The nexus of green finance and digital banking is transforming the world financial system on the twin pillars of environmental sustainability and technological innovation. Topic modeling is utilized in this study to examine nascent trends on the basis of a corpus of around 481 records of the Web of Science database. Six leading topics are: (1) Digital Financial Inclusion and Sustainable Development, (2) Green Finance and Digital Innovation, (3) Fintech and Sustainable Financial Services, (4) Climate and Environmental Sustainability Digital Banking, (5) Blockchain and Transparency in Sustainable Finance, and (6) AI and Big Data in Sustainable Financial DecisionMaking. Digital banking is enabling financial inclusion, especially in rural villages, and supporting the United National Sustainable Development Goals (SDGs). Fintech technologies such as mobile banking, blockchain, and AI are propelling access to green financial products, transparency, and climate risk analysis. Blockchain is providing traceability of green bond issuance, while AI-based tools are offering real-time analysis of sustainability risk. Fintech innovation such as ESG-driven robo-advisors are giving access to sustainable financial services to everyone and facilitating decentralized investment in clean energy projects. Yet, issues like digital literacy deficits, cyber-attacks, and the environmental cost of blockchain mining persist. Regulatory schemes must continue to change and meet these to facilitate the promotion of inclusive access to sustainable financial services. This essay points out the necessity of harmonized ESG reporting mechanisms, AI transparency in governance, and inclusive regulation for facilitating the incorporation of sustainability in electronic banking. The findings point out the transformative potential of digital technologies in remoulding sustainable finance with significant implications for financial institutions, regulators, and academics. Subsequent work must take note of developing technology like quantum computing and decentralized finance (DeFi) to continue advancing sustainable financial innovation.
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.
This study examines whether combining Bitcoin (BTC) and Ethereum (ETH) with Indian ESG indices, specially NIFTY 100 ESG and NIFTY 100 Enhanced ESG, can enhance portfolio diversification. The analysis evaluates how digital assets contribute to sustainable investment strategies through their return dynamics, volatility behaviour, and portfolio efficiency. The study employs daily data from 2016 to 2024 and utilizes an extensive econometric framework comprising Spearman correlation, Johansen cointegration, VECM, DCC-GARCH, and Granger causality tests. Risk-adjusted performance is evaluated using Sharpe, Sortino, and Value-at-Risk (VaR) metrics. Subsequently, Markowitz’s mean-variance optimization is employed to determine the optimal asset allocations. The results indicate weak correlations and limited volatility spillovers between cryptocurrencies and ESG indices, confirming their potential for diversification. While long-run cointegration suggests equilibrium linkages, the absence of short-term causality highlights market independence. Portfolio optimisation reveals that ESG assets dominate in stability, while moderate crypto exposure enhances overall efficiency. This study fills the gap between crypto and sustainable finance with providing information on how to build resilient and risk-adjusted portfolios in an emerging market.
Technology based on distributed ledger systems (DLT), one of the best-known examples of which is blockchain, has clear applications in the functioning of capital companies, not only internally in the organisation and operation of the company itself ( ad intra ), but also ad extra , as soon as potential investors can use the technology to finance the company’s activity in the market.
Regenerative Finance emerged in response to the Great Recession of 2007-2008 and the subsequent financial crisis, which exposed the erosion of the financial system. Its foundation is on Regenerative Economics, proposing a new economic system and framework for a regenerative civilisation that will reshape the future of Finance. It contrasts with various other propositions, such as ESG, DEI, and Green Finance. This thesis aims to define Regenerative Finance and how it differs from traditional extractive Finance and investment business models. How “ReFi” challenges the habitual mindset behind the Financial industry, which prioritises maximising profits at the expense of communities, living ecosystems, and the environment, generating “a triple planetary crisis of climate change, pollution, and biodiversity loss”. How it plans to transform the financial system, addressing inequality, and setting forth regeneration. The study employed secondary data collection gathered from official sources, including the UNFCCC. The presentation is descriptive and employs thematic analysis, identifying core themes typical of social science projects. This research examines the technology substructure, which serves as an intersection between Web3, characterised by DAOs, blockchain, Decentralised Finance (DeFi), Crypto, NFTs, and tokenisation as its tools for regeneration. It explores all their technical specifications, the principles behind these innovations, implementation, and challenges. Additionally, there are Natural Capital-Backed Assets (VCM, Biochar, etc.), which function as a novel solution to preserve natural resources, employing technologies such as Tokenization. It encompasses socio-economic and political aspects, examples of ongoing ReFi projects, criticism, challenges, and/or fraud that ReFi may encounter in practice, beyond the theoretical.
