<![CDATA[Background: The decarbonization of electric utilities in ASEAN requires financing instruments that can reduce corporate carbon intensity without compromising energy security. Objective: This study examines whether green finance reduces emission intensity and whether leverage and return on investment condition this effect.Methods: The study uses secondary panel data from electric utility and energy companies in ASEAN during 2015–2024. Green finance is proxied by green loans and green bonds scaled by total assets and lagged by one year, while emission intensity is measured as emissions per unit of sales. The empirical model is estimated using panel regression, and model selection tests support the random-effects specification. Results: The results show that green finance has a negative and statistically significant effect on emission intensity. The interaction between green finance and leverage is positive and significant, indicating that higher debt weakens the emission-reducing effect of green finance. Conversely, the interaction between green finance and return on investment is negative and significant, indicating that stronger investment returns enhance the effectiveness of green finance. ESG scores are also associated with lower emission intensity, while state-owned enterprises tend to exhibit higher emission intensity. Conclusion: The findings imply that green finance is more effective when supported by a sound capital structure, adequate investment returns, and effective sustainability governance.]]>
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