An Overview of the Evolution in the Research Landscape of Green Finance

1. Introduction

The rapid expansion of the global economy has precipitated numerous environmental challenges, elevating issues related to the environment, climate, and energy to the forefront of discussions on global economic sustainability. Recently, there has been a surge in scholarly interest in the fields of green economics and green finance. Green finance plays a pivotal role in combating climate change by mobilizing capital for projects that reduce greenhouse gas emissions and promote sustainability. Green finance is designed to provide essential financial support to environmentally sustainable projects and enterprises through various financial instruments and products. This concept encompasses two primary objectives: first, it typically favors enterprises characterized by lower energy intensity and reduced pollutant emissions, under the assumption of constant total energy consumption. Second, it aims to enhance and diversify funding sources for firms engaged in green technological innovation. Research into green finance can be traced back to the early 2000s, and to achieve its objectives, a variety of financial products associated with green finance are actively traded in financial markets. For instance, the first weather derivative was traded over-the-counter in the United States [1]. Amid growing environmental challenges, green finance has expanded across multiple domains, forming distinct branches such as “green financing”, “green credit”, “green investment”, “green bonds”, and “green building” [2]. Although “sustainable finance” is often considered a related term, its definition and scope remain debated within the literature. Some studies [2,3] indicate that green finance primarily focuses on environmental protection and climate action, whereas sustainable finance encompasses a broader range of environmental, social, and governance (ESG) objectives.

Climate change emerges as a pivotal issue within green finance research, especially following the alarming rise in sea levels and ozone depletion at the onset of the 21st century. The signing of the Paris Agreement has elevated this concern, symbolizing a global consensus to collaboratively address climate-related challenges. By 2035, leaders anticipate investing approximately USD 53 trillion in international collaboration aimed at reducing greenhouse gas emissions, with the overarching goal of limiting temperature increases to within 2 degrees Celsius [4]. Consequently, carbon emissions have become an urgent issue requiring resolution, simultaneously representing a fervently studied domain within green finance research. Various nations have introduced tailored policies and benchmarks, prompting scholarly interest in understanding the implications of these measures for the global economy and their broader climatic effects. For instance, China has articulated a commitment to peak carbon emissions by 2035 and achieve carbon neutrality by 2050, implementing policies that include the establishment of pilot zones for green finance innovation [5].

An essential aspect of green finance is its interplay with corporate governance. Effective corporate governance structures are crucial for ensuring transparency, accountability, and ethical decision-making in firms that seek to engage in sustainable practices. Research has shown that robust governance mechanisms can drive companies to adopt green finance principles, ultimately leading to better environmental performance [6]. Furthermore, corporate governance frameworks can influence investor confidence, thereby impacting the availability of capital for green projects [7]. By examining the role of governance in green finance, researchers can uncover insights into how policies and organizational practices shape the effectiveness of green financial instruments and the commitment to sustainability within corporations.

Nevertheless, the onset of the COVID-19 pandemic has disrupted this ongoing trajectory in numerous countries [8]. The pandemic has exacerbated the production costs of renewable energy facilities, eroded the profitability of investments in renewable energy, and cast a pall over the global economy, posing a formidable threat to worldwide economic expansion. Moreover, the pandemic has precipitated a curtailment in the mobility of materials, engendering a liquidity shortfall that has compelled numerous enterprises to shutter or curtail operations, thereby substantially impeding economic performance [9]. Currently, the investment landscape within green finance compounds this gap for two primary reasons: the deterioration of the macroeconomic environment, and the withdrawal of supportive government policies. These issues have been intensified by the COVID-19 pandemic [10]. Furthermore, the pandemic has influenced the research agenda in this field. Some studies have established links between the pandemic and the evolution of green finance, suggesting that the pandemic has impeded the advancement of green finance [8,11]. The pandemic has exacerbated the gap through heightened levels of economic policy uncertainty.

Certain literature exclusively delves into specific sub-areas of green finance, such as green investment [12,13,14,15]. A certain percentage of papers have focused more on the carbon trading market [16,17,18,19]. Another sector provides a comprehensive overview of green finance within specific industries, such as a literature review on green finance in the banking sector [10,20,21].

Additionally, several previous reviews of green finance are worth noting. Bhatnagar and Sharma [22] conducted an analysis of the green finance field using selected articles published between 1997 and 2021, with a particular focus on identifying the factors contributing to green finance by reviewing articles from 2018 to February 2021. Debrah et al. [23] provided an overview of the current state and trends in green finance research by conducting a bibliometric analysis of 995 documents, followed by a qualitative systematic review of 60 selected publications, which preliminarily identified key areas within green finance research. Mohanty et al. [24] employed basic bibliometric methods to analyze the academic progress and current state of research in green finance through network analysis. Maria et al. [25] conducted an in-depth analysis of green financing from economic and financial perspectives, utilizing “trend theme analysis” to trace the evolution of the green financing concept. Similarly, Muchiri [26] examined the main clusters and evolutionary trends within the global green finance literature, exploring the transition pathways from carbon-intensive investments to low-carbon green finance. An earlier study [27] used bibliometric analysis to investigate green finance and carbon reduction, covering areas such as green finance performance, risk assessment, and carbon reduction policy design based on a review of 445 publications.

However, these studies are primarily limited to analyzing the literature associated with the broad term “green finance” and do not extend bibliometric analysis into related subfields, such as green financing, green FinTech, green building, and green derivatives. Furthermore, these reviews lack a systematic examination of the various subfields, application areas, and intersections within green finance, and they do not fully explore the role of policy frameworks and emerging fields like green FinTech.

This paper aims to systematically summarize existing research on green finance from a broad perspective that encompasses its various subfields and explores their intersections through both bibliometric and qualitative analyses. Unlike prior studies, this review not only encompasses a broader time frame but also integrates emerging subfields such as green FinTech and the role of policy frameworks in advancing green finance. We meticulously reviewed a substantial body of the literature on green finance, employing a methodological approach that facilitates a comprehensive synthesis of recent studies. This enabled an examination of predominant research themes and emerging trends within the green finance domain. Building on these research trajectories, our objective was to provide relevant insights into the current state of affairs, while striving to discern evolving patterns within the landscape of green finance research.

Specifically, the key innovations of this study include the following:

Integration Across Subfields and Related Domains: This research systematically integrates multiple subfields within green finance, such as green FinTech, green financial products and derivatives, green building, financial reform and innovation, and carbon trading markets. By providing a comprehensive view across these domains, this study reveals multidimensional development trends in green finance, addressing the limitations of the single-domain focus in the existing literature.
Expanded Econometric Analysis and Introduction of Emerging Research Areas: Our study not only covers a longer time span but also introduces emerging areas such as the application of green FinTech and the role of policy frameworks, enriching the scope of green finance research. Building on rigorous econometric analysis, we delve further into case studies from top journals to examine issues related to green bonds, ESG rating uncertainties, and carbon reduction, providing readers with layered insights.
Innovative Analytical Framework Combining Quantitative and Qualitative Approaches: To deepen the analysis, we employ a multi-layered framework that integrates quantitative econometric methods with qualitative case studies. By incorporating cases from top journals within our econometric analysis, we offer a nuanced interpretation of key themes in green finance and their policy implications, offering empirical support valuable to both academia and policymakers.
Guidance at the Intersection of Academic and Policy Practice: This study offers actionable policy recommendations on targeted topics, such as green bonds, ESG rating standardization, and the role of major institutional investors in carbon reduction. The proposed policy frameworks and implementation paths provide practical reference points for future policy formulation and industry practices.

The subsequent sections of this paper are organized as follows: Section 2 provides a concise review of the pertinent literature on green finance, categorized according to relevant keywords. In Section 3, we delineate the intricacies of the bibliometric methodology employed in our analysis. Section 4 elucidates noteworthy findings gleaned from recent research on green finance. Finally, Section 5 presents an overview of the research outcomes and offers policy recommendations derived from this study.

