Climate　change　poses　a　persistent　threat　to　global　sustainability,　largely　driven　by　rising　carbon　emissions　from　traditional　energy　sources.　Amid　growing　international　consensus　on　the　need　for　low-carbon　transitions,　solar　energy　has　emerged　as　a　clean　and　scalable　alternative.　However,　the　high　upfront　costs　associated　with　solar　deployment　present　serious　financial　barriers,　particularly　for　developing　economies.　Against　this　backdrop,　the　role　of　financial　enablers　such　as　green　finance　has　become　increasingly　important　in　bridging　this　affordability　gap　and　facilitating　cleaner　energy　pathways.　Responding　to　this　urgency,　the　present　study　seeks　to　examine　the　impact　of　solar　energy　on　carbon　emissions,　while　also　assessing　whether　green　finance　strengthens　the　decarbonization　potential　of　solar　adoption.　To　achieve　this　objective,　the　study　gathered　the　data　from　E7　economies　over　the　period　of　2000–2023.　Fully　Modified　Ordinary　Least　Squares　(FMOLS)　method　was　employed　to　test　the　proposed　relationship　among　the　modelled　variables.　The　outcomes　of　the　study　showed　that　solar　energy　significantly　reduces　carbon　emissions.　Moreover,　the　presence　of　green　finance　amplifies　this　emission　reduction　effect　of　solar　energy.　Green　finance　itself　have　a　significant　impact　in　the　emission　reduction.　The　findings　of　the　study　confirm　that　green　finance　act　as　a　significant　moderator　and　strengthens　the　impact　of　solar　energy　in　the　CO2　reduction.　The　findings　of　the　study　highlight　the　importance　of　integrating　financial　strategies　with　energy　policy　to　achieve　long-term　climate　goals.　©　2025