such as solar and wind have gained significant popularity due to their scalability and minimal environmental impact. Improved energy storage solutions and highly efficient renewable energy systems are two notable technological advancements that will play a crucial role in addressing these challenges. Numerous nations and regions have made significant progress in their journey towards carbon neutrality by augmenting the proportion of renewable energy in their overall energy consumption [10, 62]. Tracking progress toward carbon neutrality involves monitoring various indicators and metrics, such as greenhouse gas inventories, energy consumption statistics, and emissions reduction objectives. These enable us to closely monitor the outcomes of our shift towards sustainable energy sources. Existing literature confirms the importance of exploring and adopting renewable energy sources that are carbon-free in order to bridge the divide between the promises made and the actual progress towards achieving net-zero CO2 emissions [9, 14, 18, 63–65]. Research suggests that the utilization of green energy and renewable energy sources is of utmost importance in achieving carbon neutrality. Green financing and investment in renewable energy play a crucial role in driving positive change; suggesting the progress of renewable energy and carbon emissions is complex, and improving the carbon efficiency of energy utilization is highly significant [41, 58, 66]. Carbon neutrality can be achieved through the implementation of research and development in environmental and renewable energy. The study of [38] emphasizes the importance of collaboration in achieving carbon neutrality through the implementation of climate change mitigation technology, enhancing energy efficiency, and effectively managing natural resources. Based on the empirical findings offered by [38, 39, 45, 60], it is recommended that China takes proactive measures to encourage investment in green energy and increase the share of renewable energy sources. This will be crucial in achieving long-term carbon neutrality. The use of green energy has the potential to contribute significantly to achieving carbon neutrality. Bölük and Mert [10] discovered that green energy sources, including renewable energy, have the potential to mitigate carbon emissions through their substitution for fossil fuels, which are known to release greenhouse gases. Li, Li [11] found that utilization of renewable energy sources can substantially reduce carbon emissions and enhance environmental quality. To achieve sustainable development, renewable energy consumption is necessary as it helps to reduce carbon emissions, as documented by Yu, Zheng [67]. Bhowmik, Bhowmik [62] ascertained that by substantially reducing carbon dioxide [CO2] emissions, green energy could optimize energy structure and facilitate green development. Raza, Ghasali [58] uncovered that sustainable energy is promoted by green energy, which can aid in carbon emission reduction and carbon neutrality. Sun, Guan [29] found that promoting investments in green energy can result in a more significant proportion of renewable energy sources being utilized and long-term carbon neutrality being achieved. While low-carbon innovation can aid in achieving carbon neutrality through direct reductions in net emissions, it can also hinder pollution from other sources, said by Cai, Zheng [25]. Also, Dahal, Juhola [28] discerned that promoting renewable energy sources has the potential to achieve carbon neutrality, which could function as renewable energy storage systems. Ultimately, the achievement of a sustainable future and the reduction of greenhouse gas emissions hinge upon the crucial link between the utilization of green energy and the attainment of carbon neutrality. The literature extensively discusses the impact of green energy in reducing carbon emissions, along with the policies, technology, and challenges that hinder its widespread adoption. Gaining a deep understanding of this interrelation is crucial in order to make informed assessments and implement impactful measures towards a carbon-neutral future, especially in light of the ongoing challenges posed by climate change. Research gap of the study The research gap identified in this study pertains to understanding the intricate dynamics between green financing, technological innovation in green technology, and their combined impact on economic growth and pollution reduction in the context of the top 25 most polluted countries. While previous studies have emphasized the role of green finance and technology in combating climate change, there is a significant need for a deeper examination of how these elements specifically contribute to economic revitalization, job creation, and innovation in heavily polluted regions. Additionally, the study seeks to bridge the gap in knowledge regarding the specific effects of these factors on reducing pollution and advancing toward carbon neutrality within these nations. This includes a detailed exploration of the policies that can effectively support this transition and how different regions might implement tailored strategies to achieve these goals without compromising economic stability. The research aims to provide comprehensive insights that can guide the development of robust environmental policies and promote sustainable development aligned with global efforts like the Paris Agreement and the United Nations Sustainable Development Goals [SDGs]. Dara and methodology of the study The motivation of the study is to gauge the role of green finance, green technological innovation, and green energy in the process of carbon neutrality in the top 25 CO2-emitting nations for the period 2005–2019. The generalized empirical equation is as follows. [1] In accordance with existing literature, several studies have found that trade openness and financial openness significantly influence the process of either carbon control or augmentation of CO2, for instance [68]. The impact of TO and FO on CO2 emission varies in terms of the economic structure. Thus, the above Eq (1) has been extended with the inclusion of TO and FO. The revised Eq (1) is as follows. [2] Where CN, GF, GTI, GE, TO, and FO represent carbon neutrality, green finance, green technological innovation, green energy, trade openness, and financial openness, for variable definition, see Table 1. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 1. Details of the variables. https://doi.org/10.1371/journal.pone.0308170.t001 Theoretical framework The STIRPAT model, also referred to as the IPAT model familiarized by [69], is a widely recognized theoretical framework employed to assess the environmental consequences of human activities [70, 71]. The acronym stands for "Stochastic Impacts by Regression on Population, Affluence, and Technology." The model proposes that various factors, including population, affluence, and technology, influence the impact on the environment. The mathematical equation of the IPT model is as follows. I represent the environmental impact, which can be assessed through different metrics like carbon emissions, deforestation rates, and water pollution. The population size, denoted as P, represents the count of individuals residing within a specific geographical area. A represents affluence, which denotes the measure of consumption and economic activity per person. T stands for technology, which encompasses the effectiveness and eco-friendliness of the technologies employed in manufacturing and consumption. The equation indicates that the environmental impact is influenced by multiple factors, including population growth, increased consumption as a result of higher affluence, and the efficiency of technology in relation to the environment [72]. Through careful analysis of the interconnections among these factors, researchers are able to gain valuable insights into the underlying causes of environmental change [70]. This knowledge can then be used to formulate effective strategies for promoting sustainable development. The PAT equation is as follows; [3] Following the literature [73], With the log transformation, the Eq (2) can be rewritten in the following manner [4] The STIRPAT model is known for its flexibility and openness, allowing for dynamic adjustments of control factors based on the specific research purpose and needs of this paper. Thus, in this study, models were developed based on the results of GRA to examine the specific factors that contribute to carbon emissions in different provinces. These models focused on the significant factors influencing each nation. Taking into account the explained and explanatory variables, the above equation can be rewritten in the following manner. [5] lnGF measures the level of environmentally-friendly financial activities within a country, covering a range of financial instruments and investments that support programs aimed at promoting environmental sustainability. Based on the analysis, it is expected that the value of β₁ will be positive; that is, there is an expected increase in the adoption of green financing, which will contribute to achieving carbon neutrality, which means that more investments in eco-friendly initiatives will be made, leading to a cleaner and healthier environment. The lnGTI [Green Technical Innovation] variable measures the level of eco-friendly technological progress in a specific country involving the creation and application of technology that is environmentally sustainable. The coefficient β₂ represents the expected change in carbon neutrality when the natural logarithm of green technology innovation increases by one unit. Based on the analysis, it can be inferred that the sign of β₂ is positive. This indicates that an increase in innovation in green technology is expected to result in a higher level of carbon neutrality. lnGE [Green Energy] measures the utilization and progress of eco-friendly energy sources within a country. The sign of β₃ is projected to be positive, as the increased adoption of green energy is expected to lead to a decrease in carbon emissions and a promotion of carbon neutrality. The variable "Trade openness" measures the level of a country’s involvement in international trade. The coefficient β₄ represents the expected impact on carbon neutrality when trade openness increases by one unit, as measured by the natural logarithm. The sign of β₄ is uncertain and depends on the characteristics of trade. Promoting trade openness can contribute to the increased accessibility of energy-efficient products and practices. Nevertheless, there is a possibility that it could increase transportation-related emissions. Therefore, the value of β₄ could have either a positive or negative sign, depending on the specific context of the data. The measure of financial openness, known as lnFO, provides a quantitative assessment of the degree to which a country is open in terms of its financial activities. Financial openness refers to the ease with which money can flow in and out of a country. The coefficient β₅ represents the expected impact on carbon neutrality when there is a one-unit increase in the natural logarithm of financial openness. The anticipated trend of β₅, much like trade openness, is subject to uncertainty and can vary based on the specific circumstances at hand. Increasing financial transparency can encourage environmentally friendly investments. However, it also poses the danger of encouraging speculative or environmentally harmful practices. Therefore, the value of β₅ can have either a positive or negative sign, depending on the specific conditions. Fig 2 exhibited the conceptual framework and empirical nexus of the study. Download: PPT PowerPoint slide PNG larger image TIFF original image Fig 2. Conceptual framework and empirical nexus. https://doi.org/10.1371/journal.pone.0308170.g002 Justification of the study In light of the pressing global issues surrounding climate change and environmental degradation, it is crucial to gain a comprehensive understanding of the complex mechanisms at play in the transition towards carbon neutrality, particularly in heavily polluted countries. Utilizing green financing is crucial for promoting economic growth in countries grappling with environmental issues. Through the promotion of investments in sustainable projects, there exists a substantial opportunity to rejuvenate economies, create employment prospects, and cultivate groundbreaking innovation. Understanding the crucial importance of green finance is vital for policymakers and financial institutions. It enables them to effectively raise funds for initiatives aimed at reducing carbon emissions. In addition, the study delves into the correlation between innovation in green technology and its impact on economic growth. As countries strive to develop and adopt sustainable technology, they frequently gain a significant advantage in the global market, thereby stimulating economic growth. The economic aspect of this research is crucial in addressing the dual challenge of fostering economic growth while also ensuring environmental sustainability. This resource offers valuable insights into the potential economic benefits of transitioning to carbon neutrality alongside the effective reduction of pollution. This study offers valuable insights into the economic advantages of transitioning to a carbon-neutral economy. It highlights the potential for increased investment in green finance and the stimulation of green technological innovation. Green finance has become a crucial tool in the pursuit of carbon neutrality and promoting sustainable economic growth [4]. It focuses on environmentally friendly investments and practices, which are essential for creating a greener future. The scholarly papers under review make a significant contribution to our understanding of the crucial role of substantial investments in green and low-carbon initiatives in the fight against climate change and the pursuit of carbon neutrality. Studies emphasize the importance of robust regulatory frameworks that promote greater access to green finance and the adoption of carbon-neutral practices [14, 64, 74]. It highlights the importance of establishing robust regulatory frameworks and increasing the availability of green finance to address these issues effectively. The transition to a climate-neutral economy offers a significant opportunity for regions undergoing industrial transition to redirect investments from carbon-intensive sectors to cleaner and more modern industries. The specific policies that can facilitate a fair carbon-neutral transition may differ from region to region, as there is no universally applicable pathway. It is crucial to develop comprehensive, long-term strategies for transitioning to a climate-neutral economy. This study has the potential to make a significant contribution to the development of economic policies that are aimed at promoting sustainable development and effectively combating climate change. These policies, such as the Paris Agreement and the Sustainable Development Goals [SDGs], are crucial in addressing the pressing environmental challenges we face today. Investing in a climate agenda and transitioning to a climate-neutral economy can significantly contribute to fostering economic growth. The development of green finance can significantly contribute to the advancement of new energy technologies, thereby playing a crucial role in achieving carbon neutrality goals. Immediate action is imperative to address the concerning levels of pollution observed in the top 25 most polluted countries. Having a comprehensive understanding of the specific impacts of green financing, green technical innovation, and clean energy adoption on pollution reduction is crucial for the development of effective environmental policies. Embracing sustainable energy sources is crucial in addressing carbon emissions, which significantly contribute to climate change and environmental degradation. Examining the role of renewable energy and its impact on the environment can yield valuable insights for developing strategies to mitigate pollution and enhance air and water quality. In addition, the research provides valuable insights into how the advancement of green technology can drive the adoption of sustainable practices and technologies, resulting in tangible and positive effects on the environment. In the face of resource depletion and habitat loss, creativity becomes a vital factor. The research is in line with the United Nations Sustainable Development Goals [SDGs], specifically SDG 7 [Affordable and Clean Energy], SDG 13 [Climate Action], and SDG 15 [Life on Land]. It emphasizes the critical importance