Green finance and its role in sustainability in the EU

The aim of this paper is to investigate the role of green finance on sustainability in Germany and the European Union (EU). This aim will be achieved by examining recent data in this field via a panel fixed effect regression model. When comparing Germany and the EU in terms of the value of issued green bonds, the results show that Germany is leading in reducing emissions with several initiatives. One plausible reason could be the higher per-capita income of residents, which enables them to use more energy-efficient technologies than other EU countries. The fixed effect regression results reveal that in Europe, the value of issued green bonds has a negative impact on emissions. Meanwhile, expenditure on environmental protection, fossil fuel subsidies, and environmental tax revenue are counterproductive and do not impact lowering emissions.