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Abstract

This study investigated the role of green bonds in facilitating climate finance goals across emerging economies, with a specific focus on institutional, economic, and policy determinants. Using a quantitative approach, data were collected from ten emerging economies for the period 2018–2024. Variables included green bond issuance volumes, GDP growth rates, regulatory quality indices, and national climate policy scores. Statistical analyses—comprising descriptive statistics, Pearson correlation, multiple regression, Shapiro-Wilk tests, and multicollinearity checks—revealed that regulatory quality and climate policy strength were the most influential predictors of green bond issuance. The regression model demonstrated a strong fit, with an Adjusted R² of 0.73 and a significant F-statistic (p < 0.05), confirming that policy and institutional frameworks were more decisive than macroeconomic growth in determining sustainable finance outcomes. The study found that countries with clear climate strategies and strong governance mechanisms attracted higher levels of green bond capital. These findings carry substantial implications for policy design in developing economies, emphasizing the need for institutional reforms, policy alignment with global climate goals, and enhanced transparency to stimulate green financial markets. The study concludes by offering practical recommendations for regulators and policymakers, while suggesting directions for future research into environmental impact measurement and sector-specific green investment patterns.