of reducing greenhouse gas emissions, tackling pollution, and promoting sustainable practices in countries facing environmental challenges. In addition, this study makes a noteworthy contribution to the global efforts aimed at addressing climate change, as outlined in the Paris Agreement. The research offers valuable insights into the environmental benefits of transitioning to a carbon-neutral economy, such as reduced carbon emissions and improved air quality. The transition to a climate-neutral economy has the potential to create exciting opportunities, leading to increased employment, the emergence of innovative industries, and a more sustainable environment [1]. In order to achieve a climate-neutral economy, it is imperative to undertake a comprehensive and extensive transformation of industrial practices. To achieve a climate-neutral economy by 2050, it will be imperative to gradually phase out or extensively revamp industries that contribute substantial carbon emissions [2]. The transition to a climate-neutral economy presents a valuable opportunity for regions experiencing economic changes to reallocate investments from carbon-intensive sectors to clean and advanced industries [2]. This research has the potential to contribute significantly to the formulation of environmental policies that promote sustainable development and effectively tackle climate change. It aligns with important global initiatives such as the Paris Agreement and the Sustainable Development Goals [SDGs]. The climate agenda has the potential to impact economic development significantly, and the transition to a climate-neutral economy can be achieved without jeopardizing economic growth and prosperity [23]. The advancement of green financing can potentially accelerate the advancement of innovative energy technology, thereby contributing to the achievement of carbon neutrality goals [66]. Estimation strategies Slop of homogeneity and cross-sectional dependency test. Fig 3 displayed the flows of estimation strategies of the study. The Slop Heterogeneity Test [SHT] and the Cross-Sectional Dependency Test [CSD] are important statistical techniques utilized in econometrics and empirical research to assess the validity of assumptions and the reliability of findings in the analysis of panel data. The SHT focuses on examining slope heterogeneity, which pertains to the variability in the relationship between independent factors and the dependent variable across different units or entities in a panel dataset. SHT assists researchers in identifying potential violations of the fundamental assumptions of fixed or random effects models, thereby allowing for more accurate model design. On the other hand, the CSD test assesses whether there is cross-sectional interdependence among individual observations in a panel dataset. Including cross-sectional dependencies is crucial, as neglecting them can lead to biased parameter estimations and inaccurate statistical conclusions in documenting the heterogeneous attributes and cross-sectional dependency following the framework offered by [75–78]. The following equation is to be implemented in deriving the test statistics. [6][7][8][9][10] Download: PPT PowerPoint slide PNG larger image TIFF original image Fig 3. Flows of empirical model execution. https://doi.org/10.1371/journal.pone.0308170.g003 Panel unit root test: CADF and CIPS To analyze the stationary properties, the study employed the CADF [Cross-Sectionally Augmented Dickey-Fuller] test introduced by [79] and the CIPS [Cross-Sectional Implied Pesaran-Shin] test familiarized by [80]. These tests were used to assess whether individual time series in a panel dataset exhibit unit root characteristics. A unit root signifies the existence of a stochastic trend in a time series variable. If not adequately addressed, this can lead to inaccurate regression results. These tests play a crucial role in panel data analysis, especially in the fields of econometrics and finance, as they assist researchers in evaluating the stationarity of variables. This assessment is crucial for guaranteeing the accuracy and dependability of statistical analysis. The CADF test builds upon the traditional Augmented Dickey-Fuller [ADF] unit root test by incorporating cross-sectional dependency, enhancing its analytical capabilities. This is accomplished by enhancing the test with cross-sectional averages of the variables being studied. The CIPS test serves [80] the purpose of addressing cross-sectional dependence by analyzing a collection of common attributes and their potential impact on individual time series. The equation for the CIPS test is formulated in a complex manner, taking into account shared variables and components of error. The generalized function for CIPS is as follows. [11] Critical values for the CADF examination may also be obtained using Monte Carlo simulations or bootstrap methods. [12][13][14][15] CUP-FM, CUP-BC, and DSUR estimation Documenting the coefficients of GF, GTI, and GE cutting-edge tests, introduced by Bai, Kao [81], commonly known as CUP-FM and CUP-BC, has considered which enables to handle the challenges of cross-sectional dependence [CSD], endogeneity, serial correlation, and heteroscedasticity [82–85]. The unique quality of these methods is that they can deal with explanatory variables that are fractionally integrated, allowing for the optimum estimate of continuous parameters, covariance matrices, and factor loadings. Since these techniques successfully deal with CSD difficulties and prevent the omission of nonlinearity and fractional integration worries, they have attracted much attention in the recent literature [86]. Embracing these sophisticated tools, this study pushes the boundaries of empirical analysis, ushering in a new era of insightful findings and groundbreaking discoveries in carbon neutrality research. The following equation is to be executed to unveil the coefficients of explanatory variables. [16] Asymmetric ARDL following the nonlinear framework introduced by [87], the above Eqs [1–3] can be established in the following manner. [17] Where the value of The asymmetric elasticity of GF, GTI, and GE is based on carbon neutrality [CN]. The asymmetric decomposition of GF [], GTI [], and GE [] can be derived through the execution of the following equations. Now, Eq (16) is transformed into asymmetric long-run and short-run coefficient assessment as follows: [18] The D-H causality test [88] is a widely used statistical method in the area of econometrics, which is used in panel data analysis successfully to address inherent biases in cross-sectional and time series investigations. The D-H causality test relies on the premise that an exogenous variable, sometimes referred to as an instrumental variable, exists that has a simultaneous impact on both the dependent and independent variables but not directly. The following equation is to be implemented to document directional causality. [19] The Durbin-Hausman test statistic is then calculated as follows: [20] Rationality and justification of econometric techniques selection are as follows. First, the features of the data under consideration, i.e., the panel data of more than one country at different points in time, are such that it will influence the choice of the second-generation panel unit root tests [CADF and CIPS]. Most importantly, these tests are designed in a manner that they can handle cross-sectional dependence and heteroscedasticity in panel datasets, ensuring that our unit root testing is robust across different cross-sections. In consideration of the above, estimating through CUP-FM [continuously updated fully modified] and CUP-BC techniques help control for cross-sectional dependence and possible endogeneity, a phenomenon that is not unlikely in macroeconomic panel data. Now, a benefit of these methods, of course, is the ease with which consistent and efficient estimates are obtained in the presence of endogenous regressors correlated with panel-specific effects. Efficiency in Estimation: On the basis of the above and the premise that, despite the approach to be followed by our model assuming the estimation of several relations at the same time, it is clear that the related Dynamic Seemingly Unrelated Regression [DSUR] is the appropriate one. This method improves on the standard SUR [Seemingly Unrelated Regression] in the sense that the specifications allow being dynamic, and hence, they capture the time-to-time dynamic more sharply. Second, this study used the Non-linear Autoregressive Distributed Lag [NARDL] model to capture the asymmetric impacts of the variables on carbon neutrality. This is driven by the need to understand how positive and negative shocks in green finance, technological innovation, and adoption of green energy differentially influence the impacts of carbon neutrality targets. NARDL model is most appropriate to our study as it can capture these nonlinearities and provide insights into the dynamics of short-run and long-run relationships. Literature survey and hypothesis development Green finance and carbon neutrality. A number of nations are now striving to build and strengthen a sustainable financial system that gives priority to economic progress, social well-being, and environmental preservation [29]. Strengthening green finance, according to [30, 31] is a viable approach to effectively promote equitable economic development. The Green Investment Report of the World Economic Forum categorizes investments in renewable energy, energy efficiency technology, sustainable mobility, and solid waste management [excluding nuclear and hydropower] as green investments [32]. Glomsrød and Wei [33] found that green financing has had a beneficial effect on the economy. It has resulted in a higher GDP, a reduction in worldwide coal use, and an upsurge in the utilization of non-fossil power. These findings indicate that green financing can significantly facilitate the shift towards a low-carbon future [33]. Green finance can make a substantial contribution to the achievement of sustainable development [34–36]. The study of Xue, Ma [9] discovered that green finance is a way to encourage investments and research in carbon capture, which helps to decrease carbon emissions. Overall, green finance is seen as a crucial tool in the pursuit of carbon neutrality and is now a top priority for numerous countries. Wang and Wang [15] documented that green finance also guides social funds towards activities that promote green development and allocate more resources to pollution control and environmental protection, which reduces carbon emissions per output unit and enhances regional carbon removal capacity, ultimately promoting carbon neutrality. Jin, Lv [23] said green finance involves financial investments in sustainable development projects that have environmental benefits. Its growth can contribute to achieving carbon neutrality goals. Sun, Bao [37] found that by implementing green financing, environmental pollution at the country level can be reduced. Additionally, a 1% increase in renewable energy consumption can lead to a decrease in carbon dioxide emissions by 0.103%. Fang, Yang [38] ascertained that green finance and energy efficiency effectively mitigate carbon emissions without hindering economic growth. Lin, Chau [17] revealed that green finance and investments in RE have the potential to yield financial advantages for the environment and promote sustainable development as a whole. Wang, Huang [39] also identified that green finance is the most suitable financial strategy to reduce carbon emissions. In the case of china [40], implemented a study assessing the potential role of GF in achieving carbon neutrality and unveiled the contributory effects of GF through the augmentation of energy efficiency in the energy mix. Another study [41] established that financial inclusion and public-private investment through green finance foster the prospects of CO2 control, which leads to carbon neutrality. A similar vine of study findings can be found in the study of [42]. for OECD [23] discovered that EPU is adversely tied to carbon neutrality. At the same time, the issue of green bonds in financing clean energy has exposed beneficial effects for carbon neutrality. Based on the existing literature, the study established the following hypothesis for empirical assessment. Hypothesis: There is a positive linkage between green finance and carbon neutrality Green technology and CO2. The pursuit of Green Technological Innovation [GTI] represents a concerted effort to achieve sustainable development, thereby reaping the multifaceted benefits in the realms of society, economy, and the environment. Central to this endeavor is the imperative to ensure energy and resource security while simultaneously curtailing or mitigating environmental degradation, as elucidated by Wang, Qamruzzaman [21], Wang, Usman [43]. GTI, as an overarching concept, is inherently tied to the attainment of greenhouse gas reduction targets, the enhancement of energy efficiency, and the safeguarding of environmental integrity. Beyond its ecological significance, the proliferation of GTI is a catalyst for augmenting the energy sector, a cornerstone of economic growth. Within this context, Hung [44] has undertaken a thorough investigation into the profound impact of GTI on carbon neutrality, relying on empirical data spanning the period from 1996 to 2012, encompassing the developing world economies. GTI and carbon neutrality are closely intertwined, playing crucial roles in our ongoing commitment to safeguarding the environment. GTI involves the development and use of environmentally friendly technologies. At the same time, carbon neutrality focuses on achieving a balance between carbon emissions and carbon removal from the atmosphere. The profound link between these two ideas becomes evident, particularly in highly developed economies [18]. Researchers have explored the effects of green technological innovation on carbon emissions in countries such as China and Turkey. The findings highlight the important role it plays in advancing the goal of carbon neutrality [25, 45, 46]. In the journey towards carbon neutrality, renewable energy and green finance play a crucial role [47]. Existing literature advocated that higher green technological innovation can revolutionize the energy industry and drive economic expansion. A recent study conducted by Qamruzzaman, Karim [48] examined the impact of GTI on the pursuit of carbon neutrality with data from 1996 to 2012, with a focus on economies in developing countries. GTI threshold effect is determined for each individual by considering their unique income situation. In addition, GTI has a minimal effect on carbon emissions in low-income nations. GTI truly excels in addressing the pressing issue of CO2 emissions and its impact on the environment, all while promoting economic development. Fakher, Ahmed [49] conduct a thorough investigation into the precise impact of GTI on CO2 emissions. The findings of this study indicate that GTI is most effective in countries with strong economic conditions. In addition, there is no available data to substantiate the assertion that GTI has a substantial impact on reducing CO2 emissions in developing nations. The results of this research are highly reliable as they encompass various aspects of the model. The idea proposes the development and implementation of GTI in developing countries, aiming to stimulate economic growth and improve quality of life. In a recent study by Nizam, Zaman [50], new insights were gained into the role of GTI in reducing greenhouse gas emissions with data from 2000–2018. The study utilizes Ordinary Least Squares [OLS] analyses and the nonlinear Autoregressive Distributed Lag [ARDL] technique to establish the relationship between the variables. The outcomes are greatly influenced by the country and its economic conditions, and the given variables demonstrate both one-way and two-way causal connections. For G-10, Jian and Afshan [6], through the execution of CS-ARDL, investigated the nexus between GF and GTI in establishing carbon neutrality, and the study ended on a positive note. That is, the development of GF and GTI fosters environmental sustainability by the reduction of CO2 emissions in the environment. Furthermore, Su, Liu [14] found that technological advancements can improve energy systems and promote sustainable development by reducing carbon dioxide emissions. Zhang, Zhang [18] said these innovations have had a significant and positive effect on carbon emissions in advanced economies. The development and diffusion of low-carbon technologies can achieve carbon neutrality by directly reducing net