2. Literature Review and Overview of Subfields of Green Finance

In this section, hot topics in green finance are listed and reviewed, including green financing, green financial technology (FinTech), green building, green derivatives, green energy development, green finance reform, and the carbon trading market. Here, we only cover the hot topics in economics and finance. We firstly give a brief review of all topics.

The selection of these subfields is based on their essential roles in advancing green finance and sustainable development. In particular, green FinTech and green derivatives, as rapidly evolving areas, have become integral to green finance research and practice. Through innovative financial instruments and technological advancements, they have driven the evolution of green investment and financing models.

While green building and green energy may not strictly align with the core definition of green finance, they are closely related. Green building contributes significantly to achieving sustainable construction and urbanization goals, while green energy is essential for transitioning energy structures and reducing carbon emissions. Although both green building and green energy operate as independent industries, they rely heavily on green finance, especially in terms of capital needs. Green finance, through instruments such as green bonds and green funds, can provide the critical capital support required by these fields. Therefore, we include green building and green energy within our research framework, discussing them as application areas of green finance.

2.1. Green Financing

Green financing refers to the financial support and instruments dedicated to funding environmentally sustainable projects, with the core objective of promoting sustainable resource use, reducing carbon emissions, and improving environmental quality [28]. Green financing plays a critical role in facilitating high-quality economic development [29,30]. Iqbal, Fatima [31] argue that the advancement of green finance represents a viable strategy for addressing environmental challenges. As a cornerstone of the low-carbon economy, green finance embodies the financial sector’s integration of environmental considerations into investment decision-making processes [32,33]. Within the framework of green finance policies, green financing is indispensable due to the significant deficit in green investment [34]. Previous scholarship highlights the persistent dissonance between environmental and financial regulations as a key factor contributing to the green finance gap [35]. Two critical considerations arise: the macroeconomic environment, and the impact of national policies on green financing risks and investments.

Numerous studies have investigated the disparity of the green finance gap. Desalegn [10] conduct a comprehensive analysis of various facets, instruments, and metrics of green finance, revealing that a lack of financing creates a gap in green investment, primarily due to restrictive regulatory policies. Meanwhile, Yu et al. [36] scrutinize Chinese listed companies from 2001 to 2017, examining the relationship between constraints in green financing and green innovation, as well as how relevant policies mitigate the effects of corporate financing constraints on green innovation. Their findings indicate that tailored banking regulatory policies could incentivize banks to extend credit to low-carbon initiatives, thereby alleviating the green investment gap. Some studies propose differentiating capital adequacy ratio provisions in bank regulations based on loan types [37].

In contrast to certain developed nations where green bonds serve as the primary financing channel, in China, government subsidies represent the foremost external financing avenue for enterprises, addressing the financing challenges associated with corporate green innovation [38,39]. Additional research demonstrates that while these policies can effectively alleviate constraints on green financing, such financing tends to favor state-owned enterprises, posing challenges for private sector uptake [36]. The difficulty of accessing green financing in China’s economically advanced eastern regions stands in stark contrast to conditions in less developed areas [40]. Taghizadeh-Hesary [41] propose a solution to this financing conundrum by addressing the protracted nature of green investment pressures through non-bank entities, such as insurance companies, thereby alleviating enterprises’ financing challenges. Listed companies find credit accessibility facilitated by banks, which serve as primary conduits for government subsidies [42]. Andersen [43] indicates that heightened public awareness of green financing contributes to mitigating issues associated with carbon emissions. Within the ASEAN (Association of Southeast Asian Nations), related studies explore the role of green investment in promoting the economic development of member countries [21].

2.2. Green FinTech

Green financial technology (green FinTech) encompasses the use of financial technologies—such as blockchain, big data, artificial intelligence, and the Internet of Things—to enhance the transparency and efficiency of green finance projects. By leveraging these technologies, green FinTech aims to foster sustainable development and environmental protection through advanced financial platforms and tools [44]. Green FinTech refers to the integration of sustainable practices and technology within the financial sector through technological innovations [34]. This innovative approach addresses environmental challenges and optimizes resource utilization to achieve sustainability objectives [45,46]. Numerous studies indicate that the advancement of green FinTech has significantly propelled the development of the green economy [47]. Nenavath [48] employs the Synthetic Difference-in-Differences (SDID) model to illustrate a substantial correlation between green finance policies and positive environmental outcomes. Although conclusive evidence linking FinTech growth to a notable reduction in CO₂ emissions remains elusive, the expansion of green FinTech distinctly benefits companies engaged in environmental projects, thereby contributing to environmental preservation [49].

Enhancing energy efficiency for sustainable development is another critical focus within the realm of green FinTech. Yu et al. [50] utilize Data Envelopment Analysis (DEA) to investigate the effects of sustainable investment and national public expenditure on energy efficiency and green economic development in both advanced and emerging economies. The progress in green energy technology can significantly enhance energy efficiency, facilitating the objectives of sustainable development. While private enterprises often play a pivotal role in fostering green innovation, the implementation of appropriate oversight mechanisms is deemed essential [51]. Furthermore, the evolution of green FinTech is intricately linked to advancements in other relevant technologies [52]. Wang, Tsai [53] explore the relationship between finance and the environment, highlighting the positive ecological impacts of the Internet agribusiness.

2.3. Green Financial Products and Derivatives

Green derivatives are financial instruments linked to environmental and climate risks, often used to hedge against the uncertainties arising from environmental policies and climate change. These derivatives play a key role in managing the financial risks associated with shifting regulatory landscapes and environmental challenges [54]. A plethora of green financial products and derivatives have emerged, including green bonds, green loans, environmental, social, and governance (ESG) funds, weather derivatives, green deposits, green mortgages, and sustainable responsible exchange-traded funds (ETFs) or mutual funds. Scholarship in this domain predominantly focuses on two key dimensions.

First, significant attention is devoted to the development of customized green products and solutions that address the inherent risks and challenges associated with advancing green finance [55]. Climate volatility poses a formidable threat to the sustained growth of green finance [56]. In response to climate change events in the trading market, investors have demonstrated a notable inclination to purchase ETFs, thereby channeling private investment into the green finance sector [57]. Research on weather derivatives suggests that these instruments can serve as a hedge against climate change risks, substantially mitigating investor exposure and ensuring stable returns [58]. Weather derivatives are financial instruments whose valuation depends on fluctuations in weather patterns, including variables such as temperature, precipitation, humidity, and wind speed [5]. Given the increasing prominence of renewable energy, weather derivatives have emerged as a focal point for scholars in green finance. Härdle et al. [59] utilize German wind power as a case study to illustrate the potential of wind power derivatives, proposing the design of corresponding instruments to ensure stable returns. Building on this foundation, Tong et al. [1] focus on modeling temperature and weather derivatives based on a time-varying Ornstein–Uhlenbeck (OU) process, presenting an innovative TC-OU model that enhances the capture of essential temperature data. While weather derivatives primarily aim at risk mitigation, green power products exhibit heightened environmental awareness regarding overall pollution. Nevertheless, the premium associated with green power products often fails to deter consumers from choosing conventional alternatives [60].

The growing emphasis on corporate social responsibility has led to a notable expansion of ecological, social, and governance (ESG) factors [61,62]. In contrast, research on green products and their derivatives predominantly focuses on addressing the financial challenges inherent in green innovation and the advancement of green finance. Some studies indicate that providing green loans to enterprises in the form of government subsidies can effectively promote green innovation and facilitate environmental conservation [63]. Green bonds serve to alleviate the financial pressures associated with green project funding, contributing to the formation of private capital pools for qualified green project financing [48,64]. Evidence suggests a close relationship between green bonds and the stock market, with stock prices positively responding to green bond issuances. Similarly, the distribution of green bonds has significantly increased equity liquidity [65,66]. As the green bond market in developing countries remains nascent, high transaction costs stemming from inadequate green bond management have hindered its growth [67]. Ning, Cherian [68] investigate the role of green bond financing in energy investment and economic growth, illustrating how banks can serve as pivotal financiers of energy projects, thereby alleviating barriers to green finance and sustainable development through investment in green bonds.

