Climate change has evolved into a structural challenge that affects global economic transformation, making the transition toward a green economy dependent on the integration of decarbonization, energy transition, fiscal policy, green investment, and social welfare. This study aims to comprehensively analyze these multidimensional interrelationships and to develop an integrated conceptual framework that explains the mechanisms linking technological and structural transformation, fiscal and incentive policies, investment and financing, and welfare distribution. The study employs a Systematic Literature Review (SLR) using a narrative-integrative synthesis approach and the PRISMA 2020 guidelines. Literature was collected from Scopus, Web of Science, and Google Scholar, as well as reports published by the IEA, OECD, World Bank, ILO, and UNU-WIDER during the period 2015–2026, with particular emphasis on publications from 2021–2026. The synthesis reveals that the success of the energy transition is influenced by policy support, fiscal certainty, financing availability, technological innovation, and institutional quality. The effectiveness of climate fiscal policies depends on a balanced combination of revenue and expenditure instruments, as well as revenue recycling mechanisms to minimize distributive impacts. Green investment has grown substantially, yet its distribution remains concentrated in developed countries. Furthermore, a successful transition is determined not only by decarbonization achievements and economic efficiency but also by social protection, decent job creation, and skills development. The analysis indicates reciprocal relationships among energy transition, fiscal policy, green investment, and social welfare, although only limited studies have simultaneously modeled these interactions. This study proposes an integrative framework that connects economic efficiency with social justice perspectives to support inclusive, resilient, and sustainable low-carbon development.
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