emissions, as claimed by Cai, Zheng [25]. Additionally, Dong, Zhu [16] unveiled green technology innovation can indirectly impact carbon emission efficiency by influencing economic growth and urbanization. Gao, Wang [51] discovered that green technology innovation is crucial in mitigating carbon emissions. Zeng, Li [52] found that green technology innovation emphasizes green environmental protection, which can effectively soothe the dual pressures of energy and the environment. Paramati, Mo [13] documented that green technology innovation aims to decrease carbon emissions by investing a significant amount of money into innovative technological advancements. Green technological innovation does not hinder carbon neutrality, which aims to achieve zero net carbon emissions. On the contrary, it aids in reducing carbon emissions and advancing carbon neutrality. Zeng, Li [52] contribute by conducting an analysis of GTI levels across different provinces in China, scrutinizing panel data from 2001 to 2019 by deploying panel threshold and econometric models. Study findings are instructive, revealing an upward trajectory in GTI levels, albeit accompanied by relatively low innovation effectiveness in China’s Western provinces. This spatial dimension is pivotal, with pronounced effects observed in underdeveloped regions, where GTI correlates with substantial reductions in carbon emissions [48, 53–55], which underscores the symbiotic relationship between GTI and sustainable development, heralding the promise of a harmonious coexistence between technological innovation and environmental preservation. Based on existing literature, the following hypothesis has been established for empirical assessment. H2: Green technological innovation fosters carbon neutrality Green energy and carbon neutrality. Within the context of addressing climate change and promoting sustainable development, the importance of adopting green energy consumption and striving for carbon neutrality cannot be overstated. Green energy, derived from renewable sources such as wind, solar, hydro, and geothermal power, plays a vital role in reducing carbon emissions and advancing towards carbon neutrality [39, 56, 57]. Achieving carbon neutrality is of utmost importance in our efforts to combat global warming and ensure a sustainable future. Given the significant impact of carbon emissions on global warming, addressing this issue has become a paramount concern for governments, businesses, and individuals worldwide [41, 58]. Green energy is a viable alternative to fossil fuels due to its minimal or negligible carbon dioxide emissions. It has the potential to significantly reduce greenhouse gas emissions and could play a crucial role in achieving carbon neutrality [11, 59]. Extensive research has been conducted on the positive impact of transitioning to renewable energy sources in mitigating pollution. When nations and regions prioritize renewable energy, they can significantly reduce their carbon footprints [60, 61]. Renewable energy sources such as solar and wind have gained significant popularity due to their scalability and minimal environmental impact. Improved energy storage solutions and highly efficient renewable energy systems are two notable technological advancements that will play a crucial role in addressing these challenges. Numerous nations and regions have made significant progress in their journey towards carbon neutrality by augmenting the proportion of renewable energy in their overall energy consumption [10, 62]. Tracking progress toward carbon neutrality involves monitoring various indicators and metrics, such as greenhouse gas inventories, energy consumption statistics, and emissions reduction objectives. These enable us to closely monitor the outcomes of our shift towards sustainable energy sources. Existing literature confirms the importance of exploring and adopting renewable energy sources that are carbon-free in order to bridge the divide between the promises made and the actual progress towards achieving net-zero CO2 emissions [9, 14, 18, 63–65]. Research suggests that the utilization of green energy and renewable energy sources is of utmost importance in achieving carbon neutrality. Green financing and investment in renewable energy play a crucial role in driving positive change; suggesting the progress of renewable energy and carbon emissions is complex, and improving the carbon efficiency of energy utilization is highly significant [41, 58, 66]. Carbon neutrality can be achieved through the implementation of research and development in environmental and renewable energy. The study of [38] emphasizes the importance of collaboration in achieving carbon neutrality through the implementation of climate change mitigation technology, enhancing energy efficiency, and effectively managing natural resources. Based on the empirical findings offered by [38, 39, 45, 60], it is recommended that China takes proactive measures to encourage investment in green energy and increase the share of renewable energy sources. This will be crucial in achieving long-term carbon neutrality. The use of green energy has the potential to contribute significantly to achieving carbon neutrality. Bölük and Mert [10] discovered that green energy sources, including renewable energy, have the potential to mitigate carbon emissions through their substitution for fossil fuels, which are known to release greenhouse gases. Li, Li [11] found that utilization of renewable energy sources can substantially reduce carbon emissions and enhance environmental quality. To achieve sustainable development, renewable energy consumption is necessary as it helps to reduce carbon emissions, as documented by Yu, Zheng [67]. Bhowmik, Bhowmik [62] ascertained that by substantially reducing carbon dioxide [CO2] emissions, green energy could optimize energy structure and facilitate green development. Raza, Ghasali [58] uncovered that sustainable energy is promoted by green energy, which can aid in carbon emission reduction and carbon neutrality. Sun, Guan [29] found that promoting investments in green energy can result in a more significant proportion of renewable energy sources being utilized and long-term carbon neutrality being achieved. While low-carbon innovation can aid in achieving carbon neutrality through direct reductions in net emissions, it can also hinder pollution from other sources, said by Cai, Zheng [25]. Also, Dahal, Juhola [28] discerned that promoting renewable energy sources has the potential to achieve carbon neutrality, which could function as renewable energy storage systems. Ultimately, the achievement of a sustainable future and the reduction of greenhouse gas emissions hinge upon the crucial link between the utilization of green energy and the attainment of carbon neutrality. The literature extensively discusses the impact of green energy in reducing carbon emissions, along with the policies, technology, and challenges that hinder its widespread adoption. Gaining a deep understanding of this interrelation is crucial in order to make informed assessments and implement impactful measures towards a carbon-neutral future, especially in light of the ongoing challenges posed by climate change. Green finance and carbon neutrality. A number of nations are now striving to build and strengthen a sustainable financial system that gives priority to economic progress, social well-being, and environmental preservation [29]. Strengthening green finance, according to [30, 31] is a viable approach to effectively promote equitable economic development. The Green Investment Report of the World Economic Forum categorizes investments in renewable energy, energy efficiency technology, sustainable mobility, and solid waste management [excluding nuclear and hydropower] as green investments [32]. Glomsrød and Wei [33] found that green financing has had a beneficial effect on the economy. It has resulted in a higher GDP, a reduction in worldwide coal use, and an upsurge in the utilization of non-fossil power. These findings indicate that green financing can significantly facilitate the shift towards a low-carbon future [33]. Green finance can make a substantial contribution to the achievement of sustainable development [34–36]. The study of Xue, Ma [9] discovered that green finance is a way to encourage investments and research in carbon capture, which helps to decrease carbon emissions. Overall, green finance is seen as a crucial tool in the pursuit of carbon neutrality and is now a top priority for numerous countries. Wang and Wang [15] documented that green finance also guides social funds towards activities that promote green development and allocate more resources to pollution control and environmental protection, which reduces carbon emissions per output unit and enhances regional carbon removal capacity, ultimately promoting carbon neutrality. Jin, Lv [23] said green finance involves financial investments in sustainable development projects that have environmental benefits. Its growth can contribute to achieving carbon neutrality goals. Sun, Bao [37] found that by implementing green financing, environmental pollution at the country level can be reduced. Additionally, a 1% increase in renewable energy consumption can lead to a decrease in carbon dioxide emissions by 0.103%. Fang, Yang [38] ascertained that green finance and energy efficiency effectively mitigate carbon emissions without hindering economic growth. Lin, Chau [17] revealed that green finance and investments in RE have the potential to yield financial advantages for the environment and promote sustainable development as a whole. Wang, Huang [39] also identified that green finance is the most suitable financial strategy to reduce carbon emissions. In the case of china [40], implemented a study assessing the potential role of GF in achieving carbon neutrality and unveiled the contributory effects of GF through the augmentation of energy efficiency in the energy mix. Another study [41] established that financial inclusion and public-private investment through green finance foster the prospects of CO2 control, which leads to carbon neutrality. A similar vine of study findings can be found in the study of [42]. for OECD [23] discovered that EPU is adversely tied to carbon neutrality. At the same time, the issue of green bonds in financing clean energy has exposed beneficial effects for carbon neutrality. Based on the existing literature, the study established the following hypothesis for empirical assessment. Hypothesis: There is a positive linkage between green finance and carbon neutrality Green technology and CO2. The pursuit of Green Technological Innovation [GTI] represents a concerted effort to achieve sustainable development, thereby reaping the multifaceted benefits in the realms of society, economy, and the environment. Central to this endeavor is the imperative to ensure energy and resource security while simultaneously curtailing or mitigating environmental degradation, as elucidated by Wang, Qamruzzaman [21], Wang, Usman [43]. GTI, as an overarching concept, is inherently tied to the attainment of greenhouse gas reduction targets, the enhancement of energy efficiency, and the safeguarding of environmental integrity. Beyond its ecological significance, the proliferation of GTI is a catalyst for augmenting the energy sector, a cornerstone of economic growth. Within this context, Hung [44] has undertaken a thorough investigation into the profound impact of GTI on carbon neutrality, relying on empirical data spanning the period from 1996 to 2012, encompassing the developing world economies. GTI and carbon neutrality are closely intertwined, playing crucial roles in our ongoing commitment to safeguarding the environment. GTI involves the development and use of environmentally friendly technologies. At the same time, carbon neutrality focuses on achieving a balance between carbon emissions and carbon removal from the atmosphere. The profound link between these two ideas becomes evident, particularly in highly developed economies [18]. Researchers have explored the effects of green technological innovation on carbon emissions in countries such as China and Turkey. The findings highlight the important role it plays in advancing the goal of carbon neutrality [25, 45, 46]. In the journey towards carbon neutrality, renewable energy and green finance play a crucial role [47]. Existing literature advocated that higher green technological innovation can revolutionize the energy industry and drive economic expansion. A recent study conducted by Qamruzzaman, Karim [48] examined the impact of GTI on the pursuit of carbon neutrality with data from 1996 to 2012, with a focus on economies in developing countries. GTI threshold effect is determined for each individual by considering their unique income situation. In addition, GTI has a minimal effect on carbon emissions in low-income nations. GTI truly excels in addressing the pressing issue of CO2 emissions and its impact on the environment, all while promoting economic development. Fakher, Ahmed [49] conduct a thorough investigation into the precise impact of GTI on CO2 emissions. The findings of this study indicate that GTI is most effective in countries with strong economic conditions. In addition, there is no available data to substantiate the assertion that GTI has a substantial impact on reducing CO2 emissions in developing nations. The results of this research are highly reliable as they encompass various aspects of the model. The idea proposes the development and implementation of GTI in developing countries, aiming to stimulate economic growth and improve quality of life. In a recent study by Nizam, Zaman [50], new insights were gained into the role of GTI in reducing greenhouse gas emissions with data from 2000–2018. The study utilizes Ordinary Least Squares [OLS] analyses and the nonlinear Autoregressive Distributed Lag [ARDL] technique to establish the relationship between the variables. The outcomes are greatly influenced by the country and its economic conditions, and the given variables demonstrate both one-way and two-way causal connections. For G-10, Jian and Afshan [6], through the execution of CS-ARDL, investigated the nexus between GF and GTI in establishing carbon neutrality, and the study ended on a positive note. That is, the development of GF and GTI fosters environmental sustainability by the reduction of CO2 emissions in the environment. Furthermore, Su, Liu [14] found that technological advancements can improve energy systems and promote sustainable development by reducing carbon dioxide emissions. Zhang, Zhang [18] said these innovations have had a significant and positive effect on carbon emissions in advanced economies. The development and diffusion of low-carbon technologies can achieve carbon neutrality by directly reducing net emissions, as claimed by Cai, Zheng [25]. Additionally, Dong, Zhu [16] unveiled green technology innovation can indirectly impact carbon emission efficiency by influencing economic growth and urbanization. Gao, Wang [51] discovered that green technology innovation is crucial in mitigating carbon emissions. Zeng, Li [52] found that green technology innovation emphasizes green environmental protection, which can effectively soothe the dual pressures of energy and the environment. Paramati, Mo [13] documented that green technology innovation aims to decrease carbon emissions by investing a significant amount of money into innovative technological advancements. Green technological innovation does not hinder carbon neutrality, which aims to achieve zero net carbon emissions. On the contrary, it aids in reducing carbon emissions and advancing carbon neutrality. Zeng, Li [52] contribute by conducting an analysis of GTI levels across different provinces in China, scrutinizing panel data from 2001 to 2019 by deploying panel threshold and econometric models. Study findings are instructive, revealing an upward trajectory in GTI levels, albeit accompanied by relatively low innovation effectiveness in China’s Western provinces. This spatial dimension is pivotal, with pronounced effects observed in underdeveloped regions, where GTI correlates with substantial reductions in carbon emissions [48, 53–55], which underscores the symbiotic relationship between GTI and sustainable development, heralding the promise of a harmonious coexistence between technological innovation and environmental preservation. Based on existing literature, the following hypothesis has been established for empirical assessment. H2: Green technological innovation fosters carbon neutrality Green energy and carbon neutrality. Within the context of addressing