Role of Renewable Energy and Financial Innovation in Environmental Protection: Empirical Evidence from UAE and Saudi Arabia

Abstract

In modern times, many countries are committed to achieving climate neutrality and environmental sustainability. Without financial innovation and green financing, switching to clean energy, reducing carbon emissions, and mitigating climate change will be impossible. The main objective of this study is to obtain zero carbon to protect the environment. To analyze sustainable development pathways, this research examines the impact of renewable energy and financial innovation on the environmental protection of the United Arab Emirates and Saudi Arabia from 2010 to 2021. The use of renewable energy sources, pollution, and climate change are all significant elements. Innovation can help slow the rate of global warming by lowering carbon emissions and expanding the usage of renewable energy sources. Green financing and innovation are powerful tools for environmental safety and deterioration. The acceleration of renewable energy growth is the primary driver of sustainable development. Moreover, green financing balances the innovation–energy–environment–climate nexus. Similarly, green finance amplifies the positive effects of innovation on using renewable energy. This study provides valuable insights into achieving zero carbon by producing renewable energy sources and modern green technology. Further research is possible by adding more dimensions of renewable energy sources.