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A Study on the Impact of FinTech on Green Finance and ESG Investments

2025 · International journal of business management · Vol 13 · 0 citations

Abstract

The convergence of Financial Technology (FinTech) and green finance represents a paradigm shift in the global effort to achieve carbon neutrality, offering a technological solution to the chronic "green finance gap" that currently hinders climate-resilient development. By integrating digital innovations such as blockchain and artificial intelligence (AI), the financial sector can effectively mitigate the "principal-agent" problem and reduce information asymmetry, ensuring that capital is directed toward authentic green projects rather than misleading "greenwashing" initiatives (Albert et al., 2025; Gao et al., 2024). In emerging economies like the BRICS and E7 nations, FinTech acts as a vital accelerator for energy efficiency and sustainable growth, providing the infrastructure necessary for transparent carbon credit trading and real-time ESG performance monitoring (Liu et al., 2022; Udeagha & Muchapondwa, 2023). However, the long-term success of this digital-sustainability nexus is contingent upon overcoming systemic barriers, including data fragmentation, regulatory gaps, and the persistent digital divide, which require a coordinated, multi-stakeholder strategic response to ensure that the benefits of inclusive green finance are shared equitably across the global economy (Galeone et al., 2024; Liu et al., 2022).

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