climate change and promoting sustainable development, the importance of adopting green energy consumption and striving for carbon neutrality cannot be overstated. Green energy, derived from renewable sources such as wind, solar, hydro, and geothermal power, plays a vital role in reducing carbon emissions and advancing towards carbon neutrality [39, 56, 57]. Achieving carbon neutrality is of utmost importance in our efforts to combat global warming and ensure a sustainable future. Given the significant impact of carbon emissions on global warming, addressing this issue has become a paramount concern for governments, businesses, and individuals worldwide [41, 58]. Green energy is a viable alternative to fossil fuels due to its minimal or negligible carbon dioxide emissions. It has the potential to significantly reduce greenhouse gas emissions and could play a crucial role in achieving carbon neutrality [11, 59]. Extensive research has been conducted on the positive impact of transitioning to renewable energy sources in mitigating pollution. When nations and regions prioritize renewable energy, they can significantly reduce their carbon footprints [60, 61]. Renewable energy sources such as solar and wind have gained significant popularity due to their scalability and minimal environmental impact. Improved energy storage solutions and highly efficient renewable energy systems are two notable technological advancements that will play a crucial role in addressing these challenges. Numerous nations and regions have made significant progress in their journey towards carbon neutrality by augmenting the proportion of renewable energy in their overall energy consumption [10, 62]. Tracking progress toward carbon neutrality involves monitoring various indicators and metrics, such as greenhouse gas inventories, energy consumption statistics, and emissions reduction objectives. These enable us to closely monitor the outcomes of our shift towards sustainable energy sources. Existing literature confirms the importance of exploring and adopting renewable energy sources that are carbon-free in order to bridge the divide between the promises made and the actual progress towards achieving net-zero CO2 emissions [9, 14, 18, 63–65]. Research suggests that the utilization of green energy and renewable energy sources is of utmost importance in achieving carbon neutrality. Green financing and investment in renewable energy play a crucial role in driving positive change; suggesting the progress of renewable energy and carbon emissions is complex, and improving the carbon efficiency of energy utilization is highly significant [41, 58, 66]. Carbon neutrality can be achieved through the implementation of research and development in environmental and renewable energy. The study of [38] emphasizes the importance of collaboration in achieving carbon neutrality through the implementation of climate change mitigation technology, enhancing energy efficiency, and effectively managing natural resources. Based on the empirical findings offered by [38, 39, 45, 60], it is recommended that China takes proactive measures to encourage investment in green energy and increase the share of renewable energy sources. This will be crucial in achieving long-term carbon neutrality. The use of green energy has the potential to contribute significantly to achieving carbon neutrality. Bölük and Mert [10] discovered that green energy sources, including renewable energy, have the potential to mitigate carbon emissions through their substitution for fossil fuels, which are known to release greenhouse gases. Li, Li [11] found that utilization of renewable energy sources can substantially reduce carbon emissions and enhance environmental quality. To achieve sustainable development, renewable energy consumption is necessary as it helps to reduce carbon emissions, as documented by Yu, Zheng [67]. Bhowmik, Bhowmik [62] ascertained that by substantially reducing carbon dioxide [CO2] emissions, green energy could optimize energy structure and facilitate green development. Raza, Ghasali [58] uncovered that sustainable energy is promoted by green energy, which can aid in carbon emission reduction and carbon neutrality. Sun, Guan [29] found that promoting investments in green energy can result in a more significant proportion of renewable energy sources being utilized and long-term carbon neutrality being achieved. While low-carbon innovation can aid in achieving carbon neutrality through direct reductions in net emissions, it can also hinder pollution from other sources, said by Cai, Zheng [25]. Also, Dahal, Juhola [28] discerned that promoting renewable energy sources has the potential to achieve carbon neutrality, which could function as renewable energy storage systems. Ultimately, the achievement of a sustainable future and the reduction of greenhouse gas emissions hinge upon the crucial link between the utilization of green energy and the attainment of carbon neutrality. The literature extensively discusses the impact of green energy in reducing carbon emissions, along with the policies, technology, and challenges that hinder its widespread adoption. Gaining a deep understanding of this interrelation is crucial in order to make informed assessments and implement impactful measures towards a carbon-neutral future, especially in light of the ongoing challenges posed by climate change. Research gap of the study The research gap identified in this study pertains to understanding the intricate dynamics between green financing, technological innovation in green technology, and their combined impact on economic growth and pollution reduction in the context of the top 25 most polluted countries. While previous studies have emphasized the role of green finance and technology in combating climate change, there is a significant need for a deeper examination of how these elements specifically contribute to economic revitalization, job creation, and innovation in heavily polluted regions. Additionally, the study seeks to bridge the gap in knowledge regarding the specific effects of these factors on reducing pollution and advancing toward carbon neutrality within these nations. This includes a detailed exploration of the policies that can effectively support this transition and how different regions might implement tailored strategies to achieve these goals without compromising economic stability. The research aims to provide comprehensive insights that can guide the development of robust environmental policies and promote sustainable development aligned with global efforts like the Paris Agreement and the United Nations Sustainable Development Goals [SDGs]. Dara and methodology of the study The motivation of the study is to gauge the role of green finance, green technological innovation, and green energy in the process of carbon neutrality in the top 25 CO2-emitting nations for the period 2005–2019. The generalized empirical equation is as follows. [1] In accordance with existing literature, several studies have found that trade openness and financial openness significantly influence the process of either carbon control or augmentation of CO2, for instance [68]. The impact of TO and FO on CO2 emission varies in terms of the economic structure. Thus, the above Eq (1) has been extended with the inclusion of TO and FO. The revised Eq (1) is as follows. [2] Where CN, GF, GTI, GE, TO, and FO represent carbon neutrality, green finance, green technological innovation, green energy, trade openness, and financial openness, for variable definition, see Table 1. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 1. Details of the variables. https://doi.org/10.1371/journal.pone.0308170.t001 Theoretical framework The STIRPAT model, also referred to as the IPAT model familiarized by [69], is a widely recognized theoretical framework employed to assess the environmental consequences of human activities [70, 71]. The acronym stands for "Stochastic Impacts by Regression on Population, Affluence, and Technology." The model proposes that various factors, including population, affluence, and technology, influence the impact on the environment. The mathematical equation of the IPT model is as follows. I represent the environmental impact, which can be assessed through different metrics like carbon emissions, deforestation rates, and water pollution. The population size, denoted as P, represents the count of individuals residing within a specific geographical area. A represents affluence, which denotes the measure of consumption and economic activity per person. T stands for technology, which encompasses the effectiveness and eco-friendliness of the technologies employed in manufacturing and consumption. The equation indicates that the environmental impact is influenced by multiple factors, including population growth, increased consumption as a result of higher affluence, and the efficiency of technology in relation to the environment [72]. Through careful analysis of the interconnections among these factors, researchers are able to gain valuable insights into the underlying causes of environmental change [70]. This knowledge can then be used to formulate effective strategies for promoting sustainable development. The PAT equation is as follows; [3] Following the literature [73], With the log transformation, the Eq (2) can be rewritten in the following manner [4] The STIRPAT model is known for its flexibility and openness, allowing for dynamic adjustments of control factors based on the specific research purpose and needs of this paper. Thus, in this study, models were developed based on the results of GRA to examine the specific factors that contribute to carbon emissions in different provinces. These models focused on the significant factors influencing each nation. Taking into account the explained and explanatory variables, the above equation can be rewritten in the following manner. [5] lnGF measures the level of environmentally-friendly financial activities within a country, covering a range of financial instruments and investments that support programs aimed at promoting environmental sustainability. Based on the analysis, it is expected that the value of β₁ will be positive; that is, there is an expected increase in the adoption of green financing, which will contribute to achieving carbon neutrality, which means that more investments in eco-friendly initiatives will be made, leading to a cleaner and healthier environment. The lnGTI [Green Technical Innovation] variable measures the level of eco-friendly technological progress in a specific country involving the creation and application of technology that is environmentally sustainable. The coefficient β₂ represents the expected change in carbon neutrality when the natural logarithm of green technology innovation increases by one unit. Based on the analysis, it can be inferred that the sign of β₂ is positive. This indicates that an increase in innovation in green technology is expected to result in a higher level of carbon neutrality. lnGE [Green Energy] measures the utilization and progress of eco-friendly energy sources within a country. The sign of β₃ is projected to be positive, as the increased adoption of green energy is expected to lead to a decrease in carbon emissions and a promotion of carbon neutrality. The variable "Trade openness" measures the level of a country’s involvement in international trade. The coefficient β₄ represents the expected impact on carbon neutrality when trade openness increases by one unit, as measured by the natural logarithm. The sign of β₄ is uncertain and depends on the characteristics of trade. Promoting trade openness can contribute to the increased accessibility of energy-efficient products and practices. Nevertheless, there is a possibility that it could increase transportation-related emissions. Therefore, the value of β₄ could have either a positive or negative sign, depending on the specific context of the data. The measure of financial openness, known as lnFO, provides a quantitative assessment of the degree to which a country is open in terms of its financial activities. Financial openness refers to the ease with which money can flow in and out of a country. The coefficient β₅ represents the expected impact on carbon neutrality when there is a one-unit increase in the natural logarithm of financial openness. The anticipated trend of β₅, much like trade openness, is subject to uncertainty and can vary based on the specific circumstances at hand. Increasing financial transparency can encourage environmentally friendly investments. However, it also poses the danger of encouraging speculative or environmentally harmful practices. Therefore, the value of β₅ can have either a positive or negative sign, depending on the specific conditions. Fig 2 exhibited the conceptual framework and empirical nexus of the study. Download: PPT PowerPoint slide PNG larger image TIFF original image Fig 2. Conceptual framework and empirical nexus. https://doi.org/10.1371/journal.pone.0308170.g002 Justification of the study In light of the pressing global issues surrounding climate change and environmental degradation, it is crucial to gain a comprehensive understanding of the complex mechanisms at play in the transition towards carbon neutrality, particularly in heavily polluted countries. Utilizing green financing is crucial for promoting economic growth in countries grappling with environmental issues. Through the promotion of investments in sustainable projects, there exists a substantial opportunity to rejuvenate economies, create employment prospects, and cultivate groundbreaking innovation. Understanding the crucial importance of green finance is vital for policymakers and financial institutions. It enables them to effectively raise funds for initiatives aimed at reducing carbon emissions. In addition, the study delves into the correlation between innovation in green technology and its impact on economic growth. As countries strive to develop and adopt sustainable technology, they frequently gain a significant advantage in the global market, thereby stimulating economic growth. The economic aspect of this research is crucial in addressing the dual challenge of fostering economic growth while also ensuring environmental sustainability. This resource offers valuable insights into the potential economic benefits of transitioning to carbon neutrality alongside the effective reduction of pollution. This study offers valuable insights into the economic advantages of transitioning to a carbon-neutral economy. It highlights the potential for increased investment in green finance and the stimulation of green technological innovation. Green finance has become a crucial tool in the pursuit of carbon neutrality and promoting sustainable economic growth [4]. It focuses on environmentally friendly investments and practices, which are essential for creating a greener future. The scholarly papers under review make a significant contribution to our understanding of the crucial role of substantial investments in green and low-carbon initiatives in the fight against climate change and the pursuit of carbon neutrality. Studies emphasize the importance of robust regulatory frameworks that promote greater access to green finance and the adoption of carbon-neutral practices [14, 64, 74]. It highlights the importance of establishing robust regulatory frameworks and increasing the availability of green finance to address these issues effectively. The transition to a climate-neutral economy offers a significant opportunity for regions undergoing industrial transition to redirect investments from carbon-intensive sectors to cleaner and more modern industries. The specific policies that can facilitate a fair carbon-neutral transition may differ from region to region, as there is no universally applicable pathway. It is crucial to develop comprehensive, long-term strategies for transitioning to a climate-neutral economy. This study has the potential to make a significant contribution to the development of economic policies that are aimed at promoting sustainable development and effectively combating climate change. These policies, such as the Paris Agreement and the Sustainable Development Goals [SDGs], are crucial in addressing the pressing environmental challenges we face today. Investing in a climate agenda and transitioning to a climate-neutral economy can significantly contribute to fostering economic growth. The development of green finance can significantly contribute to the advancement of new energy technologies, thereby playing a crucial role in achieving carbon neutrality goals. Immediate action is imperative