Nexus between energy consumption, climate risk development finance and GHG emissions

Abstract

Development financing focusing on climate hazards has become necessary in recent decades as a result of the rise in emissions of greenhouse gases (GHG). This study investigates how the Congo Basin’s greenhouse gas emissions are affected by using renewable energy sources and climate risk-related development financing. Multiple conclusions are drawn from panel regression analysis. First, there’s a slight but substantial rise in GHG emissions when climate risk-related development finance increases. Second, a boost in climate risk-related mitigation finance substantially encourages the introduction of renewable energy. Third, greater utilization of renewable energy results in a diminution in GHG emissions. Finally, greater utilization of the renewable energy minimizes the influence of the climate risk-related development finance. The research recommends creating a monitoring system to guarantee the effective use of climate funding for generating renewable energy sources, including wind, biomass, geothermal, hydropower, and solar energy. Additionally, it urges donor economies and authorities to provide emerging economies with a supplementary consistent and steady flow of financing for development mitigation connected to climate risk.