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As economies grow, they tend to prioritize industrializing with fossil fuels over protecting the environment, impeding efforts to combat climate change. Therefore, there is an urgent need to address the critical policy concern of financing a clean energy transition to ensure sustainable economic growth for current and future generations. We examine the effect of financial development on clean energy transition in 20 low-income and middle-income countries in sub-Saharan Africa. The study employs fixed-effects and instrumental variable two-stage Least squares (IV-2SLS) models to examine the effect of financial development on the transition to renewable energy. Overall, the results show a positive effect of financial development on renewable energy transition. However, the financial development effect is only significant for financial institutions instead of financial markets – a signal of weak financial markets in the region. More importantly, the results show that this financial development effect on renewable energy transition is significant only in low-income countries, contrary to middle-income economies. We recommend that governments in the region further develop and promote innovative financial market products such as green bonds and digital finance that support private sector investments in renewable energy. Regarding trade, it is critical to subsidize environmentally friendly green energy imports while taxing non-renewable products that promote the use of fossil fuels. [ABSTRACT FROM AUTHOR]

Recently, there has been an urgent need to fully implement renewable energy sources to realise green energy transitions and combat environmental pollution. This study uses a benchmark estimation model to analyse the links between green economic growth, green financing, and green energy from 2010 to 2020 and green energy advancement in China. Within the context of renewable energy, scholars have investigated various, unequal, and mediating influence connections. According to the extant literature, green economic expansion and green finance are significantly linked with renewable energy, but with diverse influences in various types of renewable technology and in various regions. The effect of green growth in the economy on green energy is non-linear, while green finance is coherent. Green technological advancement is efficiently facilitates green productivity expansion and green energy, and the investment impact is partially mediated. This study contributes significantly to the formulation of several practical initiatives to strengthen the green energy sector and facilitate sustainable growth. The results indicate that it is essential to maximise the potential of green economic activity to advance the green energy sector through the full utilisation of green accomplishments in their transformed forms. • Urgent need for renewable energy: Implementing renewables for green transitions. • Linking green growth, financing, and energy: Analyzing connections in China. • Diverse influences on renewables: Varied impacts by region and technology. [ABSTRACT FROM AUTHOR]