Moreover, various green finance products have been shown to address developmental challenges within the green finance domain. For instance, green mortgages are instrumental in fostering the transition to energy-efficient buildings, with energy efficiency emerging as a significant predictor of mortgage delinquency [69]. Green insurance functions as an institutional innovation mechanism intended to mitigate and transfer environmental risks [70]. Chen, Ning [71] investigated the influence of green insurance on enterprises’ decisions regarding overseas investment, resulting in a substantial reduction in enterprises’ foreign direct investment. However, comprehensive research on green deposits remains scarce for reference, as does research on carbon credits, which will be examined separately in the subsequent discussion.

2.4. Green Building

Green building, also referred to as sustainable building or eco-construction, represents a construction paradigm situated within the domain of green finance [72]. Green building pertains to construction practices focused on reducing resource consumption, minimizing waste emissions, and enhancing indoor environmental quality throughout a building’s lifecycle [73]. This approach involves the construction of buildings by enterprises utilizing renewable energy resources, supported by green FinTech and innovative financing mechanisms. Notably, green buildings can lead to substantial reductions in life cycle costs associated with construction [74]. Research indicates that the construction, operation, and demolition of buildings contribute significantly to carbon emissions, thereby underscoring the necessity of advancing green finance initiatives [75]. In recent years, green investment has experienced rapid growth across various sectors, particularly in green buildings and clean energy [76]. Olubunmi, Xia [77] emphasize the importance of green incentives, identifying both external and internal incentives as effective drivers, with governmental non-financial incentives being particularly impactful. However, the substantial costs associated with green building initiatives have impeded the advancement of financing models in this sector, prompting concerted efforts from governments to address these challenges. Such efforts primarily focus on green procurement policies and the promotion of zero-emission buildings, among other initiatives [78,79]. China possesses considerable potential for the proliferation of green buildings, and yet a scarcity of green-certified structures persists [80]. The advancement of green building development in the country could be facilitated through enterprise qualification assessments and government demand-side subsidies [81]. Ultimately, the evolution of green buildings has been significantly shaped by favorable economic returns, a coherent regulatory framework, and robust collaboration among stakeholders.

2.5. Green Energy Development

Green energy development involves the development and promotion of renewable and low-carbon energy technologies as alternatives to traditional fossil fuels, aiming to reduce greenhouse gas emissions [82]. This domain encompasses not only technology research and energy project development but also includes policy support and financial investments aimed at accelerating the green transition of the energy sector. The evolution of green energy constitutes an earlier and more contentious domain within green finance, serving as a crucial pathway for transforming both green finance and industrial reform [83]. Enhancing energy efficiency and curbing energy demand are pervasive challenges faced by nations worldwide [84]. Investment in green projects is vital for improving energy efficiency, with a particular emphasis on green efficiency initiatives [12,85]. Li, Dong [86] examined the interplay between green economic growth, green finance, and green energy (3G) in China, revealing a positive correlation between green economic growth and the development of green energy, with varying impacts across different types of green energy. Madaleno et al. [87] assert that green financial investments align with the demand for clean energy, highlighting the necessity of formulating relevant policies to finance green technologies and achieve energy transition and sustainable development objectives. The advancement of green energy is intricately linked to issues of pollution and carbon finance. Rasoulinezhad et al. [15] employ stochastic impact analysis to demonstrate that green energy significantly enhances energy advantages and promotes renewable energy development, with green bonds emerging as an effective mechanism to support green energy projects and substantially reduce carbon dioxide emissions. Zhong et al. [14] argues that digital finance can facilitate the establishment of green industrial frameworks and directly mitigate air and water pollution, demonstrating a measurable impact on sulfur dioxide and chemical oxygen demand (COD) emissions.

2.6. Green Finance Reform and Innovation

Green finance reform refers to adjustments within the financial system—through policy, regulation, and innovation—designed to support the transition to a low-carbon economy and the achievement of sustainable development goals [88]. Green finance reform and innovation are primarily aimed at fostering environmental protection, promoting sustainable development, and addressing associated challenges. This initiative introduces novel concepts, frameworks, and products that enhance environmental preservation while simultaneously generating economic benefits [53]. It represents a proactive response to the pressing challenges faced by green finance in today’s landscape, evolving further across various nations and often intersecting with digital finance [89,90]. In an era where environmental imperatives are paramount, nations have instituted comprehensive green finance standards. In China, several pilot zones for green finance reform and innovation have been established to facilitate the advancement of green finance [88]. Hu, Li [29] empirically examined the impact of these green finance pilot zones on the long-term value of green enterprises, utilizing data from A-share listed companies to assess capital market effects. Cui et al. [36] corroborate that innovative green finance policies provide both theoretical foundations and empirical support for policies on regional green innovation. Furthermore, green finance reform policies contribute significantly to carbon reduction, enhancing the effectiveness of carbon emission mitigation by increasing the technological innovation quotient within green finance. Nedopil et al. [91] employed textual analysis and statistical methodologies to analyze 84 green finance standards published between 1998 and 2020, proposing three models of green finance standards: input, output, and evolved. Other studies indicate that non-governmental entities are poised to play a more prominent role in market-driven economies, whereas in government-centric economies such as China, the government acts as the principal agent [92,93].

Innovation within green finance extends to the development of other financial instruments. The impact of green insurance on enterprises’ foreign direct investment varies by region, with more market-oriented regions exhibiting greater resilience, while investment appears weaker in less market-oriented areas [94]. Digital finance offers numerous advantages in promoting green technology innovation (GTI), which traditional finance lacks. Recent research has explored the impact of digital finance on China’s energy-environmental performance, revealing that digital finance significantly enhances this performance through innovative green finance practices [95,96]. Wu et al. [90] utilized the spatial Durbin model to demonstrate that green finance can effectively regulate the impact of GTI, thereby promoting regional advancements in GTI.

2.7. Carbon Trading Market

The carbon trading market is a market-based mechanism for trading carbon emission rights, designed to incentivize companies to reduce greenhouse gas emissions through price-based signals that encourage efficient carbon management [97]. The global greenhouse effect has elicited considerable attention from researchers within the field of green finance, particularly regarding the carbon trading market and its implications for carbon emissions and emissions trading systems (ETSs). Carbon pricing has emerged as a recognized and effective mechanism for addressing the environmental crisis, constituting a prominent area of investigation in green finance [91,98]. Khan, Usman [99] illustrate that carbon pricing can significantly enhance air quality indicators and reduce the incidence of related diseases on a global scale, thereby contributing to the alleviation of environmental degradation and fostering healthcare reforms across diverse nations [100]. In contrast to the green bond market, which provides transitional funding for green projects, the carbon futures market is primarily designed to hedge risks associated with carbon trading [67]. Ren, Li [101] employed a two-dimensional quantile model to empirically analyze the asymmetric effects of carbon futures, revealing that under extreme conditions in both markets, the price of carbon futures significantly impacts the green bond index.

Additionally, agricultural production in nations with developed agricultural sectors substantially contributes to carbon emissions [102]. This situation necessitates the adoption of relevant energy technologies and the implementation of innovative energy conservation and emissions reduction measures [103,104,105]. Xiong and Sun [106] analyzed the collective impact of green finance on CO₂ emissions using fuzzy set qualitative comparative analysis (fsQCA), delineating a pragmatic pathway towards achieving low-carbon outcomes. In the agricultural sector, characterized by relatively low short-term investment returns yet offering long-term stability, addressing the green financing gap through the issuance of derivatives is deemed imperative [36,107]. In China, carbon trading stands as a pivotal policy in combating climate change, with several studies indicating the efficacy of the nation’s carbon trading scheme in effectively incentivizing carbon reduction efforts [35]. The impact of this policy stems more from government intervention than from spontaneous market mechanisms [108]. Pan, Pu [109] demonstrate that government participation regulates the total factor productivity of enterprises, yielding sustained positive effects in the long term. However, other studies suggest that carbon regulation policies may, in certain instances, diminish the production performance of enterprises, as excessive reliance on credit financing can lead to inefficient investments [4]. Therefore, the new approach emphasizes high carbon trading prices and significant price fluctuations. These measures promote enterprise innovation, encouraging more effective carbon emission reduction under the healthy development of enterprises [110].

