The Impact of Sustainable Finance on Petroleum Trade and Transportation: Evidence from the Global Energy Transition

Abstract

This study examines the impact of sustainable finance on petroleum trade and transportation within the context of the global energy transition, employing a quantitative-dominant mixed-method empirical design. Primary data were collected through structured questionnaires (n = 86) and complemented with secondary data from industry reports and academic literature. Descriptive and inferential statistical techniques, including correlation and regression analysis, were used to test the study hypotheses. The results indicate that sustainable finance has a significant negative effect on access to capital (β = -0.50, p < 0.001), reflecting the tightening of ESG-based financing conditions, which reduce capital availability and increase the cost of capital in carbon-intensive sectors. Conversely, sustainable finance exerts significant positive effects on trade flows (β = 0.42, p < 0.01), innovation (β = 0.60, p < 0.001), and alignment challenges (β = 0.47, p < 0.001). These findings highlight the dual role of sustainable finance as both a constraint and a driver of transformation in carbon-intensive sectors.