GREEN FINANCE AND SUSTAINABLE DEVELOPMENT GOALS IN DEVELOPED ECONOMIES: AN EMPIRICAL ANALYSIS

Abstract

This study investigates the role of green finance in promoting sustainable development across developed economies, with particular emphasis on its contribution to achieving environment- and climate-related Sustainable Development Goals (SDGs). Using a comprehensive analytical framework, the study examines how green financial instruments such as green bonds, sustainable investments, and ESG-oriented financing facilitate the allocation of capital toward environmentally beneficial projects. The findings reveal that green finance plays a significant and positive role in advancing sustainable development in developed countries, where well-established financial markets and supportive regulatory frameworks enhance its effectiveness. Empirical evidence indicates a strong association between green finance and key SDGs, notably SDG 13 (Climate Action), SDG 7 (Affordable and Clean Energy), and SDG 12 (Responsible Consumption and Production). The results suggest that green finance supports the transition toward low-carbon economies by encouraging investments in renewable energy, sustainable infrastructure, eco-friendly manufacturing, and resource-efficient technologies. Moreover, green financial mechanisms contribute to inclusive and resilient economic growth by reducing environmental risks and promoting long-term economic stability. The study also highlights the importance of governance quality, transparency, and policy support in strengthening the link between green finance and sustainable development outcomes. Effective disclosure standards and regulatory incentives are found to enhance investor confidence and improve the impact of green funding.