2.8. Recent Advances in Green Finance Research in Leading Journals over the Past Three Years

Driven by the global urgency around climate change and sustainable development, green finance has received significant attention in top-tier journals, with key research areas focusing on green bonds, ESG rating uncertainty, the role of institutional investors in carbon reduction, and risk management for green assets.

First, studies have underscored the importance of green bonds in enhancing corporate environmental performance and attracting green investors. The issuance of green bonds is often accompanied by improved environmental ratings and reduced carbon emissions, indicating that green bonds not only provide funding but also serve as a signal of environmental commitment that attracts capital [111]. Second, research on ESG rating uncertainty reveals that inconsistencies in ESG ratings can lead to fluctuations in market risk premiums and weaken the effectiveness of traditional asset pricing models [112,113]. This finding highlights the need for investors to consider the risks associated with rating system discrepancies when selecting green finance products. Additionally, studies on global asset management giants, such as BlackRock and Vanguard, show that shareholder interventions by these large institutions in carbon-intensive industries have had a positive impact on corporate carbon reduction efforts [114]. This demonstrates the influential role that major institutional investors play in advancing global carbon reduction initiatives. The investment returns on green assets have also attracted substantial interest. Research indicates the presence of a “green premium”, whereby green assets, despite offering relatively lower returns, display stable performance due to investors’ value-driven preferences. For example, Germany’s green bonds, though yielding lower returns than traditional assets, have outperformed non-green bonds in the market as environmental awareness has grown [115]. Finally, frontier models of responsible investment efficiency have developed ESG-efficiency frameworks for constructing optimal portfolios that balance sustainability with returns, providing theoretical support for sustainable investment strategies [116].

Together, these studies illustrate the multidimensional advancements in green finance, offering empirical evidence and theoretical frameworks to guide policymakers and investors in addressing climate change.

3. Methodology

3.1. Source, Research Protocol, and Literature Screening Process

This study followed the rigorous protocols of a systematic literature review to ensure methodological thoroughness and the reproducibility of the results. The literature screening process was completed according to the following steps:

3.1.1. Literature Search Strategy

To enhance the credibility of our study, we sourced our research data from the Web of Science Core Collection, an academic repository integrating information from over 18,000 scholarly journals across disciplines, including natural sciences, engineering, technology, biomedicine, social sciences, arts, and humanities. Recognized as an authoritative source for academic data in finance, Web of Science provides a user-friendly interface with various retrieval methods, enabling efficient content selection, result analysis, and data export.

To ensure comprehensive coverage of core research in green finance, we applied a systematic literature search in Web of Science using the following keywords: “green finance”, “green insurance”, “green securities”, and “green investment”. Our search focused on studies published between 2014 and 2023 to capture recent research developments. The included document types were primarily academic journal articles and conference papers, restricted to original research and review articles.

To further ensure data comprehensiveness, we conducted supplementary searches in other academic databases, including PubMed, ABI/Inform, and JSTOR (see Supplementary Materials). However, these additional searches did not yield new or supplementary data, reinforcing the reliability of our initial results. Ultimately, we imported 27,885 initial records from these databases.

3.1.2. Literature Screening Process

We conducted the literature screening according to PRISMA guidelines, ensuring clarity and standardization in the selection process. The screening process comprised the following stages (see Figure 1):

Deduplication: Automated tools filtered out 12,398 duplicate records from the initial 27,885 records, resulting in 15,487 unique studies for further screening.

Inclusion Criteria: Following our research design, we strictly selected only high-citation, English-language publications focusing on green and sustainable finance topics. These studies proceeded to full-text retrieval and further analysis.

Exclusion Criteria: Of the 142 studies in the final evaluation stage, we excluded 1 conference abstract. Thus, the final selection comprised 141 studies that met all screening criteria.

3.1.3. Inclusion and Exclusion Criteria

During screening, we applied the following criteria:

Inclusion: High-citation, English-language journal articles or conference papers addressing core topics in green finance.

Exclusion: Editorials, book reviews, and conference abstracts lacking peer review were excluded from consideration.

Through this systematic screening, we retained 15,487 studies for the bibliometric analysis and selected 112 studies as primary sources for in-depth analysis. Each step of the research protocol and screening process is presented in the PRISMA flowchart (Figure 1), which demonstrates that we ensured transparency and rigor in our inclusion and exclusion procedures.

3.2. Bibliometric Analysis

The bibliometric analysis methodology employed in this study is grounded in the foundational work of [117], which aimed to facilitate the quantitative analysis of the literature. To gain precise control over the development direction and emerging fields within green finance, we also adopted the co-citation method proposed by [118]. This approach seeks to identify emerging trends and focal areas within an extensive corpus of articles by establishing co-citation relationships between two articles cited by the same body of literature, indicating content similarities.

For our analysis, we utilized CiteSpace version 6.2 R2 for co-citation clustering and burst analysis, integrating algorithms for text processing, complex networks, and burst detection. The reliability of this software and its algorithms has been substantiated by [119], and it has been widely used by researchers for bibliometric analysis. CiteSpace streamlines cluster analysis and temporal research through its Java application, simplifying the modeling and visualization processes. This methodological framework significantly mitigates the complexities associated with network visualization, thereby facilitating the identification of practical implications, challenges, and future research opportunities. In co-citation cluster analysis, this visualization technique effectively identifies frequently co-cited articles, authors, and journals, thereby strengthening the robustness of our conclusions. Notably, in the analysis of landmark nodes, each node represents an article, while the connections between nodes signify co-citation relationships.

The specific bibliometric methodology employed in this study includes the following parameters: Top 50 per slice, Link Retention Factor (LRF) 3.0, L/N = 10, LBY = 5, and e = 1.0. The “Top 50 per slice” criterion is a stratified selection method in bibliometric analysis, segmenting the study period into several slices, within which the 50 most cited articles are selected. This approach aims to identify the most influential works in each time slice. The LRF of 3.0 is used to manage the number of edges in the network, indicating that the network will retain three times the original links, thus preserving a greater number of relationships and facilitating the construction of a comprehensive knowledge map. The ratio L/N = 10, where L denotes the number of citations per article and N represents the total number of cited articles, ensures that only articles cited in at least 10% of the total citations are retained, filtering for the most impactful literature. The parameter LBY = 5 specifies that only literature published at least five years is considered, thereby excluding recently published articles that may not have gained traction, thus ensuring the stability and reliability of the analysis. Lastly, the parameter e = 1.0 is utilized to maintain the granularity of the network, ensuring that connectivity between each node and its associated nodes is preserved, allowing each node an equal opportunity for participation in subsequent clustering and analysis.

The research process unfolds in two main stages: first, a comprehensive analysis of selected publications, encompassing articles per year, authors’ country of origin, and institutional cooperation networks; second, cluster analysis that identifies key markers in the field through network classification and clustering to uncover the latest developmental trends. This includes co-citation analysis, landmark node analysis, co-cited author analysis, and analysis of references with citation bursts.

The citation burst analysis, central to this study, is a bibliometric technique designed to detect papers that have experienced a sudden surge in citations within a specific time frame. This method is rooted in Kleinberg’s burst detection algorithm, which is widely used for identifying temporal trends in data streams. The strength of citation burst analysis lies in its ability to pinpoint moments of paradigm shifts in research. This makes it particularly valuable for green finance, where rapid policy and market responses are often tied to groundbreaking studies. Understanding these bursts allows policymakers and researchers to trace the origins of influential ideas and adapt strategies accordingly.

