ABSTRACT The paper examines the relationship between financial technologies (FIN), institutional quality (GOV), fiscal decentralization, and natural resource management in influencing sustainable development and environmental efficiency among OECD economies between 1990 and 2022. The analysis is conducted using advanced panel diagnostic techniques and the Method of Moments Quantile Regression (MMQR) framework. The empirical results indicate that the positive impact of fiscal decentralization and effective systems of governance on the production of green products will be counted, whereas financial technologies and reliance on mineral resources will lead to adverse consequences for sustainability. These outcomes underscore the paradoxical nature of fintech, which, while enhancing financial accessibility, simultaneously reinforces unsustainable practices in the energy and resource sectors. The study emphasizes the need for OECD economies to harmonize their strategies by advancing green finance innovation, strengthening institutional frameworks, and reducing resource dependence. These economies should reorient fintech development toward sustainability goals through targeted regulation, energy‐efficient digital infrastructure, and alignment with low‐carbon transition strategies.
This study has been undertaken in the burgeoning intersection of financial technology (Fintech) and Environmental, Social, and Governance (ESG) paradigms, a domain that serves the purpose of redefining capital allocation in the 21st century. The research investigates the "Digital-Sustainability Convergence" theory, which posits that digital innovations serve the purpose of democratizing green finance and enhancing transparency. However, a critical review of the literature reveals a phenomenon termed the "Green Mirage," where the digital representation of sustainability obscures a lack of tangible ecological impact. Utilizing a bibliometric analysis based on VOS viewer logic, this paper examines a dataset of academic literature from 2015 to 2025. The findings indicate that while publication volume is on a rise, particularly in China and the United Kingdom, the intellectual structure is fragmented. The analysis identifies a significant gap between technological implementation—such as blockchain and artificial intelligence (AI)—and genuine sustainability outcomes. It is important to note that concepts like "token washing" and "digital greenwashing" have emerged as pivotal retention factors for critical scholarship, suggesting that the sector faces an important challenge in aligning "proof of stake" with "proof of impact." The study concludes that while Fintech serves the purpose of mobilizing retail capital, with 81.5% of investors considering ESG factors, the prevalence of managerial myopia and data asymmetry poses a challenge for the integrity of the ecosystem. Thus, it is important that regulators and practitioners move beyond symbolic compliance to address the structural disconnects identified.
Clean energy transitions increasingly depend on the ability of small and medium-sized enterprises (SMEs) to access capital on terms that allow them to compete with large, vertically integrated incumbents. At a macro level, clean energy finance has evolved from subsidy-heavy public funding toward blended models combining private capital, risk-sharing instruments, and performance-based incentives. These structures aim to lower the cost of capital, correct market failures, and accelerate diffusion of renewable technologies across national energy systems. However, capital markets continue to privilege scale, balance-sheet strength, and long operating histories, creating persistent financing asymmetries that disadvantage smaller firms. This study situates clean energy financing within broader frameworks of financial inclusion, industrial competitiveness, and energy market liberalization. It examines how innovative financing architectures such as blended finance vehicles, green credit guarantees, pay-as-you-save schemes, revenue-backed project finance, and aggregated procurement platforms reshape risk allocation and margin dynamics. By reducing upfront capital requirements, smoothing cash flows, and improving bankability, these models enable SMEs to price energy products and services competitively while maintaining sustainable margins. Narrowing to the national context, the analysis highlights how policy design, regulatory certainty, and domestic financial infrastructure determine whether financing innovations translate into real competitive parity. Case-informed synthesis shows that when concessional capital is strategically deployed to crowd in commercial lenders, small enterprises can achieve cost structures comparable to larger incumbents, expand market share, and drive decentralized energy adoption. The findings underscore that clean energy competition is not solely a technological challenge, but a financial architecture problem, where well-designed financing models are decisive in leveling margins and unlocking inclusive energy-led growth at national scale under diverse regulatory and macroeconomic conditions globally relevant insights.
Purpose : The present study aimed to find a solution to the sustainability dilemma between conventional and digital assets. Design : The study employed two conventional assets/commodities, i.e., gold, oil & gas, and three digital assets, i.e., Bitcoin, Ethereum, and DeFi, from 2017 to 2024 on a daily basis. The financial price data representing the underlying investor sentiments was extracted from S&P for all the variables. A structural break was considered, focusing on the major algorithm alteration for Ethereum in 2022. Therefore, Autoregressive Distributed Lag (ARDL) models have been employed for two different time frames. Findings : The results suggested that conventional assets had a positive and significant relation with sustainability, proxied by Environment, Social, and Governance (ESG). In contrast, digital assets like Bitcoin and Ethereum do not hold a significant relation. To our surprise, the coefficient turned negative for Bitcoin and Ethereum after the structural change. Therefore, the findings revealed that crypto investors are least bothered about climatic conditions and are gung-ho for earning huge returns. Practical Implications : It is recommended to initiate a green framework for digital assets. Additionally, ESG disclosures help sensitized investors to climate change. Originality : Prior literature lacks a comprehensive comparative analysis of the conventional and digital assets in the context of sustainability.
