ACHIEVING GREENHOUSE GAS MITIGATION THROUGH CLIMATE CHANGE CONTROL WITH THE ROLE OF FINANCIAL DEVELOPMENT: INSIGHTS FROM BRICS

Zhen Liu, Jiali Tian, Leiling Wang and Rubab Gul

Chapter 2 in Sustainable Growth and Green Policies:Navigating Energy and Environmental Challenges, 2025, pp 23-46 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The study inquired the role of financial development (FD) on climate change control in COVID-19 period to identify the ways useful to achieve greenhouse gas mitigation in BRICS economies. BRICS countries are included because of their high energy-environment dependence and their need for climate financing through FD promoting greenhouse gas emission. The projected role of FD activity on climate change mitigation is inferred using the generalized methods of moments (GMM). The study results indicated that five out of the six climate change mitigation indicators have a long-term correlation with BRICS’s CO2 emissions. On the other side, there is no evidence of integration between variables in Russia. Moreover, the findings revealed that there 18% rise in FD is estimated, this raised the probability of effective climate change mitigation by 39% in the post-COVID-period, and it reduces greenhouse gas mitigations by 24.7%. The results also highlighted that there is a one-way correlation between energy use and climate drifts. On these findings, policymakers and environmental regulators in BRICS could take inspiration from our study to plan and revisit greenhouse gas mitigation through proper environmental legislation. Additionally, it also encourages other countries and economies to perform comparable assessments and select the best course of action. Hence, this study provides detailed and viable recommendations for key stakeholders for consideration and application to achieve the intended objectives.

Keywords: Sustainable Growth; Green Policies; Energy Transition; Green Finance; Carbon Neutrality; Renewable Energy; Climate Change Policy; Environmental Sustainability; Economic Recovery; Carbon Markets; Sustainable Development; Energy Policy; Green Economic Recovery; Low-Carbon Economy; Financial Mechanisms For Sustainability; Climate Finance; Macroeconomic Policies and Sustainability; ESG Investing; Climate Resilience; Clean Energy Investment; Green Bonds; Sustainable Finance; Carbon Pricing; Energy Efficiency; Emerging Economies and Sustainability; Renewable Energy Financing; Circular Economy; Sustainable Investment; Climate Risk Assessment; Just Transition; ASEAN Energy Transition; BRICS Economies and Sustainability; OECD Green Policies; China's Carbon Market; EU Climate Policies; Southeast Asia Renewable Energy; Developing Economies and Climate Finance; Energy Poverty and Sustainable Solutions; Public Spending and Green Recovery; Net-Zero Policies; Econometric Models in Sustainability; Quantitative Analysis of Energy Markets; Cross-Sectional Autoregressive Distributed Lag Models; Behavioral Finance and Renewable Energy Investment; Policy Evaluation Frameworks; Decarbonization; Sustainable Development Goals; Green Growth (search for similar items in EconPapers)
JEL-codes: F64 O13 Q50 Q56 Q58 (search for similar items in EconPapers)
Date: 2025
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