For example, in our study on green finance, the citation burst analysis identified several key papers that marked a turning point in academic interest towards sustainability transitions and policy-driven green innovations. By detecting these bursts, we were able to map how specific findings catalyzed broader discussions in the field.

4. Descriptive Statistical Analysis

4.1. Selected Publication Analysis

4.1.1. Articles per Year

Figure 2 illustrates the trajectory of publication growth over the decade from 2014 to 2023. In recent years, the increasing emphasis on green and low-carbon initiatives has spurred a notable surge in scholarly interest within this domain. Green finance, in particular, has emerged as a central focus, attracting heightened attention from researchers. Notably, the modest growth in publication numbers prior to 2016 suggests that this nascent research field initially garnered limited recognition. However, starting in 2017, there has been an exponential increase in the volume of papers addressing green finance. This surge is largely attributable to the successive implementation of green financing policies by various countries following the Paris Agreement. By 2022, the number of papers published on green finance reached an impressive 3932, as reported by the Web of Science. This growth trajectory exceeds even the expected rates of exponential growth. These statistics compel us to assert that green finance is exerting an unprecedented impact on contemporary society. Although the number of articles published in 2023 shows a downward trend, potentially influenced by practical factors such as the Russia–Ukraine conflict, the volume remains significant, reflecting ongoing scholarly interest and engagement in the field.

4.1.2. Authors’ Countries of Origin

As an emerging field of study, green finance has attracted considerable attention from scholars across the globe. An analysis of the countries and regions significantly contributing to this discipline provides valuable insights into its development. Figure 3 summarizes the national affiliations of contributing authors. Notably, China has experienced a rapid increase in research output in recent years, surpassing contributions from predominantly developed countries such as the United States and those in Europe [120]. Table 1 details the total number of publications from countries with substantial output in green finance research. Specifically, China has produced 3254 papers over the past decade, accounting for 36.58% of the total output, thereby exceeding the United States (736 papers) and the United Kingdom (428 papers). Several studies corroborate this observation [22,23,24]. This surge in Chinese publications can be attributed to the country’s prioritization of carbon peak and carbon neutrality goals, along with a growing interest among Chinese scholars driven by relevant policy initiatives introduced in recent years.

As presented in Table 1, China not only leads in the total number of national policies supporting green finance but also enacted a significant number of related policies between 2014 and 2018, outpacing other leading nations in the field. This policy-driven shift has facilitated a higher volume of publications by Chinese researchers compared to their counterparts in the United States. However, it is noteworthy that countries such as the United States and the United Kingdom have introduced a considerable number of green finance-related policies since 2019, which may catalyze further advancements in green finance research within these nations.

Moreover, a potential limitation of the bibliometric analysis employed in this study warrants acknowledgment. Papers that exhibit high levels of innovation but possess lower citation counts may be overlooked, which could skew the identification of research hotspots toward more widely cited works that do not necessarily reflect groundbreaking contributions. Therefore, while China’s dominance in green finance research is evident in terms of publication volume, further investigation is required to ascertain whether this dominance translates into a leadership position concerning research impact and innovation within the field.

4.1.3. Cooperation Network of Institutions

Table 2 presents the top ten institutions with the highest publication counts in green finance, notably revealing a preponderance of affiliations with Chinese research entities, likely influenced by relevant policy decisions in China. An analysis of the institutional collaboration networks (Figure 4) elucidates the reasons for these institutions’ prominence in publication output. Wuhan University, the Chinese Academy of Sciences, Jiangsu University, and Beijing University of Technology have engaged in collaborative research efforts. Such collaborations among domestic institutions enhance the seamless exchange of knowledge, thereby fostering a positive feedback loop in research within this domain. This collaborative synergy among institutions has been instrumental in advancing green finance research, contributing to the overall development and evolution of the field.

4.2. Co-Citation Analysis

To elucidate the co-citation relationships among papers on green finance, we employed CiteSpace for the clustering of cited literature, in Figure 5 and Table 3. This software organizes cited works by topic, generating cluster labels through automatic text analysis of titles, keywords, and abstracts from articles cited by members of each cluster. Consequently, these clustering labels reveal the focal areas within our study of green finance. Three primary clusters have been identified, corresponding to the top themes: green innovation, financial development, and green buildings, which consist of 41, 28, and 24 cluster members, respectively. The annual labels associated with these clusters are 2016 for green innovation, and 2015 for both financial development and green buildings, indicating the approximate years when these research focuses emerged.

Cluster #0 green innovation

The largest cluster, designated Cluster #0, comprises 41 members, with a significant increase noted in 2016. The primary articles cited within this cluster include works by [121], which predominantly explore topics intrinsic to green finance rather than peripheral concepts such as green buildings. These articles demonstrate that the productivity effects of market-based environmental regulations vary according to a firm’s productivity level, thereby underscoring the heterogeneity in the moderating effects between sales and non-sales. In related studies, Yu et al. [122] investigated how green financing policies mitigate the impacts of corporate financing constraints on green innovation, utilizing data from China’s listed companies spanning 2001 to 2017. Additionally, Li et al. [86] concentrated on devising appropriate banking supervision policies to facilitate lending to low-carbon activities. By employing a macroeconomic model of agents, they differentiated the capital adequacy ratio regulations of banks based on loan types, analyzing the effectiveness of such regulations and their long-term economic implications.

Cluster #1 financial development

The second-largest cluster, #1, has 28 members in total, and the silhouette value was 0.838 in 2015. The main articles cited in this cluster are economic growth, green policy, and renewable energy. For example, [123] introduced the relationship between green bonds and renewable energy production, and how to implement a green bond policy layout in developing countries. Wang, Tsai [53] reflected on the positive effect of the Internet development of agricultural enterprises on the ecological environment due to the implementation of green finance policies. Furthermore, Lee and Lee [124] explored the significant green TFP of green finance through the development indicators and the relevant content of green finance planning [10].

Cluster #2 green buildings

The third cluster, #2, consists of 24 members, with the primary outbreak in 2015 and a silhouette value of 0.774. The primary cited literature for clustering is [123]. This research asserts that the essence of green bonds lies in people’s concerns about environmental issues and sustainable development. And this study demonstrates that green bonds significantly contribute to global carbon emission reductions and renewable energy production by channeling financial resources towards environmentally friendly projects. Notably, these effects have become more pronounced in developing countries since 2015.

4.3. Analysis of Landmark Nodes

The network’s landmark nodes consist of cited references, representing pivotal papers in the research field. The analysis outcomes are depicted in Figure 6. Listed in order of citation frequency, the top five landmark papers are [65,111,125,126,127]. Some studies [65,125,126] belong to Cluster #0 green innovation. If we consider green bonds as Cluster #0 green innovation in a broad sense, the above paper is different in this area.

Tang and Zhang [65] emphasize the positive impact of green bond issuances on company shareholders, utilizing comprehensive international green bond datasets. Their study establishes a significant positive relationship between green bond issues and stock prices, and additionally finds a positive impact of green bond issues on stock liquidity. Zerbib [125] empirically concluded that the environmental preferences of investors have a low impact on bond prices that use green bonds as an instrument. Reboredo [126] explores co-flows between green bonds and financial markets, intertwining the green bond market with corporate and Treasury markets. This study reveals substantial price spillovers from the corporate and Treasury fixed-income markets to green bonds, while the impact of the market on green bond prices is negligible. Flammer [111] supports the signaling theory that green bond issuance demonstrates a firm’s commitment to the environment. The findings reveal that investor reactions to green bond issuances are positive, especially for first-time issuers and bonds with third-party certification, and that issuers subsequently improve their environmental performance and attract more long-term and green investors. [127] highlights the major challenges faced by green energy projects, including lack of long-term financing, low investment returns, various risks, and insufficient market participant capabilities. It proposes practical solutions such as enhancing the role of public and non-bank financial institutions in long-term green investments, with practical examples for implementation.