Water scarcity represents one of the most critical challenges confronting arid and semi-arid regions, particularly under the intensifying pressures of climate change. In desert environments, limited freshwater availability constrains public health, food security, and socio-economic development, while traditional funding mechanisms often prove inadequate for scaling sustainable water infrastructure. This study examines the potential of decentralized finance (DeFi) bonds, combined with desalination and atmospheric water harvesting technologies, as an innovative financing and delivery model for enhancing water resilience in desert regions. The research adopts a qualitative, exploratory case study approach, drawing on a structured review of academic and policy literature, documented blockchain-based water initiatives, and a conceptual financial analysis of DeFi bond mechanisms. The OikosNomos.world (ONW) initiative is examined as the primary case study, with attention to its proposed deployment of solar-powered desalination systems, boreholes, and atmospheric water harvesting infrastructure. The analysis indicates that existing desalination and water harvesting technologies are technically viable in arid environments, particularly when integrated with renewable energy systems. Furthermore, blockchain-enabled DeFi bonds demonstrate potential to enhance transparency, automate fund allocation through smart contracts, and attract global impact-oriented capital beyond traditional grant-based models. However, the study also identifies key challenges, including regulatory uncertainty, governance complexity, infrastructure constraints, and the need for sustained community engagement. The paper concludes that while DeFi-financed water infrastructure is not a standalone solution to water scarcity, its strategic integration with proven water technologies and inclusive governance models offers a scalable and transparent pathway for strengthening desert resilience. Future empirical research and pilot deployments are required to validate financial performance, adoption outcomes, and long-term socio-environmental impacts.
Fintech enterprises operate at the intersection of rapid technological innovation and stringent regulatory oversight, creating a complex organizational challenge. This review systematically examines organizational restructuring strategies that enable fintech firms to balance innovation and compliance. Drawing on the concepts of ambidexterity and contingency theory, the paper analyzes functional, divisional, matrix, and networked structures, highlighting their respective advantages and limitations for fostering innovation and ensuring regulatory adherence. Cross-functional teams, hybrid models, and embedded compliance practices emerge as key enablers for achieving dual objectives. The synthesis provides practical guidance for managers seeking to design adaptable organizational architectures, while also offering theoretical contributions to the literature on innovation management and regulatory alignment. Future research directions include cross-country comparisons, longitudinal studies, and exploration of emerging fintech models such as decentralized finance platforms.
Purpose This study investigates the impact of transitioning from the proof-of-work (PoW) to the proof-of-stake (PoS) consensus protocol on the relationship between cryptocurrency volatility and energy shocks. Design/methodology/approach We exploit the random nature of the transition to the PoS consensus algorithm as a quasi-natural experiment. We analyze this issue for the volatility processes of four digital currencies with high market capitalization using GARCH models. Findings Our cross-sectional findings suggest that after the transition to the PoS consensus protocol, cryptocurrency volatility becomes significantly less responsive to energy market shocks. Originality/value The findings of this study advocate for the migration from the energy-intensive PoW consensus protocol to the more environmentally sustainable PoS protocol. Moreover, this study advances the literature on green finance by documenting a strong case for cryptocurrency stakeholders to switch to the PoS protocol.
The article substantiates the critical inadequacy of traditional static risk assessment methods (specifically, VaR and standard deviation) for analyzing the effectiveness of integrating Decentralized Finance (DeFi) assets into investment portfolios. It is proven that the returns of DeFi assets are characterized by a non-normal distribution with pronounced «fat tails», which creates a significant risk of underestimating catastrophic losses. The purpose of the study is to develop and theoretically substantiate a methodology for evaluating the effectiveness of DeFi platforms in diversifying investment portfolios. The methodological gap between the requirements of the volatile DeFi market and the limitations of classical financial models is investigated, particularly in the areas of controlling Tail Risk and the dynamic nature of correlational dependence, which critically increases during market shocks (the «correlation-to-one» effect). A four-stage methodology is proposed, which includes the theoretical integration of Conditional Value-at-Risk (CVaR) as a basic coherent measure of extreme risk and a developed algorithm for proactive diversification management based on the DCC-GARCH model. This made it possible to calculate the Optimal Dynamic Hedging Weight, necessary for the daily adjustment of the portfolio structure to prevent the loss of the diversification effect. The comprehensive methodology developed provides a complete cycle of proactive risk management and offers a clear algorithm for making decisions about the structure of an investment portfolio. The scientific and practical significance of the research lies in formulating methodological recommendations and evaluation criteria that ensure a transition from static analysis to proactive risk management in investment activities. The developed methodology provides a toolkit for making informed decisions regarding the optimal share of DeFi assets in a portfolio, combining return maximization with extreme risk minimization. The application of this methodology is beneficial for investors, financial analysts, quantitative strategists, and hedge fund managers working with high-risk and innovative asset classes that require advanced risk control tools.
