This paper comprehensively reviews the interconnections between climate change, decarbonization, and green finance. It emphasizes the urgency of addressing climate change and its catastrophic consequences, highlighting green finance as a vital tool in the global struggle against environmental damage. Green finance involves providing investments, loans, or capital to support environmentally friendly activities, facilitating the transition to a more sustainable future. The review explores the theoretical framework of green finance, including its impacts on climate change, decarbonization, carbon-stranded assets, risk management, renewable energy, and sustainable economic growth. It also examines regional focuses in Asia, such as the importance of green finance in China and the beliefs and challenges in Bangladesh. The paper discusses future directions and recommendations for advancing green finance, emphasizing the need for more research in mainstream economics and finance journals to bridge the knowledge gap and foster broader scholarly engagement. The study aims to help researchers, policymakers, investors, and stakeholders combat climate change and promote sustainable development through reliable and robust insights into green finance.This paper comprehensively reviews the interconnections between climate change, decarbonization, and green finance. It emphasizes the urgency of addressing climate change and its catastrophic consequences, highlighting green finance as a vital tool in the global struggle against environmental damage. Green finance involves providing investments, loans, or capital to support environmentally friendly activities, facilitating the transition to a more sustainable future. The review explores the theoretical framework of green finance, including its impacts on climate change, decarbonization, carbon-stranded assets, risk management, renewable energy, and sustainable economic growth. It also examines regional focuses in Asia, such as the importance of green finance in China and the beliefs and challenges in Bangladesh. The paper discusses future directions and recommendations for advancing green finance, emphasizing the need for more research in mainstream economics and finance journals to bridge the knowledge gap and foster broader scholarly engagement. The study aims to help researchers, policymakers, investors, and stakeholders combat climate change and promote sustainable development through reliable and robust insights into green finance.