4.4. Analysis of Co-Cited Authors

Figure 7 depicts the co-citation relationships among authors contributing to the literature on green finance, as illustrated by CiteSpace. Building on the previous analysis, it becomes evident that scholars within this community frequently exhibit high levels of co-citation. We interpret the prominence of co-citation among authors through two primary lenses. Some authors garner substantial citations due to their rigorous research and their role in establishing foundational definitions within the field. For instance, [3] articulates that green finance represents an innovative financial model that integrates environmental protection with economic profitability, while concurrently providing a relevant analysis of the current state of green finance in the renewable energy sector. Conversely, other highly cited authors achieve recognition through their contributions to trending topics within their field. T. Huang et al. (2019) posit that, as green finance progresses, 6G will surpass 5G, evolving into a green network that prioritizes high-quality service and energy efficiency.

4.5. Analysis of References with Citation Bursts

In this section, we present our analysis of citation bursts utilizing CiteSpace. Table 4 presents the top ten keywords associated with these citation outbreaks. Citation bursts function as indicators of emerging topics, where a cluster characterized by numerous citations experiencing bursts signifies an active research area. The results obtained from screening the literature related to green finance reveal significant insights.

The analysis highlights that the majority of keywords associated with citation bursts in the realm of green finance are linked to the term “green”. Notably, the concept of the green economy accounts for the highest proportion of activity, with peak citations observed between 2013 and 2018. This trend can likely be attributed to the heightened global emphasis on environmental protection during this period. However, the onset of the Sino-US trade war, ongoing geopolitical volatility, and rising raw material prices have fostered a prevailing pessimism regarding long-term investments, leading to a decline in the popularity of research focused on the green economy.

Furthermore, the analysis indicates that the content of these citation bursts aligns with the three previously identified clusters: Cluster #0 (Green Innovation), Cluster #1 (Financial Development), and Cluster #2 (Green Buildings).

4.6. Relevance of Top-Tier Findings to Quantitative Results

Our quantitative findings on the prominence and dynamics of green finance themes align closely with key insights from the top-tier studies reviewed in Section 2. First, the notable rise of green bonds over the past few years, evidenced in our burst analysis, mirrors trends identified in recent research on investment shifts. ESG rating uncertainty, which reflects market concerns over the diversification of ESG scoring systems and its associated risk premiums, further supports our interpretation of the prominence of “ESG” as a keyword in our quantitative analysis. Additionally, the increasing significance of “climate finance” and “carbon emissions” topics in our data resonates with findings on the critical role of large institutional investors in carbon reduction. Finally, the concept of a “green premium” for green assets explains the growing appeal of green finance products in our results, while the emergence of ESG efficiency frontier models aligns with recent trends in “sustainable investment.” Together, these top-tier studies and our quantitative results mutually reinforce a deeper understanding of green finance development dynamics. Specifically, we can offer the following insights:

Market Performance and Signaling Effect of Green Bonds: Our quantitative analysis shows a significant burst in the green bond theme in recent years, indicating that green bonds have become a central topic within green finance. Complementary findings in the reviewed literature suggest that green bonds are effective not only as financing tools to attract green capital but also in enhancing corporate environmental performance and awareness. For instance, research has shown that companies issuing green bonds for the first time often experience notable improvements in environmental ratings and attract more long-term green investors [111]. Further analysis reveals that third-party-certified green bonds hold greater market appeal, as investors view them as credible signals of a company’s commitment to environmental responsibility [112,115]. Consequently, policymakers could enhance the market transparency and attractiveness of green bonds by promoting certification systems, thereby facilitating an increased flow of green capital.

ESG Rating Uncertainty and Market Risk Management: In our quantitative analysis, the “ESG” theme has shown significant growth in recent years, reflecting heightened attention to ESG ratings within green finance. Top-tier studies highlight ESG rating uncertainty as a key risk in sustainable investing. Research on ESG rating inconsistencies has shown that this uncertainty heightens the market risk premium for investors and reduces the predictive power of the Capital Asset Pricing Model (CAPM) [112]. This phenomenon signals that investors should consider the potential volatility stemming from rating differences when selecting green finance products, and calls on policymakers to work toward increased transparency in ESG rating systems. By further improving the consistency and standardization of ESG ratings, policymakers can mitigate the negative impact of rating uncertainty on the market, helping investors to more accurately assess the risks and returns of ESG investments.

Influence of Major Investment Institutions on Carbon Reduction: Our quantitative findings indicate a significant focus on themes like “climate finance” and “carbon emissions” in recent years. Top-tier research shows that major global asset managers, such as BlackRock, Vanguard, and State Street, play an influential role in corporate carbon reduction efforts [114]. Studies have found that these institutions leverage their shareholder influence to pressure high-emission companies to lower their carbon output, underscoring the potential of large investment firms as powerful forces in global carbon reduction. This finding aligns with the prominence of “climate finance” in our analysis, suggesting that capital allocation within financial markets can drive corporate improvements in environmental governance. In terms of policy recommendations, governments and regulators could further empower these large asset managers to make environmental investments, thereby strengthening the role of financial markets in green transitions.

Green Premium and Returns on Green Assets: Our quantitative analysis shows an increasing market appeal of green finance products in recent years. The “green premium” on green assets, as discussed in top-tier studies, sheds light on this trend [115]. Despite relatively lower expected returns, investors are willing to accept reduced profits due to their environmental values. For example, studies on German green bonds reveal that, although their yields are lower than those of traditional bonds, they perform relatively better in the market as demand for environmentally friendly investments grows. This phenomenon offers policymakers a new perspective: by emphasizing the societal impact of green finance products, they can attract more environmentally conscious investors to the green finance market.

5. Implications of the Findings

5.1. Policy

The findings of this study have significant implications for decision-making and policy formulation regarding green finance and sustainable development. The outcomes will influence both existing and prospective policies within the sector. In the long term, persistent scarcity of raw materials and ongoing regional conflicts in the post-pandemic era have heightened tendencies to make short-term investments. Building upon this foundation, the primary research focus for scholars in green finance should be to enhance investor confidence and propose relevant policy recommendations. Our research illuminates areas where policy adjustments and regulatory frameworks are essential to improve the current landscape.

This evaluation includes assessing whether existing or newly proposed green finance policies align with or contradict social welfare objectives. Additionally, our study investigated methodologies for evaluating and measuring the effectiveness of environmental policies. We aimed to explore how various green taxes can be employed to fund vital public services and effectively achieve environmental goals, particularly in countries and regions characterized by varying levels of development and conditions.

5.1.1. Promotion and Regulation of Green Bonds

Green bonds showed the highest emergence intensity from 2022 to 2023, indicating rapid growth in this area. We recommend optimizing the policy framework for green bonds through tax incentives, disclosure requirements, and other measures to enhance market transparency and attract long-term investments.

5.1.2. Cross-Border Support for Climate Finance

Climate finance gained significant attention between 2020 and 2023. Policymakers should foster international collaboration in climate finance, such as establishing cross-national climate funds to assist low-income countries in addressing climate change challenges.

5.1.3. Enhancement of Corporate Environmental Performance

Since 2018, environmental performance has been a focal area. Policymakers can encourage this by establishing environmental performance standards and incentive policies, thus improving corporate environmental awareness and execution, driving a broader industry-wide green transformation.

5.1.4. Support Policies for Energy Efficiency Improvements

Energy efficiency is a crucial component of a low-carbon economy. Policies can support energy-saving retrofits and technological research and development to bolster the application of energy efficiency in economic activities.

5.2. Practice

This study provides a strategic framework for researchers in green finance, guiding them in identifying suitable empirical research directions that could help reduce overall financing costs. Based on the results of the “keyword burst analysis”, we recommend further exploration of green finance technologies—such as green bonds and climate finance—as well as practical applications of environmental regulations. Table data indicate that keywords like “green bond” and “climate finance” showed high burst values during 2022–2023, signaling strong development potential and significant research interest in these areas. Addressing the challenges these areas present is essential to advancing green finance.