The article substantiates the critical inadequacy of traditional static risk assessment methods (specifically, VaR and standard deviation) for analyzing the effectiveness of integrating Decentralized Finance (DeFi) assets into investment portfolios. It is proven that the returns of DeFi assets are characterized by a non-normal distribution with pronounced «fat tails», which creates a significant risk of underestimating catastrophic losses. The purpose of the study is to develop and theoretically substantiate a methodology for evaluating the effectiveness of DeFi platforms in diversifying investment portfolios. The methodological gap between the requirements of the volatile DeFi market and the limitations of classical financial models is investigated, particularly in the areas of controlling Tail Risk and the dynamic nature of correlational dependence, which critically increases during market shocks (the «correlation-to-one» effect). A four-stage methodology is proposed, which includes the theoretical integration of Conditional Value-at-Risk (CVaR) as a basic coherent measure of extreme risk and a developed algorithm for proactive diversification management based on the DCC-GARCH model. This made it possible to calculate the Optimal Dynamic Hedging Weight, necessary for the daily adjustment of the portfolio structure to prevent the loss of the diversification effect. The comprehensive methodology developed provides a complete cycle of proactive risk management and offers a clear algorithm for making decisions about the structure of an investment portfolio. The scientific and practical significance of the research lies in formulating methodological recommendations and evaluation criteria that ensure a transition from static analysis to proactive risk management in investment activities. The developed methodology provides a toolkit for making informed decisions regarding the optimal share of DeFi assets in a portfolio, combining return maximization with extreme risk minimization. The application of this methodology is beneficial for investors, financial analysts, quantitative strategists, and hedge fund managers working with high-risk and innovative asset classes that require advanced risk control tools.
The convergence of artificial intelligence (AI), machine learning (ML), blockchain, and big data analytics is transforming the governance, sustainability, and resilience of modern banking ecosystems. This study provides a multivariate bibliometric analysis using Principal Component Analysis (PCA) of research indexed in Scopus and Web of Science to explore how decentralized digital infrastructures and AI-driven analytical capabilities contribute to sustainable financial development, transparent governance, and climate-resilient digital societies. Findings indicate a rapid increase in interdisciplinary work integrating Distributed Ledger Technology (DLT) with large-scale data processing, federated learning, privacy-preserving computation, and intelligent automation—tools that can enhance financial inclusion, regulatory integrity, and environmental risk management. Keyword network analyses reveal blockchain’s growing role in improving data provenance, security, and trust—key governance dimensions for sustainable and resilient financial systems—while AI/ML and big data analytics dominate research on predictive intelligence, ESG-related risk modeling, customer well-being analytics, and real-time decision support for sustainable finance. Comparative analyses show distinct emphases: Web of Science highlights decentralized architectures, consensus mechanisms, and smart contracts relevant to transparent financial governance, whereas Scopus emphasizes customer-centered analytics, natural language processing, and high-throughput data environments supporting inclusive and equitable financial services. Patterns of global collaboration demonstrate strong internationalization, with Europe, China, and the United States emerging as key hubs in shaping sustainable and digitally resilient banking infrastructures. By mapping intellectual, technological, and collaborative structures, this study clarifies how decentralized intelligence—enabled by the fusion of AI/ML, blockchain, and big data—supports secure, scalable, and sustainability-driven financial ecosystems. The results identify critical research pathways for strengthening financial governance, enhancing climate and social resilience, and advancing digital transformation, which contributes to more inclusive, equitable, and sustainable societies.