to address the concerning levels of pollution observed in the top 25 most polluted countries. Having a comprehensive understanding of the specific impacts of green financing, green technical innovation, and clean energy adoption on pollution reduction is crucial for the development of effective environmental policies. Embracing sustainable energy sources is crucial in addressing carbon emissions, which significantly contribute to climate change and environmental degradation. Examining the role of renewable energy and its impact on the environment can yield valuable insights for developing strategies to mitigate pollution and enhance air and water quality. In addition, the research provides valuable insights into how the advancement of green technology can drive the adoption of sustainable practices and technologies, resulting in tangible and positive effects on the environment. In the face of resource depletion and habitat loss, creativity becomes a vital factor. The research is in line with the United Nations Sustainable Development Goals [SDGs], specifically SDG 7 [Affordable and Clean Energy], SDG 13 [Climate Action], and SDG 15 [Life on Land]. It emphasizes the critical importance of reducing greenhouse gas emissions, tackling pollution, and promoting sustainable practices in countries facing environmental challenges. In addition, this study makes a noteworthy contribution to the global efforts aimed at addressing climate change, as outlined in the Paris Agreement. The research offers valuable insights into the environmental benefits of transitioning to a carbon-neutral economy, such as reduced carbon emissions and improved air quality. The transition to a climate-neutral economy has the potential to create exciting opportunities, leading to increased employment, the emergence of innovative industries, and a more sustainable environment [1]. In order to achieve a climate-neutral economy, it is imperative to undertake a comprehensive and extensive transformation of industrial practices. To achieve a climate-neutral economy by 2050, it will be imperative to gradually phase out or extensively revamp industries that contribute substantial carbon emissions [2]. The transition to a climate-neutral economy presents a valuable opportunity for regions experiencing economic changes to reallocate investments from carbon-intensive sectors to clean and advanced industries [2]. This research has the potential to contribute significantly to the formulation of environmental policies that promote sustainable development and effectively tackle climate change. It aligns with important global initiatives such as the Paris Agreement and the Sustainable Development Goals [SDGs]. The climate agenda has the potential to impact economic development significantly, and the transition to a climate-neutral economy can be achieved without jeopardizing economic growth and prosperity [23]. The advancement of green financing can potentially accelerate the advancement of innovative energy technology, thereby contributing to the achievement of carbon neutrality goals [66]. Estimation strategies Slop of homogeneity and cross-sectional dependency test. Fig 3 displayed the flows of estimation strategies of the study. The Slop Heterogeneity Test [SHT] and the Cross-Sectional Dependency Test [CSD] are important statistical techniques utilized in econometrics and empirical research to assess the validity of assumptions and the reliability of findings in the analysis of panel data. The SHT focuses on examining slope heterogeneity, which pertains to the variability in the relationship between independent factors and the dependent variable across different units or entities in a panel dataset. SHT assists researchers in identifying potential violations of the fundamental assumptions of fixed or random effects models, thereby allowing for more accurate model design. On the other hand, the CSD test assesses whether there is cross-sectional interdependence among individual observations in a panel dataset. Including cross-sectional dependencies is crucial, as neglecting them can lead to biased parameter estimations and inaccurate statistical conclusions in documenting the heterogeneous attributes and cross-sectional dependency following the framework offered by [75–78]. The following equation is to be implemented in deriving the test statistics. [6][7][8][9][10] Download: PPT PowerPoint slide PNG larger image TIFF original image Fig 3. Flows of empirical model execution. https://doi.org/10.1371/journal.pone.0308170.g003 Panel unit root test: CADF and CIPS To analyze the stationary properties, the study employed the CADF [Cross-Sectionally Augmented Dickey-Fuller] test introduced by [79] and the CIPS [Cross-Sectional Implied Pesaran-Shin] test familiarized by [80]. These tests were used to assess whether individual time series in a panel dataset exhibit unit root characteristics. A unit root signifies the existence of a stochastic trend in a time series variable. If not adequately addressed, this can lead to inaccurate regression results. These tests play a crucial role in panel data analysis, especially in the fields of econometrics and finance, as they assist researchers in evaluating the stationarity of variables. This assessment is crucial for guaranteeing the accuracy and dependability of statistical analysis. The CADF test builds upon the traditional Augmented Dickey-Fuller [ADF] unit root test by incorporating cross-sectional dependency, enhancing its analytical capabilities. This is accomplished by enhancing the test with cross-sectional averages of the variables being studied. The CIPS test serves [80] the purpose of addressing cross-sectional dependence by analyzing a collection of common attributes and their potential impact on individual time series. The equation for the CIPS test is formulated in a complex manner, taking into account shared variables and components of error. The generalized function for CIPS is as follows. [11] Critical values for the CADF examination may also be obtained using Monte Carlo simulations or bootstrap methods. [12][13][14][15] CUP-FM, CUP-BC, and DSUR estimation Documenting the coefficients of GF, GTI, and GE cutting-edge tests, introduced by Bai, Kao [81], commonly known as CUP-FM and CUP-BC, has considered which enables to handle the challenges of cross-sectional dependence [CSD], endogeneity, serial correlation, and heteroscedasticity [82–85]. The unique quality of these methods is that they can deal with explanatory variables that are fractionally integrated, allowing for the optimum estimate of continuous parameters, covariance matrices, and factor loadings. Since these techniques successfully deal with CSD difficulties and prevent the omission of nonlinearity and fractional integration worries, they have attracted much attention in the recent literature [86]. Embracing these sophisticated tools, this study pushes the boundaries of empirical analysis, ushering in a new era of insightful findings and groundbreaking discoveries in carbon neutrality research. The following equation is to be executed to unveil the coefficients of explanatory variables. [16] Asymmetric ARDL following the nonlinear framework introduced by [87], the above Eqs [1–3] can be established in the following manner. [17] Where the value of The asymmetric elasticity of GF, GTI, and GE is based on carbon neutrality [CN]. The asymmetric decomposition of GF [], GTI [], and GE [] can be derived through the execution of the following equations. Now, Eq (16) is transformed into asymmetric long-run and short-run coefficient assessment as follows: [18] The D-H causality test [88] is a widely used statistical method in the area of econometrics, which is used in panel data analysis successfully to address inherent biases in cross-sectional and time series investigations. The D-H causality test relies on the premise that an exogenous variable, sometimes referred to as an instrumental variable, exists that has a simultaneous impact on both the dependent and independent variables but not directly. The following equation is to be implemented to document directional causality. [19] The Durbin-Hausman test statistic is then calculated as follows: [20] Rationality and justification of econometric techniques selection are as follows. First, the features of the data under consideration, i.e., the panel data of more than one country at different points in time, are such that it will influence the choice of the second-generation panel unit root tests [CADF and CIPS]. Most importantly, these tests are designed in a manner that they can handle cross-sectional dependence and heteroscedasticity in panel datasets, ensuring that our unit root testing is robust across different cross-sections. In consideration of the above, estimating through CUP-FM [continuously updated fully modified] and CUP-BC techniques help control for cross-sectional dependence and possible endogeneity, a phenomenon that is not unlikely in macroeconomic panel data. Now, a benefit of these methods, of course, is the ease with which consistent and efficient estimates are obtained in the presence of endogenous regressors correlated with panel-specific effects. Efficiency in Estimation: On the basis of the above and the premise that, despite the approach to be followed by our model assuming the estimation of several relations at the same time, it is clear that the related Dynamic Seemingly Unrelated Regression [DSUR] is the appropriate one. This method improves on the standard SUR [Seemingly Unrelated Regression] in the sense that the specifications allow being dynamic, and hence, they capture the time-to-time dynamic more sharply. Second, this study used the Non-linear Autoregressive Distributed Lag [NARDL] model to capture the asymmetric impacts of the variables on carbon neutrality. This is driven by the need to understand how positive and negative shocks in green finance, technological innovation, and adoption of green energy differentially influence the impacts of carbon neutrality targets. NARDL model is most appropriate to our study as it can capture these nonlinearities and provide insights into the dynamics of short-run and long-run relationships. Results and interpretation Results test of CSD and SHT Table 2 exhibited the results of the CSD test following [76] and the slope of the homogeneity test following [77]. Referring to the test statistics of both CSD and SHT, the rejection of the null hypothesis, cross-sectional indecency, and slope of homogeneity, is revealed. Alternatively, it revealed that all the research variables have shared typical dynamics and possess heterogeneous prosperities. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 2. Results of CDS and SHT. https://doi.org/10.1371/journal.pone.0308170.t002 Taking into account the results of the CSD test, the study implemented second-generation panel unit root tests following Pesaran [80], commonly known as CADF and CIPS, which is enabled to address the CD issue. Table 3 reports the results of panel unit root tests in the frame of constant and constant trend. According to test statistics, after the first difference operation, all the test statistics have become statistically significant at a 1% level, suggesting the variables are integrated at I [1]. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 3. Results of panel unit root test: CADF and CIPS test. https://doi.org/10.1371/journal.pone.0308170.t003 Next, panel cointegration tests have been implemented by following Westerlund [89], Pedroni [90], and Kao [91] in assessing the long-run association between carbon neutrality, green finance, green technological innovation, green energy, trade openness, and financial openness. In Reference to test statistics for Table 4, there is a long-run linkage in the empirical nexus. This conclusion is valid in both models with Production–CO2 and Consuptio-CO2. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 4. Results of panel cointegration test. https://doi.org/10.1371/journal.pone.0308170.t004 Model estimation: CUP-FM, CUP-BC, and DSUR without interactive term Table 5 reported the results of explanatory variable coefficients on CO2 in panel A for consumption-based–CO2 and Panel–B for production based CO2, respectively. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 5. Results of CUP-FM, CUP-BC, and DSUR. https://doi.org/10.1371/journal.pone.0308170.t005 For green finance, the study findings documented a contributory effect in achieving carbon neutrality. That is, GF controlled the CO2 emission, which is valued in panel–A [], and Panel–B [] reported output. Study findings postulate that GF plays a vital role in promoting carbon neutrality and addressing the urgent need to combat climate change by driving the transition to a low-carbon economy [40, 92, 93]. GF enables the advancement and implementation of renewable energy sources, energy-efficient technology, and sustainable infrastructure [29]. Additionally, GF utilizes a range of strategies, including green bonds, carbon pricing, and sustainable investment funds, to encourage companies and individuals to adopt sustainable practices and reduce their carbon emissions. The study of Green financing plays a crucial role in addressing climate change by directing funds toward environmentally-friendly projects. This not only helps to reduce greenhouse gas emissions but also promotes the growth of sustainable businesses. Green finance plays a crucial role in achieving carbon neutrality and paving the way for a sustainable and resilient future [41]. The coefficients of green technological innovation [GTI] on CO2 were found to be negative and statistically significant with Consumption-based CO2 [] and production based CO2 [], suggesting GTI amplifies environmental sustainability through the replacement of energy-efficient technology with convention technology having a higher level of energy consumption. Existing literature such as [16, 25, 94] offer a similar line of evidence. Green technology innovation plays a crucial role in promoting carbon neutrality; the immediate effect of green technological innovation on carbon emissions is a reduction in those emissions due to the improved efficiency in energy utilization [95]. In order to achieve carbon neutrality and ensure long-term sustainable development, it is crucial to prioritize innovation in green technology. The potential of recent advancements in eco-friendly technology to reduce greenhouse gas emissions and enhance environmental sustainability has been established in various studies [25, 51, 52]. Business competitiveness can be enhanced while reducing environmental impact through the implementation of innovative green technologies through the provision of green funding, which can serve as an incentive for companies [6]. By offering financial support, firms are motivated to invest in green technology innovation, ultimately contributing to a more sustainable future. Green technology innovation plays a crucial role in promoting carbon neutrality by reducing carbon emissions and fostering sustainable development. The study divulged a positive tie between green energy consumption and carbon neutrality, which is measured by consumption-based CO2 and production-based CO2, which is consistent in all three estimations that are CUP-FM [coefficients of ], CUP-BC [a coefficients of ], and DSUR [a coefficients of ]. Our study findings advocate that transformation to efficient energy sources from conventional energy mix positively supports achieving one of the desired SDGs. A similar line of findings can be found in the study of [57, 63, 96]. Shifting to renewable energy sources may expedite the achievement of carbon neutrality by reducing dependence on fossil fuels, which are a significant catalyst for carbon emissions [97]. Renewable energy’s impact on achieving carbon neutrality has been extensively examined in several studies, particularly in China and OECD member states [11, 23]. Access to green financing increases the likelihood of corporations adopting environmentally-friendly strategies, such as transitioning to renewable energy sources. Green financing may expedite the transfer of resources from environmentally harmful and energy-intensive industries to greener and more efficient sectors. Ultimately, the use of renewable energy is crucial in achieving carbon neutrality by reducing emissions and promoting sustainable long-term development. Model estimation: CUP-FM, CUP-BC, and DSUR interactive term of TO In this section, the empirical assessment has extended with the inclusion of interactive terms in assessing the mediating effects of Trade openness, which is measured by total trade as a % of GDP. Referring to the output displayed in Table 6, the study exposed the interactive term of GF*TO [coefficients of ] and GTI*TO [a coefficients of ] negative and statistically significant at a1%, suggesting trade liberalization supports carbon neutrality through augmentation. Referring to the output displayed in Pane–B, the study suggested that the interaction terms GF*TO, GTI*TO, and GE*TO in the CIP-F model indicate the influence of these factors on CO2 emissions. The CUP-BC model and the DSUR model both have coefficients for these parameters that can be compared. However, the DSUR model stands out with more prominent negative coefficients, suggesting a more significant impact in reducing CO2 emissions. In every model, when the variables involved are multiplied, negative coefficients indicate that there is a decrease in CO2 emissions. The results presented here offer valuable insights into the impact of interaction terms on CO2 emissions across multiple models. