This paper reviews the interconnections between climate change, decarbonization, and green finance. It highlights the urgent need to address climate change and its catastrophic consequences through 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 of economies, 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 of green finance in Bangladesh. The review 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 in green finance. Green finance has become vital in the worldwide struggle against climate change and environmental damage. The catastrophic implications of the changing climate for the globe and its inhabitants require prompt action. Green finance involves supplying investments, loans, or capital to support environmentally friendly activities. The green finance approach eases progress toward a more ecologically sustainable future by financing eco-friendly projects and enabling a transition away from fossil fuels. Investment in clean and renewable technologies, financing sustainable natural resource-based sustainable economies, and climate-smart blue economies are part of this process. Green finance can be crucial in achieving carbon neutrality and promoting sustainable economic growth. Green finance can support economic growth by investing in renewable industries and technologies while promoting environmental sustainability and social equity. The blue economy illustrates how green financing may promote long-term economic development while safeguarding ocean health. Green finance may help the economy grow while protecting ecological integrity by funding ocean-based sectors, including fisheries, aquaculture, marine biotechnology, and renewable energy. Green finance has been the subject of extensive research, examining various aspects related to the role of greenhouse gas emissions, environmental disclosures, climatic disaster risk, economic consequences of global warming, temperature shifts, the relationship between temperature and aggregate risk, the influence of climate policy risk on the financial system, managing investment risk in the transition to a lower-carbon economy, quantification of investment risks and policy uncertainty, and the macroeconomic consequences of climate change and private debt dynamics. In November 2021, international leaders gathered in Glasgow for the United Nations Climate Change Conference (UNFCCC) to discuss green finance, one of the five critical issues on the agenda. Green finance, or climate finance, involves acquiring and using funds to support environmentally friendly projects while supplying a reasonable return for lenders or investors. It aims to redirect financial resources towards ecologically conscious businesses to achieve sustainable development goals. Divestment from fossil fuel operations and investment in low-carbon projects and activities that sustainably protect the environment have been urged to lessen environmental harm caused by fossil fuel emissions. The participation of private actors in the field, efforts to fill funding gaps for eco-friendlyThis paper reviews the interconnections between climate change, decarbonization, and green finance. It highlights the urgent need to address climate change and its catastrophic consequences through 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 of economies, 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 of green finance in Bangladesh. The review 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 in green finance. Green finance has become vital in the worldwide struggle against climate change and environmental damage. The catastrophic implications of the changing climate for the globe and its inhabitants require prompt action. Green finance involves supplying investments, loans, or capital to support environmentally friendly activities. The green finance approach eases progress toward a more ecologically sustainable future by financing eco-friendly projects and enabling a transition away from fossil fuels. Investment in clean and renewable technologies, financing sustainable natural resource-based sustainable economies, and climate-smart blue economies are part of this process. Green finance can be crucial in achieving carbon neutrality and promoting sustainable economic growth. Green finance can support economic growth by investing in renewable industries and technologies while promoting environmental sustainability and social equity. The blue economy illustrates how green financing may promote long-term economic development while safeguarding ocean health. Green finance may help the economy grow while protecting ecological integrity by funding ocean-based sectors, including fisheries, aquaculture, marine biotechnology, and renewable energy. Green finance has been the subject of extensive research, examining various aspects related to the role of greenhouse gas emissions, environmental disclosures, climatic disaster risk, economic consequences of global warming, temperature shifts, the relationship between temperature and aggregate risk, the influence of climate policy risk on the financial system, managing investment risk in the transition to a lower-carbon economy, quantification of investment risks and policy uncertainty, and the macroeconomic consequences of climate change and private debt dynamics. In November 2021, international leaders gathered in Glasgow for the United Nations Climate Change Conference (UNFCCC) to discuss green finance, one of the five critical issues on the agenda. Green finance, or climate finance, involves acquiring and using funds to support environmentally friendly projects while supplying a reasonable return for lenders or investors. It aims to redirect financial resources towards ecologically conscious businesses to achieve sustainable development goals. Divestment from fossil fuel operations and investment in low-carbon projects and activities that sustainably protect the environment have been urged to lessen environmental harm caused by fossil fuel emissions. The participation of private actors in the field, efforts to fill funding gaps for eco-friendly