Analysing Green Finance and Climate Risk Mitigation Using Global Open Data

Abstract

Green finance is increasingly viewed as an important policy and market-based instrument for supporting low-carbon transition and climate-risk mitigation. This study analyses the relationship between green finance, renewable energy adoption, CO₂ emissions, and projected physical climate risk using global open data for France, India, Indonesia, South Africa, and the United States. The study uses country-level panel data and applies descriptive statistics, trend analysis, correlation analysis, regression modelling, and scenario-based climate-risk comparison. The findings show that green bond issuance varies considerably across countries, while renewable energy consumption is more directly linked with emissions reduction. Specifically, renewable energy consumption has a negative and significant association with CO₂ emissions per capita (B = -0.031, p < 0.01). In contrast, green bond issuance does not show a significant direct relationship with renewable energy consumption or CO₂ emissions in the current sample. The climate-risk results show that warming level is positively and significantly associated with projected physical climate risk (B = 6.870, p < 0.01). However, climate-risk interpretation is limited because only 10 valid climate-risk observations are available. Overall, the study highlights the importance of linking green finance to measurable renewable energy, emissions-reduction, and climate-adaptation outcomes.