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 6. Results of CUP-FM, CUP-BC, and DSUR interactive term of TO. https://doi.org/10.1371/journal.pone.0308170.t006 Model estimation: CUP-FM, CUP-BC, and DSUR interactive term of TO The results of interactive coefficients are displayed in Table 7, reporting the elasticities of interactive terms on consumption–based CO2 emission and for production-based CO2 in panel B. The interaction terms GF*FO, GTI*FO, and GE*FO coefficients in CUP-FM, CUP-BC, and DSUR models provide valuable insights for forecasting consumption-based CO2 emissions. As per the SUCP-FM model, these coefficients indicate that an increase in the multiplication of emissions-related factors [GF, GTI, and GE] and consumption-related factors [FO] results in a reduction in consumption-based CO2 emissions. The CUP-BC model exhibits similar trends with somewhat more significant declines. However, the DSUR model demonstrates even more substantial reductions, highlighting the effectiveness of these interaction terms in reducing consumption-based emissions. Overall, the presence of negative coefficients in all models indicates that increasing the product of these variables has the potential to decrease consumption-based CO2 emissions. DSUR has the most impact among the models. Referring to coefficients displayed in Panel–B, the study unveiled that in all models, negative coefficients indicate that an increase in the combined effect of emissions-related variables [GF, GTI, GE] and the consumption-related factor [FO] results in a decrease in production-based CO2 emissions. The magnitude of this phenomenon varies, with the CUP-BC model exhibiting the most significant declines, followed by the DSUR model and the SUCP-FM model demonstrating more modest reductions in emissions. These results provide valuable insights into the effect of these interaction factors on CO2 emissions in various model situations. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 7. Results of CUP-FM, CUP-BC, and DSUR interactive term of FO. https://doi.org/10.1371/journal.pone.0308170.t007 Nonlinear model estimation Results of the standard Wald test [see Table 8] with the null of symmetry for the log-run and shot-run have unveiled an asymmetric connection between carbon neutrality and explanatory variables in the empirical nexus. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 8. Results of asymmetric estimation. https://doi.org/10.1371/journal.pone.0308170.t008 Referring to results displayed in Panel–A with carbon neutrality measured byconsumption–based CO2 emission. The asymmetric coefficients of GF have revealed negative in sign and statistically in the long run [a coefficient of ] and short-run [a coefficient of ] towards consumption-based CO2 emission, suggesting progressive changes in GF have a significant role in achieving the SDG of carbon neutrality, which is supported by both long-run and short-run assessments. Additionally, for production-based CO2, the asymmetric coefficients have been found beneficial for carbon neutrality. That is, the positive and negative shocks in GF exposed negative statistically significant in the long run [a coefficient of ] and short-run [a coefficient of ] estimation. As a result, the increase in investments and advancements in green finance can play a crucial role in achieving the Sustainable Development Goal [SDG] of carbon neutrality. The findings indicate that incorporating progressive strategies such as promoting environmentally friendly investments and embracing sustainable financial practices can significantly contribute to the decrease in CO2 emissions linked to consumption. In addition, when analyzing the CO2 emissions generated during production, the findings suggest that both positive and negative shocks in GF have a beneficial effect on achieving carbon neutrality. There is a strong correlation between a decrease in emissions and positive changes in GF, both in the short-term and in the long-term. On the other hand, when GF experiences negative changes, it is associated with a more significant decrease in emissions. For GTI, the asymmetric coefficients for consumption and production-based CO2 emission have disclosed negative and statistically significant at a 1% level, which is found in both long-run and short-run investigations. In terms of elasticities, the positive innovations in GIT have produced greater intensity in achieving carbon neutrality in both model estimations. GTI plays a vital role in supporting carbon neutrality by offering sustainable solutions to decrease greenhouse gas emissions. Through the development and implementation of clean energy technologies like solar and wind power, green technological innovation plays a crucial role in replacing fossil fuel-based energy sources. This not only helps reduce carbon emissions but also contributes to a more sustainable future. In addition, the continuous development of energy efficiency technologies allows various sectors, such as industries, buildings, and transportation systems, to function with greater efficiency. This not only reduces energy wastage but also contributes to the reduction of carbon footprints. Green technological innovation also tackles waste management challenges by advocating for recycling, waste reduction, and sustainable waste treatment methods. In general, the progress made in green technology offers the essential resources and approaches to move towards a carbon-neutral future. The asymmetric coefficients of GE for consumption-based CO2 emission and production-based CO2 divulged negatively associated both in the long run and short run, implying that the acceleration of GE in the energy mix fosters the prospects of ensuring environmental sustainability through carbon neutrality. Instead, contraction policies in GE inclusion have had adverse influences on carbon neutrality. D-H casualty test Table 9 (see Fig 4 for graphical projection) displays the results of the directional causality test for both consumption–based CO2 and production-based CO2 A bidirectional causal relationship ["<--->"] was discovered between CN [Consumption-based CO2] and GF [Green financing], as well as between GTI and GE. Both findings indicate a mutual causal link between both variables, implying that alterations in one variable might lead to changes in the other and vice versa. Changes in consumption-based CO2 emissions may affect GF, and vice versa; changes in green finance can also affect consumption-based CO2 emissions. Changes in GF may have an impact on the level of GE, and changes in GE can, in turn, affect GF. Unidirectional causality was observed from CN → GE, FO → CN, TO → CN, GF→TO, GE → GF, FO → GTI, and TO → GE, which implies that changes in the causative variable may result in modifications in the effect variable, but the reverse is not valid. Changes in consumption-based CO2 emissions may influence global economic integration. However, global economic integration does not have a substantial influence on consumption-based CO2 emissions. Download: PPT PowerPoint slide PNG larger image TIFF original image Fig 4. Causality for consumption-based CO2. https://doi.org/10.1371/journal.pone.0308170.g004 Download: PPT PowerPoint slide PNG larger image TIFF original image Table 9. Results of D-H Grange causality test. https://doi.org/10.1371/journal.pone.0308170.t009 Conversely, changes may influence consumption-based CO2 emissions in financial openness, trade openness, green finance, and GTI, see Fig 5 for graphical reporting. Unidirectional causality was observed from CN → GTI, GE → CN, FO → CN, GF → GE, GTI → FO, and GE → TO. This suggests that changes in the causative variable may lead to modifications in the effect variable, but the reverse is not valid. Changes in consumption-based CO2 emissions may influence GF, but GF does not have a substantial influence on consumption-based CO2 emissions. Conversely, consumption-based CO2 emissions may be influenced by changes in GTI, financial openness, GF, and GF, but not vice versa. No significant causal relationship was seen between GF and CN, GTI and GF, GF and FO, GTI and FO, GTI and TO, GE and FO, and TO and FO. These statistical tests indicate that there is no significant causal association between these pairs of variables. Nevertheless, it is crucial to acknowledge that further examination may be necessary in order to comprehend the intricate cause-and-effect connections among these factors completely. In summary, these causality findings offer valuable insights into the connections among the variables examined, shedding light on how alterations in one variable can impact another in the context of consumption-based CO2 emissions, GF, GE, GTI, financial openness, and trade openness. Download: PPT PowerPoint slide PNG larger image TIFF original image Fig 5. Causality for production- based CO2. https://doi.org/10.1371/journal.pone.0308170.g005 Robustness test with MG, PMG, and CS-ARDL Following this, the study implemented MG, PMG, and CS-ARDL for the sake of empirical model estimation and robustness assessment for both models. The results of robustness tests are displayed in Table 10, where Panel–A forconsumption–based CO2 emission and Panel–B for Production-based CO2 emission as a proxy of carbon neutrality. The sign of the coefficients, especially GF, GTI, and GE, have revealed a similar line of connection to carbon neutrality, which is found in both model assessments. Thus, the coefficient estimation with CUP-FM, CUP-BC, and DSUR has been found to be robust in explaining the empirical nexus. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 10. Results of robustness assessment. https://doi.org/10.1371/journal.pone.0308170.t010 Results test of CSD and SHT Table 2 exhibited the results of the CSD test following [76] and the slope of the homogeneity test following [77]. Referring to the test statistics of both CSD and SHT, the rejection of the null hypothesis, cross-sectional indecency, and slope of homogeneity, is revealed. Alternatively, it revealed that all the research variables have shared typical dynamics and possess heterogeneous prosperities. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 2. Results of CDS and SHT. https://doi.org/10.1371/journal.pone.0308170.t002 Taking into account the results of the CSD test, the study implemented second-generation panel unit root tests following Pesaran [80], commonly known as CADF and CIPS, which is enabled to address the CD issue. Table 3 reports the results of panel unit root tests in the frame of constant and constant trend. According to test statistics, after the first difference operation, all the test statistics have become statistically significant at a 1% level, suggesting the variables are integrated at I [1]. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 3. Results of panel unit root test: CADF and CIPS test. https://doi.org/10.1371/journal.pone.0308170.t003 Next, panel cointegration tests have been implemented by following Westerlund [89], Pedroni [90], and Kao [91] in assessing the long-run association between carbon neutrality, green finance, green technological innovation, green energy, trade openness, and financial openness. In Reference to test statistics for Table 4, there is a long-run linkage in the empirical nexus. This conclusion is valid in both models with Production–CO2 and Consuptio-CO2. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 4. Results of panel cointegration test. https://doi.org/10.1371/journal.pone.0308170.t004 Model estimation: CUP-FM, CUP-BC, and DSUR without interactive term Table 5 reported the results of explanatory variable coefficients on CO2 in panel A for consumption-based–CO2 and Panel–B for production based CO2, respectively. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 5. Results of CUP-FM, CUP-BC, and DSUR. https://doi.org/10.1371/journal.pone.0308170.t005 For green finance, the study findings documented a contributory effect in achieving carbon neutrality. That is, GF controlled the CO2 emission, which is valued in panel–A [], and Panel–B [] reported output. Study findings postulate that GF plays a vital role in promoting carbon neutrality and addressing the urgent need to combat climate change by driving the transition to a low-carbon economy [40, 92, 93]. GF enables the advancement and implementation of renewable energy sources, energy-efficient technology, and sustainable infrastructure [29]. Additionally, GF utilizes a range of strategies, including green bonds, carbon pricing, and sustainable investment funds, to encourage companies and individuals to adopt sustainable practices and reduce their carbon emissions. The study of Green financing plays a crucial role in addressing climate change by directing funds toward environmentally-friendly projects. This not only helps to reduce greenhouse gas emissions but also promotes the growth of sustainable businesses. Green finance plays a crucial role in achieving carbon neutrality and paving the way for a sustainable and resilient future [41]. The coefficients of green technological innovation [GTI] on CO2 were found to be negative and statistically significant with Consumption-based CO2 [] and production based CO2 [], suggesting GTI amplifies environmental sustainability through the replacement of energy-efficient technology with convention technology having a higher level of energy consumption. Existing literature such as [16, 25, 94] offer a similar line of evidence. Green technology innovation plays a crucial role in promoting carbon neutrality; the immediate effect of green technological innovation on carbon emissions is a reduction in those emissions due to the improved efficiency in energy utilization [95]. In order to achieve carbon neutrality and ensure long-term sustainable development, it is crucial to prioritize innovation in green technology. The potential of recent advancements in eco-friendly technology to reduce greenhouse gas emissions and enhance environmental sustainability has been established in various studies [25, 51, 52]. Business competitiveness can be enhanced while reducing environmental impact through the implementation of innovative green technologies through the provision of green funding, which can serve as an incentive for companies [6]. By offering financial support, firms are motivated to invest in green technology innovation, ultimately contributing to a more sustainable future. Green technology innovation plays a crucial role in promoting carbon neutrality by reducing carbon emissions and fostering sustainable development. The study divulged a positive tie between green energy consumption and carbon neutrality, which is measured by consumption-based CO2 and production-based CO2, which is consistent in all three estimations that are CUP-FM [coefficients of ], CUP-BC [a coefficients of ], and DSUR [a coefficients of ]. Our study findings advocate that transformation to efficient energy sources from conventional energy mix positively supports achieving one of the desired SDGs. A similar line of findings can be found in the study of [57, 63, 96]. Shifting to renewable energy sources may expedite the achievement of carbon neutrality by reducing dependence on fossil fuels, which are a significant catalyst for carbon emissions [97]. Renewable energy’s impact on achieving carbon neutrality has been extensively examined in several studies, particularly in China and OECD member states [11, 23]. Access to green financing increases the likelihood of corporations adopting environmentally-friendly strategies, such as transitioning to renewable energy sources. Green financing may expedite the transfer of resources from environmentally harmful and energy-intensive industries to greener and more efficient sectors. Ultimately, the use of renewable energy is crucial in achieving carbon neutrality by reducing emissions and promoting sustainable long-term development. Model estimation: CUP-FM, CUP-BC, and DSUR interactive term of TO In this section, the empirical assessment has extended with the inclusion of interactive terms in assessing the mediating effects of Trade openness, which is measured by total trade as a % of GDP. Referring to the output displayed in Table 6, the study exposed the interactive term of GF*TO [coefficients of ] and GTI*TO [a coefficients of ] negative and statistically significant at a1%, suggesting trade liberalization supports carbon neutrality through augmentation. Referring to the output displayed in Pane–B, the study suggested that the interaction terms GF*TO, GTI*TO, and GE*TO in the CIP-F model indicate the influence of these factors on CO2 emissions. The CUP-BC model and the DSUR model both have coefficients for these parameters that can be compared. However, the DSUR model stands out with more prominent negative coefficients, suggesting a more significant impact in reducing CO2 emissions. In every model, when the variables involved are multiplied, negative coefficients indicate that there is a decrease in CO2 emissions. The results presented here offer valuable insights into the impact of interaction terms on CO2 emissions across multiple models. