Green Finance Utilization Among G20 Nations: Assessment Using the CRITIC-TOPSIS Approach

Abstract

This study evaluates and ranks G20 countries' green finance utilization (GFU) using the CRITIC-TOPSIS multi-criteria decision-making method, based on fifteen indicators across financial, environmental, developmental, and innovation dimensions. Germany ranks highest due to strong performance in renewable energy, environmental sustainability, human development, and innovation. Despite leading in green bond issuance, China scores lower due to high emissions and fossil fuel dependence. Brazil ranks unexpectedly high, driven by its renewable energy mix, while France, Japan, the UK, and India also perform well. Lower rankings for Saudi Arabia, Russia, and South Africa reflect weak climate action and fossil fuel reliance. Alternative methods such as VIKOR, EDAS, MOORA, and COPRAS were applied for robustness, showing consistent country rankings. Sensitivity analysis using equal indicator weights further confirmed the stability of the results. The findings emphasize that green finance (GF) effectiveness relies on integrating financial instruments within broader sustainability strategies, offering a valuable benchmark for policymakers and guiding future research in climate finance.