5.2.1. Focus on Technological Applications and Social Impact

Researchers should prioritize examining the application of new technologies within green finance, particularly in areas such as green bond issuance and carbon credit trading, and assess their potential social impact. Table data reveal high burst values for terms such as “environmental performance” and “energy efficiency”, underscoring substantial, yet underexplored, opportunities for enhancing corporate environmental performance and energy efficiency. In the current economic climate, green innovation faces considerable barriers, particularly due to the dual externalities involved. The development and innovation of environmental products often entail significant costs, while the private returns are notably lower than the broader social benefits. Our findings fill a critical gap in understanding green finance innovation, highlighting the underappreciated costs of clean production and the disparity between private and social returns on innovation.

5.2.2. Policy Mechanisms and Financial Support

This study emphasizes the need to enhance private returns on green innovation through financial mechanisms, thereby supporting the sustained development of green FinTech applications. For instance, the keyword burst results for “green economy” and “corporate governance” suggest that corporate governance plays a pivotal role in green transitions. Policymakers could consider establishing incentive mechanisms, such as interest rate subsidies on green loans or tax incentives, to make green innovation projects more financially attractive, thus encouraging greater participation from private investors.

5.2.3. Aligning Corporate Profit Motives with Strategic Environmental Objectives

Moreover, the results underscore the necessity of aligning corporate profit motives with strategies to address the inherent dual externality issues in green finance. This alignment is crucial to prevent corporations from prioritizing short-term profits at the expense of long-term environmental responsibilities. Keywords like “environmental performance” and “supply chain management” reflect the importance of environmental performance and sustainable supply chain practices within green finance. Accordingly, we recommend that policymakers integrate oversight and incentive mechanisms that encourage firms to adopt proactive measures in green supply chain transformation, thereby fostering long-term environmental accountability within corporate strategies.

5.3. Further Research

The findings of this study reveal significant research gaps for scholars in the field of green finance. Given the robust growth of this domain, comprehensive research is imperative. Building upon our findings, we propose several recommendations for the continued development of green finance research. We summarize the research direction and problems in the Table 5, specifically:

First, researchers should prioritize evaluating the impact of green financial products and derivatives on the advancement of green finance, with the aim of establishing a unified international platform for these instruments. Initially, the evolution of green finance largely relied on traditional financial instruments. However, with the continuous advancement of emerging technologies, the narrative surrounding green finance is increasingly intertwined with these innovations. The widespread adoption of the Internet and the availability of big data facilitate a deeper understanding of environmental changes, effectively connecting green finance with traditional sectors significantly influenced by environmental factors, such as agriculture and heavy industry. This synergy has led to the rapid development of green financial products and derivatives, expanding beyond simple instruments like green bonds and weather derivatives. Despite these advancements, considerable gaps remain. It is essential to further standardize the trading norms for these financial products and derivatives and to establish a well-organized international platform that encompasses exchanges, trading centers, and related networks to guide the evolution of green finance.

Second, as an extension of the previous point, researchers should closely examine the application of cutting-edge technologies in related fields and their societal impacts. This paper highlights the transformative role of technology in green finance, while concurrently noting that companies with environmentally sustainable agendas are at the forefront of technological innovation within the green sector. For instance, several firms in heavily polluting industries have made substantial investments in advanced green technologies, supported by government industrial policies. Consequently, the green strategies of these firms, along with their technological advancements, serve as vital sources of practical research ideas. Investigating questions related to the potential impact of new green technologies on the industry, the societal challenges associated with their implementation (such as financing constraints), and the subsequent transformation of the green industry landscape offers fruitful research opportunities amid the dynamic evolution of emerging technologies.

Third, researchers need to focus more on understanding the interplay between green finance policies and innovation. As previously discussed, green finance policies play a critical role in promoting green finance and its associated industries. However, these policies can inadvertently lead to issues such as excessive bank credit and inefficient investments by enterprises. An intriguing area of inquiry involves establishing reasonable criteria for evaluating the appropriateness of these policies through the lens of green finance. Questions concerning the duration for policy evaluation, the historical data utilized for policy formulation, and the potential variation in outcomes based on different historical periods warrant careful examination. Are these policies only relevant in the short term? Unfortunately, there is a scarcity of research addressing these crucial aspects within the green finance domain.

In addition to these research directions, despite the burgeoning growth of green finance in emerging economies such as India, research in other developing countries remains in its infancy. Future empirical studies could focus on these nations and regions. Furthermore, with the rise of big data, updating high-quality datasets is crucial. Classic problems in green finance deserve renewed attention, and the application of novel learning methodologies can assist in establishing effective learning mechanisms within the green finance market, facilitating the identification of appropriate targets. Addressing these issues will undoubtedly inspire further research and contribute to the ongoing development of green finance.

6. The Interaction Between Different Fields of Green Finance

This section provides a comprehensive discussion of the interrelationships within green finance, emphasizing the connections between green financing and financial technology (FinTech), green financing and green building, as well as the interactions between green derivatives and green energy development. Additionally, it explores the intersections of green finance with other domains, particularly focusing on the roles of information disclosure and cultural factors. Understanding these interactions is vital as it informs stakeholders about potential synergies and challenges in implementing green finance strategies across sectors, thereby enhancing the overall impact on sustainable development.

6.1. Green Financing, Green Bonds, and Financial Technology (FinTech)

The relationship between green finance and financial technology (FinTech) has become increasingly critical as technological advancements enable more efficient allocation of resources to sustainable projects. This deepening relationship illustrates how technology is driving transformative change within green finance, particularly through the deployment of digital platforms, artificial intelligence (AI), and blockchain technology. These advancements have revolutionized the issuance and management of green bonds, green loans, and green investments [128].

The significance of FinTech is most apparent in its ability to streamline the issuance process of financial instruments such as green bonds [129]. Traditional issuance procedures for green bonds are often complex and costly, involving extensive regulatory compliance and environmental impact assessments. FinTech addresses these challenges by simplifying and optimizing these processes. For instance, blockchain technology can be employed to record and verify each step of the bond issuance process, ensuring transparency and immutability of data [130]. This decentralized technology reduces the involvement of intermediaries, thereby lowering compliance costs and making green bonds more accessible to a broader range of investors.

At the banking level, the growth of FinTech has also positively influenced the expansion of green finance. As banking systems increasingly adopt advanced FinTech solutions, such as AI-driven risk assessment tools and automated credit approval processes, the efficiency and precision of green lending have significantly improved [131,132]. FinTech platforms enable real-time monitoring of the environmental impacts of loan projects, ensuring alignment with the goals of green finance. This capability of real-time data analysis greatly enhances the transparency and accountability of green finance, thereby boosting investor confidence and encouraging greater market participation [133].

Furthermore, FinTech’s application in environmental data analysis has provided businesses and market investors with unprecedented insights. By integrating AI and big data analytics, investors can process and analyze vast amounts of environmental data to identify investment opportunities that align with sustainable development goals [134]. AI technologies are capable of rapidly processing complex datasets, identifying potential risks and opportunities, and thereby aiding investors in making more informed decisions. For example, some platforms use AI to analyze the impact of climate change on specific industries or regions, helping investors assess the feasibility of long-term investments [135]. This depth of analysis not only enhances the scientific basis for investment decisions but also strengthens the stability and foresight of the green finance market.

6.2. Green Finance and Information Disclosure

The effectiveness of green finance is heavily dependent on the quality and transparency of information disclosure [136]. High-quality and transparent information disclosure plays a crucial role in enhancing investor confidence in green finance products and fostering healthy market development. The intersection of research on information disclosure and green finance primarily focuses on the disclosure practices within the green bond market and the regulatory developments concerning green finance and information disclosure.

