Green bonds for sustainable energy transition: unlocking resource efficiency in Asia–Pacific

PurposeThe study analyses the impact of green bonds on sustainable energy efficiency in different Asia–Pacific economies. The research evaluates the support provided by green finance towards energy efficiency and low-carbon transformations in upper-middle- and high-income countries of Asia–Pacific.Design/methodology/approachThe analysis within this study uses empirical data to understand resource efficiency changes caused by green bonds across the Asia–Pacific region. Panels of data from ten upper-middle- and high-income economies were analysed using an analysis method from 2011 to 2021. The evaluation utilizes different sustainability indices to measure how alterations in independent factors affect resource efficiency levels. The research employs CS-ARDL and analyses short-run and long-run relationships between resource efficiency and green bond issuance through panel data spanning from 2011 to 2021 across ten Asia–Pacific economies. The proposed model assesses intersectional dependencies by investigating five important variables, which include energy intensity, renewable energy consumption and carbon intensity of GDP and government effectiveness and GDP per capita growth.FindingsThe empirical result of the study shows that green bond issuance develops resource efficiency effectively at long-term timescales. Statistics show that raising green bond issuance by 1% leads to 0.20% better performance on the resource efficiency index (REI). Studies show that renewable energy use along with governance quality characteristics has beneficial results, whereas energy and carbon intensity produce harmful effects.Research limitations/implicationsStandardized data concerning green bond performance and energy efficiency metrics limit this research. Research should expand to study lasting effects and examine the impact of government policy on boosting the performance of green finance.Practical implicationsThe research gives essential information about green bond structure optimization for policymakers and financial institutions to enhance their economic value and environmental impact. The situation reveals why financial institutions need transparent reporting practices, common impact measurement frameworks and regulatory stimulation to gain business trust in green investments. The study demonstrates how green bonds help organizations implement sustainable strategies by letting them follow worldwide ESG (environmental, social and governance) criteria. The financial access for energy efficiency projects with the help of green bonds manages to fill sustainability infrastructure funding gaps and promotes economic adaptation and resilience.Originality/valueThe study introduces a novel empirical approach to analysing the impact of green bond issuance on resource efficiency across the Asia–Pacific region, using the CS-ARDL model. Its regional scope, combined with robust statistical techniques and a custom resource efficiency index, brings fresh insights into green finance. It extends the body of knowledge by integrating energy and environmental economics with sustainable finance. The study’s long-run analysis of green bonds’ effectiveness is particularly innovative and relevant.