Advancing energy-related climate mitigation technologies in arctic region: the impact of green finance and critical mineral resources

A global consensus emphasizes the need for industrialized nations to accelerate their transition to low-carbon technologies. This transition is crucial to mitigate the effects of climate change and prevent global temperatures from rising more than 2 degrees Celsius above pre-industrial levels. Green finance and access to essential mineral resources are central to the promotion of technologies aimed at mitigating climate change. The concentration of the availability of key minerals in a limited number of countries creates a dependency between producers and consumers. As a result, there is a growing interest in understanding how green finance and critical mineral raw material imports (CMRI) influence innovation in climate change mitigation technology. This study examines the influence of green finance, CMRI, renewable energy generation, industrial value added and GDP growth on climate related technology innovation in Arctic Region from 1996 to 2021. Using the Method of Moments Quantile Regression (MMQR) model, complemented by validation using Newey–West regression, the analysis shows that both green finance and critical mineral resource imports are positively associated with climate change technology innovation and thereby promote climate related technology innovation. Our findings provide valuable insights for the formulation of critical material-specific strategies and policy frameworks tailored to the supply chains of Arctic countries. Such strategies are crucial to advance global energy transition goals and promote the transition to climate technologies.