Information disclosure is particularly critical in the green bond market, where the success and market acceptance of green bonds largely depend on the issuer’s ability to provide detailed and transparent project information. Some studies suggest that a lack of transparency in corporate information disclosure can lead to investor skepticism regarding the environmental value of green bonds, thereby diminishing their market appeal [137]. Similarly, sustainability-linked loans (SLLs) also rely on the transparency of information disclosure. Research indicates that corporate disclosure of ESG performance, particularly regarding reductions in carbon emissions or improvements in energy efficiency, can enhance a company’s ability to secure green financing [138]. The quality of information disclosure directly influences the pricing of loans and the borrowing costs for companies. But the absence of unified disclosure standards often results in inconsistencies in the quality and scope of information disclosed, making it difficult for investors to make effective comparisons between different products. In such cases, a standardized information disclosure framework can play a critical role [139].

Additionally, the intersection of green finance and information disclosure is increasingly important in the context of regulatory development. As green finance continues to grow rapidly, research increasingly highlights the importance of information disclosure in promoting the healthy development of sustainable financial markets. Regulatory measures have not only improved the transparency of green finance information disclosure but also provided investors with more information to consider on environmental, social, and governance (ESG) factors in their investment decisions [140,141]. However, the implementation of these new regulations also poses challenges for financial institutions, particularly in how to accurately and comprehensively disclose relevant information. As financial institutions work to establish or strengthen their internal ESG data collection and reporting mechanisms to meet increasingly stringent regulatory requirements, they must also ensure that the disclosed information accurately reflects the environmental and social impacts of their investment activities, thereby avoiding the risk of greenwashing [142,143].

6.3. Intersection with Cultural Factors

Cultural factors exert a profound influence on the adoption and effectiveness of green finance. Consumer demand for green finance products, their acceptance, and the level of support from policymakers vary significantly across different cultural contexts, all of which impact the promotion and implementation of green finance.

On the one hand, cultural attitudes toward sustainability significantly influence the demand for green finance products [144]. In developed countries and in regions where cultural values emphasize the harmonious coexistence of humans and nature, environmental protection is often regarded as a core societal value. This strong environmental consciousness drives consumers and investors in these regions to prefer green finance products. In contrast, in some emerging markets, consumers and investors may be less familiar with the concept of green finance and may not fully appreciate its potential long-term benefits [145].

On the other hand, cultural factors not only affect the demand for green finance products but also influence their design and marketing strategies [146]. Financial institutions must consider the cultural norms and values of their target markets when developing green finance products, to ensure that these products resonate with local consumers [147]. This cultural sensitivity is particularly important in the global promotion of green finance. For multinational financial institutions, entering new markets requires a deep understanding of the cultural background of those markets and the ability to adjust product design and marketing strategies accordingly [148]. In some Asian countries, such as China and India, cultural tendencies toward collectivism often prioritize community and family interests over individual benefits. In contrast, in Western countries where cultural norms lean more toward individualism, the personal financial benefits of green finance products may be emphasized in marketing strategies [149,150,151]. Therefore, financial institutions need to flexibly adjust their product positioning and promotional content based on the cultural backgrounds of different consumer groups to maximize market acceptance.

7. Limits of This Research

While this study employed CiteSpace as a bibliometric analysis tool, it is crucial to acknowledge certain methodological limitations that may have influenced the accuracy and comprehensiveness of the results.

First, CiteSpace relies extensively on the construction of citation networks to identify the key literature and research hotspots within a given scientific field. The effectiveness of this approach is contingent upon the quality and scope of the underlying database. Incomplete or inaccurate citation data can introduce bias into the analysis, potentially skewing the results. Additionally, CiteSpace typically employs citation count-based metrics to assess the significance of the literature, which may overlook the diversity of content quality and academic impact. For instance, highly innovative yet infrequently cited papers may be marginalized, causing the identification of research trends to favor widely cited works that do not necessarily represent groundbreaking contributions.

Second, the slice-based temporal analysis method utilized by CiteSpace presents certain limitations. Although analyzing research trends across different time intervals provides valuable insights, this method may fail to capture the continuity of research that spans multiple time slices or evolves gradually over time, leading to a fragmented understanding of the research landscape. Furthermore, the selection of time slices may introduce subjectivity, as differing temporal divisions can yield varying analytical outcomes, thus affecting the stability and reliability of research conclusions.

CiteSpace also encounters challenges when dealing with multidisciplinary research. Given that its analytical framework is primarily based on citation networks, it may struggle to accurately capture and analyze literature that spans different academic disciplines, each with its own citation practices and standards. This limitation can restrict the tool’s applicability in interdisciplinary research, where the integration of knowledge from diverse fields is crucial.

Finally, while CiteSpace excels at visually representing citation networks and research hotspots, the interpretation of these visualizations often requires a high level of domain-specific knowledge and technical expertise. The complexity of the visual outputs may lead to misinterpretations by researchers who are less familiar with the tool, potentially compromising the accuracy of the derived conclusions. Therefore, when using CiteSpace for bibliometric analysis, researchers should supplement its findings with other qualitative and quantitative methods and exercise caution in interpreting the results, to mitigate the risks associated with the tool’s inherent limitations.

8. Conclusions

The emergence and evolution of green finance are driven by increasing environmental concerns alongside the continuous development of the global economy. As a sector dedicated to sustainable development, green finance has garnered significant attention from scholars. A comprehensive review of green finance is beneficial for advancing research in finance. The global impact of green finance is both substantial and far-reaching. This paper examines the challenges inherent in the emergence of green finance and proposes corresponding countermeasures. Utilizing a research sample from the Web of Science, we conducted a scientometric analysis of papers related to green finance in leading business, economics, and management journals from 2013 to 2022. Initially, we performed a descriptive statistical analysis of overall publication growth, primary research fields, and relevant research institutions. Subsequently, we undertook a co-citation analysis using CiteSpace to examine clusters and citation bursts in green finance research.

Drawing on this analysis, we conclude that green finance has witnessed significant growth over the past decade, characterized by an increase in the number of journals and a shift in the research center from the United States to China. While numerous developing countries have contributed to green finance research, the concentration remains predominantly in developed nations, particularly the United States and the United Kingdom, with China emerging as a leader.

Among the most influential institutions, the Chinese Academy of Sciences, Jiangsu University, and Wuhan University rank as the top three in citations. Collaborative efforts are evident among these institutions, demonstrating strong academic networks.

In terms of citation frequency, the top five authors—Wang Y, Shahbaz M, Lin BQ, Zhang DY, and IEA—have significantly influenced the field. Some have introduced new research concepts or directions in green finance’s emerging areas, while others have synthesized existing knowledge across its subfields. Their collective contributions have expanded the scope of green finance and transformed it from an academic pursuit into an industry practice.

An examination of the evolution of green finance over the past decade reveals a focus on its primary research areas: green finance, investment, and bonds. Scholars in this field continually broaden these dimensions, extending their inquiry from academia to industry applications.

This study contributes to green finance research through a systematic and scientometric approach, providing an objective review of the research history. Compared to traditional literature reviews, scientometric analysis offers greater objectivity, mitigating biases stemming from manual judgment. Moreover, it allows for the analysis of more extensive samples, aiding researchers in related fields. Through cluster analysis of co-cited papers, we identified salient issues in green finance research, ensuring robust findings. Moreover, our temporal analysis offers a historical perspective on trending topics in green finance research. The transformation of green finance research from a narrow focus to a broader context is evident. Finally, this study assists scholars and practitioners in identifying key journals, authors, and institutions in the field of green finance. In summary, we propose a comprehensive research agenda for integrating green finance into research efforts with technological, economic, and managerial perspectives, centered on systematically identifying and addressing significant gaps in the literature.

9. AI Statement

The grammar and language refinement of this article were enhanced using artificial intelligence technology. Employing an advanced AI language model, the original manuscript underwent a thorough grammatical review and lexical optimization, thereby improving the overall fluency and precision of expression. The AI tool efficiently identified and corrected grammatical errors, inappropriate word choices, and structural inconsistencies within the text, ultimately rendering the article more professional and readable.

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