Document details

Global warming is expected to rise to 3.1°C without immediate action, far surpassing the Paris Agreement Objectives. This raises a critical question: “What is the dynamic between financial constraints, environmental performance, and the role of banks in incentivizing a low carbon economy?”. By examining four high-emitting sectors of the Iberian Peninsula, this research offers a fresh perspective on an unexplored region. The findings confirm a positive link between financial stability and reduced emissions, highlighting the potential of sustainable models. However, green financing mechanisms have yet to deliver significant emission reductions, implying an urgent need for stricter oversight by financial institutions.