Abstract Green entrepreneurship has emerged as a key driver of sustainable market transformation, linking innovation, environmental stewardship, and social equity. Green entrepreneurship plays a vital role in enabling low-carbon growth by introducing innovative solutions that mitigate environmental impact while generating socio-economic value. The emergence of carbon markets provides a new economic mechanism to reward emission reduction activities, thereby creating sustainable market opportunities. This research explores how carbon finance mechanisms, including carbon credits, offset projects, and nature-based solutions, can support the growth of green enterprises. The study examines the potential of decentralized community-led green entrepreneurship models like coir and bamboo to participate in carbon markets and contribute to sustainable market ecosystems using digital tools and online platforms. It aims to explore how rural fibre-based industries can leverage carbon finance mechanisms to achieve environmental sustainability while enhancing rural livelihoods. By investigating the research intersection of low-carbon innovation, community enterprise, and carbon monetization, this research positions Online Green Entrepreneurship as a transformative pathway for building in Sustainable Markets Ecosystem. Keywords: Green Entrepreneurship, Sustainable Markets, Digital Tools, Online Platforms, Low-Carbon Innovation, Carbon Markets, Carbon Finance, Rural Livelihoods, Community Enterprise, Socio-Economic Value, Ecosystem.
The association between cryptocurrency and sustainability is a complex and growing topic. Given that such linkage requires a continuous investigation, this empirical research, unlike the existing literature, explores if the volatility dynamics of digital assets are driven by the changes in sustainability uncertainty. In doing so, we use a recently developed ESG-based sustainability uncertainty index (ESGUI) and examine its effect on the volatility dynamics of Bitcoin and Ethereum ETFs. Employing the mixed data sampling (MIDAS) approach shows that ESGUI exerts a negative effect on the realized volatility of cryptocurrency markets. One possible explanation for this linkage is that as sustainability-related uncertainty rises, investors tend to adopt sustainability practices and initiatives. This shift towards sustainable practices can result in more consistent and foreseeable long-term economic conditions, thereby reducing the volatility of financial markets including the digital asset class. Our analysis offers key implications to cryptocurrency investors.
Rosa Galvão, Domingos Santos Martinho, Nuno Nogueira, Rui Dias
The main objective of this study is to compare the efficiency levels, in their weak form, between sustainable cryptocurrencies such as Avalanche (AVAX), Cardano (ADA), Solana (SOL), Toncoin (TON) and Ethereum (ETH) (after 'The Merge'), which use efficient mechanisms such as proof-of-stake (PoS), and Binance Coin (BNB), Litecoin (LTC), Monero (XMR), Ripple (XRP), and Bitcoin (BTC) classified as unsustainable cryptocurrencies due to their excessive energy consumption based on proof-of-work (PoW). The analysed period was from 1 January 2023 to 10 December 2024. The Detrended Fluctuation Analysis (DFA) slopes reveal a significant impact of the 2023 Conflict on cryptocurrency dynamics, with distinct effects per asset. Sustainable cryptocurrencies (AVAX, ADA, SOL) demonstrated greater resilience, maintaining persistence with a brief reduction in long memory, reflecting their relative stability and attractiveness in uncertainty scenarios. In contrast, non-sustainable cryptocurrencies (LTC, XMR) transitioned from persistence to anti-persistence, indicating greater instability and speculation, associated with lower investor confidence. Assets such as TON (white noise) and XRP (consistent persistence) were less affected, suggesting intrinsic characteristics that confer resilience. Distinguishing between sustainability and other market factors is crucial to understand behaviours and build resilient portfolios, providing valuable insights for investors and researchers.
Abstract. The global transition to renewable energy requires substantial capital mobilization beyond conventional banking channels. This systematic bibliometric investigation examines 1,245 scientific publications addressing innovative financing approaches through blockchain technology, crowdfunding platforms, and green fintech solutions. Using data from the Scopus database covering the period 2018-2025, we systematically assessed publication trends, international collaboration structures, and conceptual frameworks shaping this field. Our results demonstrate remarkable expansion, with publication output increasing sevenfold between 2018 and 2024. Chinese research institutions contribute to approximately 40,2% of global scientific output, while thematic clustering reveals five main research streams. By identifying leading organizations, influential researchers, and developing concepts including asset tokenization and decentralized energy trading, this investigation provides evidence-based guidance for advancing research agendas and informing climate finance policy development.
Jerusa Alberton, Marcelo Cabús Klötzle, Marcelo Guedes Pecly, Carlos de Lamare Bastian-Pinto
This paper examines whether the release of ESG ratings for blockchains and tokens influences investor behavior in cryptocurrency markets. In October 2021, Green Crypto Research (GCR) published the first systematic ESG ratings for digital assets, addressing growing institutional demand for sustainability information. Building on Ammann et al. (2018), who documented increased flows into high-ESG mutual funds after Morningstar’s ESG rating release, we use an Event Study methodology to analyze abnormal trading volumes before and after the GCR announcement. We find no significant increase in trading activity for highly rated blockchains or tokens, providing no evidence that investors reallocated funds toward higher-rated cryptocurrencies. These findings are relevant for investors evaluating ESG integration in digital assets, for policymakers considering sustainability disclosure in crypto markets, and for researchers studying the intersection between ESG and emerging financial technologies.
