Impact of Green finance on environmental sustainability: Evidence from the UAE

Abstract

This study examines the impact of green finance on environmental sustainability in the United Arab Emirates using a secondary research design. The academic foundation comes from Khan, Riaz, Ahmed, and Saeed, who found that green finance measured through climate mitigation finance reduced ecological footprint and carbon emissions in Asian economies (Khan et al., 2022).The UAE is relevant because the country has adopted major sustainability strategies, including the UAE Energy Strategy 2050, the UAE Net Zero 2050 Strategy, and the National Climate Change Plan 2017–2050 (Government of the UAE, 2024; (Government of the UAE, 2025a; (Government of the UAE, 2025b).Green finance is treated as the independent variable, while environmental sustainability is treated as the dependent variable. The dependent variable is discussed through indicators such as CO₂ emissions, ecological footprint, renewable energy share, and clean energy capacity, while GDP per capita, energy consumption, and population are treated as control variables (World Bank, 2026; (IRENA, 2026).The results part includes numerical calculations using secondary data. These calculations show estimated total CO₂ emissions, renewable energy capacity growth, capacity-gap analysis and clean energy target, and comparison between sustainable finance targets and energy investment targets (CBUAE, 2023; (Government of the UAE, 2024; (Aletihad / IRENA, 2026).

Keywords: Green Finance, UAE, Environmental Stability, CO₂