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 6. Results of CUP-FM, CUP-BC, and DSUR interactive term of TO. https://doi.org/10.1371/journal.pone.0308170.t006 Model estimation: CUP-FM, CUP-BC, and DSUR interactive term of TO The results of interactive coefficients are displayed in Table 7, reporting the elasticities of interactive terms on consumption–based CO2 emission and for production-based CO2 in panel B. The interaction terms GF*FO, GTI*FO, and GE*FO coefficients in CUP-FM, CUP-BC, and DSUR models provide valuable insights for forecasting consumption-based CO2 emissions. As per the SUCP-FM model, these coefficients indicate that an increase in the multiplication of emissions-related factors [GF, GTI, and GE] and consumption-related factors [FO] results in a reduction in consumption-based CO2 emissions. The CUP-BC model exhibits similar trends with somewhat more significant declines. However, the DSUR model demonstrates even more substantial reductions, highlighting the effectiveness of these interaction terms in reducing consumption-based emissions. Overall, the presence of negative coefficients in all models indicates that increasing the product of these variables has the potential to decrease consumption-based CO2 emissions. DSUR has the most impact among the models. Referring to coefficients displayed in Panel–B, the study unveiled that in all models, negative coefficients indicate that an increase in the combined effect of emissions-related variables [GF, GTI, GE] and the consumption-related factor [FO] results in a decrease in production-based CO2 emissions. The magnitude of this phenomenon varies, with the CUP-BC model exhibiting the most significant declines, followed by the DSUR model and the SUCP-FM model demonstrating more modest reductions in emissions. These results provide valuable insights into the effect of these interaction factors on CO2 emissions in various model situations. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 7. Results of CUP-FM, CUP-BC, and DSUR interactive term of FO. https://doi.org/10.1371/journal.pone.0308170.t007 Nonlinear model estimation Results of the standard Wald test [see Table 8] with the null of symmetry for the log-run and shot-run have unveiled an asymmetric connection between carbon neutrality and explanatory variables in the empirical nexus. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 8. Results of asymmetric estimation. https://doi.org/10.1371/journal.pone.0308170.t008 Referring to results displayed in Panel–A with carbon neutrality measured byconsumption–based CO2 emission. The asymmetric coefficients of GF have revealed negative in sign and statistically in the long run [a coefficient of ] and short-run [a coefficient of ] towards consumption-based CO2 emission, suggesting progressive changes in GF have a significant role in achieving the SDG of carbon neutrality, which is supported by both long-run and short-run assessments. Additionally, for production-based CO2, the asymmetric coefficients have been found beneficial for carbon neutrality. That is, the positive and negative shocks in GF exposed negative statistically significant in the long run [a coefficient of ] and short-run [a coefficient of ] estimation. As a result, the increase in investments and advancements in green finance can play a crucial role in achieving the Sustainable Development Goal [SDG] of carbon neutrality. The findings indicate that incorporating progressive strategies such as promoting environmentally friendly investments and embracing sustainable financial practices can significantly contribute to the decrease in CO2 emissions linked to consumption. In addition, when analyzing the CO2 emissions generated during production, the findings suggest that both positive and negative shocks in GF have a beneficial effect on achieving carbon neutrality. There is a strong correlation between a decrease in emissions and positive changes in GF, both in the short-term and in the long-term. On the other hand, when GF experiences negative changes, it is associated with a more significant decrease in emissions. For GTI, the asymmetric coefficients for consumption and production-based CO2 emission have disclosed negative and statistically significant at a 1% level, which is found in both long-run and short-run investigations. In terms of elasticities, the positive innovations in GIT have produced greater intensity in achieving carbon neutrality in both model estimations. GTI plays a vital role in supporting carbon neutrality by offering sustainable solutions to decrease greenhouse gas emissions. Through the development and implementation of clean energy technologies like solar and wind power, green technological innovation plays a crucial role in replacing fossil fuel-based energy sources. This not only helps reduce carbon emissions but also contributes to a more sustainable future. In addition, the continuous development of energy efficiency technologies allows various sectors, such as industries, buildings, and transportation systems, to function with greater efficiency. This not only reduces energy wastage but also contributes to the reduction of carbon footprints. Green technological innovation also tackles waste management challenges by advocating for recycling, waste reduction, and sustainable waste treatment methods. In general, the progress made in green technology offers the essential resources and approaches to move towards a carbon-neutral future. The asymmetric coefficients of GE for consumption-based CO2 emission and production-based CO2 divulged negatively associated both in the long run and short run, implying that the acceleration of GE in the energy mix fosters the prospects of ensuring environmental sustainability through carbon neutrality. Instead, contraction policies in GE inclusion have had adverse influences on carbon neutrality. D-H casualty test Table 9 (see Fig 4 for graphical projection) displays the results of the directional causality test for both consumption–based CO2 and production-based CO2 A bidirectional causal relationship ["<--->"] was discovered between CN [Consumption-based CO2] and GF [Green financing], as well as between GTI and GE. Both findings indicate a mutual causal link between both variables, implying that alterations in one variable might lead to changes in the other and vice versa. Changes in consumption-based CO2 emissions may affect GF, and vice versa; changes in green finance can also affect consumption-based CO2 emissions. Changes in GF may have an impact on the level of GE, and changes in GE can, in turn, affect GF. Unidirectional causality was observed from CN → GE, FO → CN, TO → CN, GF→TO, GE → GF, FO → GTI, and TO → GE, which implies that changes in the causative variable may result in modifications in the effect variable, but the reverse is not valid. Changes in consumption-based CO2 emissions may influence global economic integration. However, global economic integration does not have a substantial influence on consumption-based CO2 emissions. Download: PPT PowerPoint slide PNG larger image TIFF original image Fig 4. Causality for consumption-based CO2. https://doi.org/10.1371/journal.pone.0308170.g004 Download: PPT PowerPoint slide PNG larger image TIFF original image Table 9. Results of D-H Grange causality test. https://doi.org/10.1371/journal.pone.0308170.t009 Conversely, changes may influence consumption-based CO2 emissions in financial openness, trade openness, green finance, and GTI, see Fig 5 for graphical reporting. Unidirectional causality was observed from CN → GTI, GE → CN, FO → CN, GF → GE, GTI → FO, and GE → TO. This suggests that changes in the causative variable may lead to modifications in the effect variable, but the reverse is not valid. Changes in consumption-based CO2 emissions may influence GF, but GF does not have a substantial influence on consumption-based CO2 emissions. Conversely, consumption-based CO2 emissions may be influenced by changes in GTI, financial openness, GF, and GF, but not vice versa. No significant causal relationship was seen between GF and CN, GTI and GF, GF and FO, GTI and FO, GTI and TO, GE and FO, and TO and FO. These statistical tests indicate that there is no significant causal association between these pairs of variables. Nevertheless, it is crucial to acknowledge that further examination may be necessary in order to comprehend the intricate cause-and-effect connections among these factors completely. In summary, these causality findings offer valuable insights into the connections among the variables examined, shedding light on how alterations in one variable can impact another in the context of consumption-based CO2 emissions, GF, GE, GTI, financial openness, and trade openness. Download: PPT PowerPoint slide PNG larger image TIFF original image Fig 5. Causality for production- based CO2. https://doi.org/10.1371/journal.pone.0308170.g005 Robustness test with MG, PMG, and CS-ARDL Following this, the study implemented MG, PMG, and CS-ARDL for the sake of empirical model estimation and robustness assessment for both models. The results of robustness tests are displayed in Table 10, where Panel–A forconsumption–based CO2 emission and Panel–B for Production-based CO2 emission as a proxy of carbon neutrality. The sign of the coefficients, especially GF, GTI, and GE, have revealed a similar line of connection to carbon neutrality, which is found in both model assessments. Thus, the coefficient estimation with CUP-FM, CUP-BC, and DSUR has been found to be robust in explaining the empirical nexus. Download: PPT PowerPoint slide PNG larger image TIFF original image Table 10. Results of robustness assessment. https://doi.org/10.1371/journal.pone.0308170.t010 Discussion The coefficients of GF derived through the execution of CUP-FM, CUP-BC and DSUR have unveiled negative statistically significant at a 1% level, suggesting a beneficial effect of GF in achieving the SDG goal of environmental sustainability through carbon neutrality. Our study findings are in line with the existing literature offered bySun, Guan [29], Wang, Li [40], Lu, Farooq [41], Huang, Li [92], Shahbaz, Solarin [93]. Referring to the asymmetric coefficients of GF in both empirical model estimations, the study unveiled asymmetric shocks in GF [] exposed negative and statistically significant in both long-run and short-run horizons, postulating that positive innovation in GF augments the process of carbon neutrality. In contrast, the adverse shocks in GF hinder environmental sustainability, that is, the acceleration of CO2 in the environment [56]. Green financing plays a crucial role in promoting environmental sustainability and achieving carbon neutrality for a number of compelling reasons. Green finance channels investments towards initiatives and initiatives that promote clean and sustainable energy, enhance energy efficiency, and encourage environmentally responsible actions [4, 74, 98]. The study of [56, 99] advocated that GF supports the adoption of clean technology and reduces reliance on fossil fuels by providing financial support to such projects. Consequently, it helps to decrease the amount of greenhouse gas emissions. In addition, GF encourages the adoption of environmentally sustainable practices by providing businesses with incentives, such as green bonds and sustainable investment vehicles, which not only motivates businesses to incorporate eco-friendly practices but also attracts investors who are increasingly interested in sustainable investment opportunities [100]. According to the 2018 report by the Climate Bonds Initiative [CBI], a large number of institutions and governments collectively issued more than $521 billion in green bonds between 2008 and 2018. GF has emerged as an attractive option for both sovereign issuers and fixed-income investors. They have demonstrated their attractiveness in the market. The implementation of the new standard will increase the market’s uniformity and comparability, which will be advantageous for both the entities issuing green bonds and the investors involved. Green bonds have the potential to finance environmental improvement initiatives, which can also be used to finance or refinance a variety of environmentally and socially beneficial initiatives and activities. Bonds serve as a bridge between investment requirements and institutional investors’ growing interest in sustainability-focused investments. These investors are placing a greater emphasis on environmental, social, and governance [ESG] aspects when constructing their asset portfolios. In addition, funding for green initiatives encourages research and promotes advancements in the renewable energy sector. Moreover, GF supports the progress of innovative and improved clean energy technologies by providing financial resources for research and development. As a result, the cost of renewable energy sources has decreased, making them more accessible and competitive when compared to traditional fossil fuels. In addition, green financing has a crucial impact on promoting job growth and driving economic progress. The transition towards a low-carbon economy requires the development of new industries and the expansion of existing ones [6, 59]. Green financing plays a crucial role in supporting the development of environmentally-friendly initiatives. By doing so, it not only fosters the growth of these sectors but also creates job opportunities and drives economic progress. In addition, green financing enhances the capacity of communities and ecosystems to endure and bounce back from various challenges. That means that directing resources towards sustainable infrastructure and climate adaptation projects enables communities to mitigate the impacts of climate change effectively [101]. These activities encompass the implementation of sturdy coastal fortifications, the utilization of sustainable agricultural practices, and the conservation of biodiversity [47]. Study findings, referring to the coefficients derived through the implementation of CUP-FM, CUP-BC, and DSUR, unveiled a negative linkage between GTI and carbon emission in both models, indicating that technological innovation predominantly focusing on energy efficient and environmentally friendly support in managing the CO2 emission. Furthermore, the asymmetric coefficients that are positive and negative shocks in GTI divulged negative and statistically significant in the long-run and short-run assessment, which concluded the beneficial effects of GTI in the process of carbon neutrality. Our study is supported by the existing literature, for instance, Kong [4], Dong, Zhu [16], Feng [47], Shao, Zhong [94], Lin, Liao [100]. The transition to a low-carbon economy is of utmost importance in achieving carbon neutrality. This transition is made possible through the implementation of green technical innovations. Recent developments have been influenced by the use of renewable energy, energy efficiency, and environmentally friendly methods [102]. In order to address the pressing issue of climate change, we must focus on the development and implementation of innovative technologies that can effectively reduce greenhouse gas emissions [14, 52]. Renewable energy exemplifies a state-of-the-art environmentally friendly technology through the advancements in solar, wind, and