The Asia-Pacific region faces challenges in terms of investment integrity, regulatory and technological barriers, and limited green investment, thus necessitating rapid research growth. Despite numerous studies on Sustainable Finance, developing nations require specific regulatory frameworks. This study explores sustainable finance regulation development, its narrative progression, the impact of global regulatory changes on innovation, and how legal adjustments can enhance sustainable finance during the energy transition. Through a bibliometric analysis and systematic literature review of 137 documents, this study highlights the contributions of scholars in China, Japan, and Malaysia. Since the Paris Agreement, the focus has shifted to green finance and technological advancements. New financial instruments such as green bonds and sustainable loans have driven innovation. Regulatory adjustments should support investment in energy transitions and green technologies. This study emphasizes the importance of transparency, consistent measurement and reporting, and strengthened supervision in sustainable finance policies. Effective practices and international cooperation are essential for future policy development, sustainable growth, and a fair energy transition.