Green financing has been examined in the literature. However, its impact on carbon intensity has not been fully investigated. This research sets out to fill this gap by using the dimensions of green loans, securities, insurance, and investment. In exploring the connections between green financing, nonfossil energy use, and carbon intensity, we utilized data from 2016 to 2020 to run an advanced quantile modeling. We applied the decision-making unit-method of data envelopment analysis for analyses. Our main findings are as follows. Rapid advances in the green finance sector in Organisation for Economic Co-operation and Development countries were coupled with an increase in nonfossil energy usage, resulting in a decline in carbon intensity. When the growth in nonfossil energy consumption was reduced, green investment was put on hold, and the green financing industry would be negatively impacted. The role of green financing and carbon intensity in nonfossil energy use is coupled with strong government policy interventions. Nonetheless, the effects of green finance initiatives often lag. Moreover, these effects are inconsistent. This research suggests new methods to increase the use of nonfossil energy, build a carbon trading market, and increase the consumption of green financing policies post COVID-19.

The aim of the study is to test the nexus between oil prices, energy risk exposer, and financial stability to recommend the implications for the period of COVID-19 crises. The study findings show that a systemic macroeconomic simulation that combines with the 17% oil prices and 26% energy risk exposure at household item demand gives a rise to energy subsidies at 18.14% and it contributes to make energy financing as efficient as 38.3% in study context. By this, the oil prices and energy risk exposure repercussions caused significant connection with financial stability. Utilization of oil-importing and oil-exporting economies necessitates the use of energy. Energy and capital are complementary in manufacturing. Following the study findings, we suggested and adjusted the energy risk exposure framework to take into account. The findings show that allocating oil price-related subsidy to enterprises yields the best policy results. However, the benefit to society as a whole is quite small. Additional analysis results indicate that in a less energy-dependent sector, having no subsidies would be the best strategy. On such benefits, different policy implications are also suggested for associated individuals to sustain financial stability.