Walaa Ismael Alnassar
As the fossil energy consumption and the ever-worsening contamination of environment continue to expand, low-carbon improvement seems to be the only way to go. Green loan is an avenue for firms to reduce the finance pressure that comes from the reduction of carbon discharge. This loan has gained popularity worldwide in recent years due to the striking environmental issues from various economic activities. This research examines the role of green loan and CPIA policy (environmental sustainability index) in emission reduction with an application of a cross countries dataset of 82 countries in 2014. As revealed by the outcome, it is anticipated that the green loan and environmental sustainability policy give a positive impact on pollution reduction. This proposes that having the government endorse the green loan promote environmental sustainability can contribute to a much better and fresher ecosystem.