Financing green innovation strategy: A review of corporate green bond issuance

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Abstract

The growing urgency of climate change has intensified interest in green finance, particularly green bonds, as mechanisms for financing environmentally sustainable projects. This study aims to examine the impact of corporate green bond issuance on green innovation outcomes, addressing a notable gap in existing literature regarding sectoral variations in this relationship. Employing a systematic literature review (SLR) approach guided by the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework, 32 peer-reviewed studies published between 2010 and 2024 were screened from Scopus, Web of Science (WoS), and Google Scholar. Additionally, bibliometric analysis using VOSviewer and Bibliometrix was conducted to map research trends, co-authorship networks, and keyword co-occurrences. The findings reveal that green bonds exert a positive impact on green innovation, particularly through channels such as research and development (R&D) investment, green patent filings, and resource efficiency improvements (Lin et al., 2022; Wang et al., 2022). However, significant sectoral and regional disparities were identified, with utilities and developed economies dominating issuance while manufacturing remains underexplored. The study concludes that third-party certification and regulatory frameworks are essential to mitigate greenwashing risks. These insights hold relevance for policymakers, investors, and researchers seeking to optimize green bond mechanisms for sustainable development.

Keywords: Green Bonds, Green Innovation, Corporate, Systematic Literature Review, Bibliometric Analysis, Sustainable Finance

Authors’ individual contribution: Conceptualization — M.L., M.H.Y., and N.A.W.; Methodology — M.L.; Software — M.L.; Validation — M.L.; Formal Analysis — M.L.; Investigation — M.L.; Resources — M.H.Y.; Data Curation — M.L.; Writing — Original Draft — M.L.; Writing — Review & Editing — M.H.Y. and N.A.W.; Visualization — M.L.; Supervision — M.H.Y. and N.A.W.; Project Administration — M.H.Y.; Funding Acquisition — M.H.Y.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G23, G32, Q56, O31, R11

Received: 10.07.2025
Revised: 10.11.2025; 27.11.2025; 30.01.2026
Accepted: 24.02.2026
Published online: 27.02.2026

How to cite this paper: Liu, M., Yaacob, M. H., & Abdul Wahab, N. (2026). Financing green innovation strategy: A review of corporate green bond issuance. Corporate and Business Strategy Review, 7(2), 36–48. https://doi.org/10.22495/cbsrv7i2art4