hydroelectric power generation, which have significantly enhanced their practicality, affordability, and accessibility [103]. The widespread adoption of renewable energy sources as an alternative to fossil fuels has led to a significant decrease in global carbon emissions [60, 61, 102]. Advancing towards a sustainable energy future is greatly supported by the development of state-of-the-art energy storage technologies, ensuring a reliable and uninterrupted provision of renewable energy. Another crucial aspect of eco-friendly technology is the optimization of energy usage; the way to reduce our dependence on fossil fuels and minimize pollution is by enhancing the efficiency of our buildings, transportation systems, and factories. Smart grids, energy-efficient appliances, and eco-friendly construction supplies are among the key innovations necessary to achieve carbon neutrality [104–106]. GTI enables the implementation of sustainable practices across various industries in enabling sustainable land management, which not only helps to curb deforestation but also contributes to increased carbon sequestration [107]. The circular economy is greatly enhanced by advancements in waste management and recycling, which effectively reduce emissions from landfills and optimize the recovery of valuable resources [108]. Advancing carbon neutrality is achievable through the implementation of innovative green technologies that the transition to a low-carbon economy by consistently pushing the boundaries of renewable energy, energy efficiency, and sustainable behaviors [109]. GTI brings about a range of benefits, including new economic possibilities, enhanced energy security, and improved community resilience in the face of climate change. In order to achieve a sustainable and carbon-free future, we must embrace and encourage the advancement of green technology. The nexus between green energy and carbon neutrality has documented positive association, which is revealed in the estimation of CUP-FM, CUP-BC, DSUR, and NARDL; that is, energy mix with green energy sources that are renewable sources has supported environmental sustainability with the management of CO2 emission. Our study findings are in line with existing literature, such as [11, 23, 29, 47, 63, 97, 99]. The contribution of green energy to reducing greenhouse gas emissions and mitigating global warming is crucial in our efforts to achieve carbon neutrality. By transitioning from fossil fuels to renewable energy sources, we have the opportunity to make substantial strides in reducing our carbon footprint and moving closer to a sustainable future. GE is frequently recognized as a vital element in achieving carbon neutrality due to its ability to generate power without emitting carbon dioxide or other greenhouse gases [51, 97]. GE sources such as solar, wind, hydro, and geothermal generate clean energy that does not contribute to the greenhouse effect [9]. GE has the potential to significantly reduce carbon emissions from the energy sector, which is a significant source of global greenhouse gas emissions, in comparison to traditional fossil fuel-based power generation [56]. In recent years, there has been a significant increase in the efficiency and cost-effectiveness of renewable energy technology. As a result, a more significant number of individuals can now benefit from the various green energy alternatives available [4]. The feasibility of transitioning from fossil fuel-based energy systems to clean alternatives is increasing as the capacity for generating renewable energy expands. Switching to renewable energy sources can have a significant impact on global efforts to achieve carbon neutrality by reducing emissions from power plants, heating systems, and vehicles. There is a wide range of GE sources that are readily available, in contrast to fossil fuels, which are limited in supply, costly, and can often be a source of international disputes. Through the strategic diversification of our energy sources and a greater emphasis on renewable energy, we have the opportunity to reduce our reliance on imported fossil fuels and enhance our energy security [85, 110–113], which not only contributes to achieving carbon neutrality but also strengthens the resilience of our energy systems. Investing in GE sources not only helps reduce our carbon footprint but also fosters innovation, attracts financial resources, and drives economic development. Utilizing renewable energy sources is of utmost importance in achieving carbon neutrality [64, 65, 114]. Switching from fossil fuels to renewable energy can have several positive impacts. It can help reduce greenhouse gas emissions, enhance energy security, promote job creation, and foster economic development. When it comes to building a sustainable and resilient future for future generations, it is essential to embrace and invest in green energy. Conclusion and policy suggestions Conclusion The study investigated the impact of Green Finance, Green Technological Innovation, and Green Energy on carbon emissions, utilizing both consumption-based and production-based measurements. Here are the key findings from the research: The research findings highlight the significant contribution of GF in achieving carbon neutrality, as evidenced by its impact on the reduction of CO2 emissions. The findings clearly indicate that GF has a significant impact in promoting carbon neutrality and addressing the urgent requirement to combat climate change. GF supports the advancement and utilization of renewable energy sources, energy-efficient technologies, and sustainable infrastructure. The organization employs a range of strategies, including green bonds and sustainable investment funds, to encourage individuals and organizations to adopt sustainable practices and reduce their carbon footprints. The importance of GF in achieving carbon neutrality and promoting a transition to a low-carbon economy cannot be overstated. Based on the analysis, it was found that GTI has a significant negative impact on carbon emissions, encompassing both consumption-based and production-based emissions. GTI is committed to promoting environmental sustainability by replacing energy-inefficient devices with more energy-efficient alternatives, which helps to reduce energy consumption and minimize our impact on the environment. It plays a crucial role in promoting carbon neutrality by improving energy efficiency and reducing carbon emissions. The results highlight the importance of prioritizing the development of eco-friendly technologies to achieve carbon neutrality and ensure sustainable growth in the future. The study uncovered a clear link between the adoption of sustainable energy sources and the attainment of carbon neutrality, as evaluated through both consumption-based and production-based assessments of CO2 emissions. The adoption of renewable energy sources has been found to expedite the achievement of carbon neutrality by reducing dependence on fossil fuels, a significant driver of carbon emissions. Having access to green funding is crucial in motivating companies to transition towards renewable energy sources. Using renewable energy is essential for achieving carbon neutrality by reducing emissions and promoting long-term sustainable development. The study also examined the asymmetrical coefficients of GF, GTI, and GE in relation to carbon neutrality. The study found that making gradual changes to the global food system plays a crucial role in achieving the Sustainable Development Goal [SDG] of carbon neutrality. Both positive and negative shocks in the global financial system have significant impacts on emissions, highlighting the importance of eco-friendly investments and sustainable financial practices. The research discovered that positive advancements in GTI significantly increase the probability of achieving carbon neutrality, highlighting the vital importance of green technological innovation in replacing energy sources that rely on fossil fuels. Moreover, The study showcased the incorporation of GE into the energy mix as a means to bolster the prospects of attaining environmental sustainability and carbon neutrality. The implementation of contraction measures under GE inclusion has adverse effects on the goal of achieving carbon neutrality, highlighting the importance of preserving and advancing green energy sources. Policy suggestion The research underscores the pivotal role of green financing and technological innovation in achieving carbon neutrality and enhancing environmental sustainability. For the top 25 CO2-emitting countries, including China, the United States, India, and others, it is crucial to adopt effective policy measures to combat climate change. The following policy recommendations are tailored for these nations: 1. Governments should create policies that encourage the flow of funds into sustainable projects. This can be achieved through tax incentives, subsidies, and grants that favor green investments. Legislation could also require financial institutions to acknowledge and manage their environmental impact. Such incentives are essential for fostering a transition to a low-carbon economy. 2. Investing in R&D for green technology is critical. Financial support should be extended to universities, research institutions, and private sectors to promote the development and commercialization of clean energy technologies and energy-efficient solutions. Strategic investments in this area can reduce costs and facilitate the widespread adoption of green technology. 3. Governments need to define clear and ambitious goals for adopting renewable energy. Strategies to increase the renewable share in the energy mix, promote electric vehicle usage, and incentivize renewable energy in heating and cooling systems are vital. Setting clear goals communicates to investors and businesses the importance of investing in sustainable energy alternatives. 4. Addressing climate change effectively requires global cooperation. Participation in international agreements, such as the Paris Agreement, and striving towards shared goals are crucial. Governments should also focus on educational campaigns to raise awareness about the importance of achieving carbon neutrality. By fostering a culture of environmental responsibility, nations can encourage the adoption of sustainable practices. By implementing these comprehensive policies, the leading CO2-emitting nations can accelerate their transition towards a sustainable, low-carbon future. This approach not only promotes ecological sustainability but also ensures a prosperous future for upcoming generations. Conclusion The study investigated the impact of Green Finance, Green Technological Innovation, and Green Energy on carbon emissions, utilizing both consumption-based and production-based measurements. Here are the key findings from the research: The research findings highlight the significant contribution of GF in achieving carbon neutrality, as evidenced by its impact on the reduction of CO2 emissions. The findings clearly indicate that GF has a significant impact in promoting carbon neutrality and addressing the urgent requirement to combat climate change. GF supports the advancement and utilization of renewable energy sources, energy-efficient technologies, and sustainable infrastructure. The organization employs a range of strategies, including green bonds and sustainable investment funds, to encourage individuals and organizations to adopt sustainable practices and reduce their carbon footprints. The importance of GF in achieving carbon neutrality and promoting a transition to a low-carbon economy cannot be overstated. Based on the analysis, it was found that GTI has a significant negative impact on carbon emissions, encompassing both consumption-based and production-based emissions. GTI is committed to promoting environmental sustainability by replacing energy-inefficient devices with more energy-efficient alternatives, which helps to reduce energy consumption and minimize our impact on the environment. It plays a crucial role in promoting carbon neutrality by improving energy efficiency and reducing carbon emissions. The results highlight the importance of prioritizing the development of eco-friendly technologies to achieve carbon neutrality and ensure sustainable growth in the future. The study uncovered a clear link between the adoption of sustainable energy sources and the attainment of carbon neutrality, as evaluated through both consumption-based and production-based assessments of CO2 emissions. The adoption of renewable energy sources has been found to expedite the achievement of carbon neutrality by reducing dependence on fossil fuels, a significant driver of carbon emissions. Having access to green funding is crucial in motivating companies to transition towards renewable energy sources. Using renewable energy is essential for achieving carbon neutrality by reducing emissions and promoting long-term sustainable development. The study also examined the asymmetrical coefficients of GF, GTI, and GE in relation to carbon neutrality. The study found that making gradual changes to the global food system plays a crucial role in achieving the Sustainable Development Goal [SDG] of carbon neutrality. Both positive and negative shocks in the global financial system have significant impacts on emissions, highlighting the importance of eco-friendly investments and sustainable financial practices. The research discovered that positive advancements in GTI significantly increase the probability of achieving carbon neutrality, highlighting the vital importance of green technological innovation in replacing energy sources that rely on fossil fuels. Moreover, The study showcased the incorporation of GE into the energy mix as a means to bolster the prospects of attaining environmental sustainability and carbon neutrality. The implementation of contraction measures under GE inclusion has adverse effects on the goal of achieving carbon neutrality, highlighting the importance of preserving and advancing green energy sources. Policy suggestion The research underscores the pivotal role of green financing and technological innovation in achieving carbon neutrality and enhancing environmental sustainability. For the top 25 CO2-emitting countries, including China, the United States, India, and others, it is crucial to adopt effective policy measures to combat climate change. The following policy recommendations are tailored for these nations: 1. Governments should create policies that encourage the flow of funds into sustainable projects. This can be achieved through tax incentives, subsidies, and grants that favor green investments. Legislation could also require financial institutions to acknowledge and manage their environmental impact. Such incentives are essential for fostering a transition to a low-carbon economy. 2. Investing in R&D for green technology is critical. Financial support should be extended to universities, research institutions, and private sectors to promote the development and commercialization of clean energy technologies and energy-efficient solutions. Strategic investments in this area can reduce costs and facilitate the widespread adoption of green technology. 3. Governments need to define clear and ambitious goals for adopting renewable energy. Strategies to increase the renewable share in the energy mix, promote electric vehicle usage, and incentivize renewable energy in heating and cooling systems are vital. Setting clear goals communicates to investors and businesses the importance of investing in sustainable energy alternatives. 4. Addressing climate change effectively requires global cooperation. Participation in international agreements, such as the Paris Agreement, and striving towards shared goals are crucial. Governments should also focus on educational campaigns to raise awareness about the importance of achieving carbon neutrality. By fostering a culture of environmental responsibility, nations can encourage the adoption of sustainable practices. By implementing these comprehensive policies, the leading CO2-emitting nations can accelerate their transition towards a sustainable, low-carbon future. This approach not only promotes ecological sustainability but also ensures a prosperous future for upcoming generations.
TI - Unveiling the synergy: Green finance, technological innovation, green energy, and carbon neutrality
JO - PLoS ONE
DO - 10.1371/journal.pone.0308170
DA - 2024-10-08
UR - https://www.deepdyve.com/lp/public-library-of-science-plos-journal/unveiling-the-synergy-green-finance-technological-innovation-green-eAwmHK9xby
SP - e0308170
VL - 19
IS - 10
DP - DeepDyve
ER -