Comparative Models of Green FinTech in Net Zero Transitions

Abstract

The international obligation to reach the net-zero level of emissions has enhanced the requirement to develop new financial tools that would be able to raise funds to support sustainable development. One of the factors in this transition has been financial technology (FinTech) that has employed digital innovation and financial services to help provide sustainable investment, transparency, and efficiency in capital allocation. Green FinTech is the intersection of FinTech innovations and environmentally sustainable goals, especially those of assisting climate mitigation and climate adaptation policies. The chapter analyzes the examples of green FinTech, and the way they facilitate net-zero transitions. Based on theoretical frameworks and new trends in the world, the chapter outlines the major models such as digital green lending systems, carbon markets facilitated by blockchain, AI-based climate risk analytics, and crowdfunding solutions to sustainable projects.