The Green Economy Initiative aims to achieve economic development while minimizing carbon emissions by implementing a low-carbon economy across all sectors. It is noteworthy that ships play a significant role in global commodity transportation, accounting for approximately 80–90 percent. However, this also leads to a surge in fossil fuel consumption and alarming pollution levels. The data utilized in this article spans from 2010 to 2022 and specifically focuses on the shipping industry, drawing from information collected in 20 different provinces of China. Multiple panel regression models were constructed to analyze the influence of fiscal policies on facilitating the transition toward a low-carbon economy. In addition, a vector autoregression model was employed to examine the interconnected dynamics between low-carbon transition and budgetary guidelines. The findings indicate that tax-based policies demonstrate an inverted U-shaped relationship with low-carbon transition, whereas transfer payment policies exhibit an N-shaped pattern. The shipping sector is actively embracing low-carbon practices, largely due to incorporating digital technologies that mitigate the adverse impacts of fiscal regulations.

The paper explores the concept of “green finance” and its role in addressing environmental issues through diverse funding strategies in China. It analyzes the factors driving renewable energy development in China from 2005 to 2022 using a unique method called “christened plate cointegration” and connectedness modeling. The study highlights the significance of encouraging environmentally responsible financing and involving private sector businesses in regional and global growth for long-term sustainability. The paper emphasizes the importance of cross-country dependence (CD) as a metric for analyzing interconnectedness between studied countries and suggests isolating the pass dependence for an impartial CD analysis. The study demonstrates that an increase in renewable energy usage leads to a rise in trademark registrations and financial development applications, and private sector involvement corresponds to the rise in trademarks and patents. Overall, the study emphasizes the significance of green financing in mitigating climate change and advancing sustainable growth, as well as the role played by private enterprises in local, national, and global development.