Climate resilience activities in vulnerable regions often confront problems relating to the financial opacity, corruption, and the unreliable verification of outcomes. The paper proposes a blockchain system to strengthen transparency and traceability in climate adaptation funding, particularly for green infrastructure. Using smart contracts and Internet of Things (IoT)- verified geospatial data, the system assures the real-time monitoring of performance metrics and releases funds securely upon assessed performance. A hybrid PoW/PoS consensus mechanism is suggested to enable scalability while remaining energy friendly toward resource-constrained geographies. Pilot implementation among small countries is scheduled to assess the adoption and governance. The goal is for this model to restore public faith and speed climate resilience activities in places where the traditional setup fails.
The current model of Environmental, Social, and Governance (ESG) finance is fundamentally jeopardized by institutional short-termism, fragmented regulatory oversight, and a pervasive lack of verifiable impact measurement (Measurement, Reporting, and Verification, or MRV). This failure, central to the contemporary 'WEF Crisis,' necessitates a new, autonomous financial architecture. This report proposes a Dual-Stream Sustainable Tokenomics Model designed to bypass these systemic flaws by simultaneously accelerating regenerative capital flow toward all 17 Sustainable Development Goals (SDGs) and programmatically defunding low-ESG, high-polluting enterprises. The core mechanism involves the deployment of Negative Externality Tokens (NETs), which act as a programmatic Pigouvian liability, enforced by resilient Divestment DAOs (D-DAOs). This creates an autonomous, persistent financial penalty that forces polluting entities to internalize environmental costs, effectively 'starving' unsustainable capital streams . Concurrently, the issuance of Real-World Asset (RWA) tokens and Impact Credits (ICs), underpinned by Decentralized Ledger Technology (DLT) and real-time Digital MRV (dMRV) 1 , provides verifiable transparency and necessary liquidity 3 for sustainable projects across all SDGs—from poverty alleviation (SDG 1) to climate action (SDG 13). The shift to adaptive DAO 3.0 governance 4 ensures policy persistence and resilience against institutional inertia, establishing a self-sustaining financial stream decoupled from fluctuating political and financial cycles.
The global financial system has undergone a profound transformation over the past two decades, shifting from physical cash and traditional banking toward tokenized, digitally-native forms of money-including online banking, mobile payments, central bank digital currencies (CBDCs), and decentralized cryptocurrencies. While this transition has improved transactional efficiency and financial accessibility, it has also created an unprecedented layer of systemic fragility: neartotal dependency on continuous electrical power. This paper investigates the theoretical and practical consequences of a sustained global electricity disruption-a scenario made increasingly plausible by the ongoing oil supply crisis, geopolitical instability, and the mounting pressures of climate-driven energy transitions-on the functioning of the digital financial ecosystem. Drawing on economic theory, infrastructure vulnerability analysis, and social impact assessment, this study examines how such a collapse would affect tokenized monetary systems, cryptocurrency networks, AI-driven financial services, and the daily lives of ordinary users. Special attention is devoted to the populations least equipped to absorb such a shock: low-income individuals and students who rely on digital financial tools for their economic survival. The paper concludes that while a return to traditional cash-based systems is likely in the short term, long-term recovery would require a fundamental reimagining of financial infrastructure that balances technological sophistication with energy independence and physical redundancy.
José Antonio Siqueira Pontes, Clara Coelho Mangolin
Abstract: Access to financial resources by individuals, corporations, and governments must undergo impact assessments concerning human rights. Public and private governance bodies exert influence over the global financial landscape, ensuring compliance with frameworks such as the UN’s 2030 SDGs through the "Equator Principles" and the "Principles for Responsible Investment." The article aims to analyze the effects of digital tools on responsible financing, such as through the decentralization of financial systems for credit access. It explores the use of artificial intelligence (AI) integrated into "smart contracts," the consumer credit market, especially on peer-to-peer lending platforms, and other fintech solutions for achieving ESG goals like poverty reduction. However, the use of AI and "smart contracts" may also pose risks to human rights. The primary approach involves reviewing international literature to identify emerging risks. The expected outcome is a comprehensive analysis of recent trends and challenges related to corporate social responsibility in the financial sector, particularly regarding human rights in the digital era.
Open access
FinTech, Crowdfunding, Digital Finance
Legal, Health, Environmental and COVID-19 Challenges