Innovation and Disruptive Technologies for Sustainable and Climate Finance

Abstract

This study explores how disruptive technologies, and financial innovations can strengthen climate and sustainable finance by addressing persistent structural, institutional, and social barriers. Using a systematic literature review, the research analyzes academic and policy sources to explore the integration of tools such as blockchain, artificial intelligence, and decentralized finance into climate finance frameworks. The central hypothesis is that these innovations enhance the transparency, accessibility, and effectiveness of climate finance, particularly in developing economies. Findings suggest that innovation can improve fund traceability, stakeholder inclusion, and project evaluation, contributing to more equitable and resilient financing mechanisms. However, technological adoption faces limitations related to regulatory gaps, technical capacity, and institutional resistance. The article’s originality lies in linking disruptive innovation to climate justice and proposing a framework for more just and efficient financial architecture. It contributes to climate policy, finance, and development debates by bridging technological potential with sustainability goals.