Worldwide, all countries have been facing the crisis of climate change problem. They have been addressing this issue by focusing on implementing green energy innovation initiatives and promoting a sustainable future through environmental sustainability. In this research study, we focus on examining the role of green finance through green energy innovations, which are taking place in several sectors across different regions to promote environmental sustainability. The study has analysed 152 articles on this research domain through a systematic literature review to understand the present state of existing knowledge. The current study examines the Scopus-indexed research articles from the time period 2002 to 2023. Six emerging themes have been examined to understand their development and the potential impact of green initiatives for environmental sustainability. Various institutional theories have been explored to understand their association with the investigated research area. The paper has discussed multiple challenges that need to be addressed for the speedy implementation of green innovations. Finally, future research questions have been proposed based on the findings from the extant literature and the existing research gaps.