Green finance and sustainable investment strategies have gained significant attention as key mechanisms to address global environmental challenges and drive sustainable development. This study employs bibliometric analysis to explore the thematic, geographical, and temporal trends in research on green finance and sustainable investments, using data from the Scopus database. The findings reveal that central themes, such as "sustainability," "green economy," and "investments," dominate scholarly discourse, with growing emphasis on emerging topics like "green technology innovation" and "decentralized finance." China, the United Kingdom, and European nations are identified as leading contributors to research in this field, with notable collaborations across regions. However, disparities in regional representation and challenges such as inconsistent ESG frameworks and perceived financial risks hinder the adoption of green finance globally. The study highlights opportunities for harmonizing global standards, leveraging technological innovations, and expanding research in underrepresented regions. These insights provide valuable guidance for policymakers, financial institutions, and researchers aiming to enhance the effectiveness of green finance and sustainable investments.
The assessment and promotion of responsible and ethical practices within the dynamic fintech banking sector are crucial, and sustainable ratings play a pivotal role in achieving these objectives. As the fintech industry disrupts traditional banking, it becomes imperative to evaluate its environmental, social, and governance (ESG) performance to effectively manage risks and maximize positive impacts. This abstract delves into the significance, challenges, and recommendations surrounding sustainable ratings in fintech banking. Although fintech and digital banking offer great potential, they also pose ESG risks. Innovations in areas like digital payments, decentralized finance, big data analytics, robo-advisory, and lending platforms reshape the financial landscape and contribute to financial inclusion, consumer empowerment, and efficiency. However, the long-term sustainability implications of these advancements remain uncertain. To address this, tailored ESG rating mechanisms are needed to assess fintech banking based on material sustainability issues. These ratings evaluate performance across key metrics such as climate action, ethical AI, data stewardship, financial inclusion, and governance. Stakeholders can leverage these ratings to identify sustainability leaders and align investments with the United Nations Sustainable Development Goals. Mainstreaming fintech sustainability ratings requires collaboration among multiple stakeholders, encompassing the establishment of reporting standards, disclosure frameworks, assurance mechanisms, and capacity-building initiatives. Challenges in this pursuit include the absence of sector-specific measurement standards, the reluctance of fintech firms to allocate resources to sustainability efforts, limited internal expertise, and concerns surrounding confidentiality and security. Overcoming these challenges necessitates the introduction of mandatory sustainability disclosure policies by regulators, the development of industry-specific reporting standards by industry associations and standard setters, and the integration of sustainability due diligence into the decision-making processes of investors. Furthermore, capacity-building programs are essential to educate fintech leaders on material ESG risks and integrate sustainability considerations into their strategic planning. Ultimately, sustainable ratings in fintech banking serve as a framework for evaluating and incentivizing responsible practices, empowering stakeholders to direct investments towards sustainable fintech innovation and fostering an inclusive and sustainable financial ecosystem.
The intersection of Environmental, Social, and Governance (ESG) investing and decentralized finance (DeFi) introduces innovative pathways for integrating sustainability into financial markets. This study conducts a comparative analysis of ESG-focused DeFi protocols, such as KlimaDAO and Regen Network, and traditional ESG investment funds, including the Vanguard ESG U.S. Stock ETF and BlackRock Sustainable Advantage Large Cap Core Fund. Using data from March 2021 to March 2023 and quantitative methods such as ordinary least squares (OLS) regression, the study evaluates financial performance, transparency, and impact assessment. Results indicate that ESG-focused DeFi protocols provide enhanced transparency and potential for higher returns but are hindered by greater volatility and regulatory uncertainty. Conversely, traditional ESG funds offer stability and robust governance frameworks but lack the real-time transparency inherent to DeFi platforms. The findings underscore the need for standardized ESG reporting and offer actionable insights for investors aiming to align sustainability goals with financial performance
Minthiva Pitchaya-Auckarakhun, Kasama Kasorn, Pornchai Jedaman, Sanya Kenaphoom
Compared to traditional financial institutions, new-generation investors prefer speculative assets like cryptocurrencies, NFTs, and DeFi platforms due to their high return potential and Blockchain appeal. This shift has resulted in increased portfolio volatility and a desire for financial independence, compelling the financial industry to adapt. The study, which uses secondary data, identifies trends in investment behavior that differ from previous generations. According to the findings, new investors are reshaping the investment landscape by leveraging technology, values-based investing with ESG criteria, and decentralized finance (DeFi). Their preference for digital platforms and AI improves accessibility and personalization, whereas DeFi opens up new possibilities and challenges. Traditional financial institutions must adopt technology and sustainability trends to remain competitive as new-generation investors reshape the investment landscape through technology, ethical investing, and decentralized finance (DeFi).
This dissertation explores the connection of two rapidly emerging and converging technological and societal trends: Decentralized finance (DeFi), exemplified by cryptocurrencies and smart contracts on one hand and decentralized renewable energy systems, such as microgrids on the other. They are linked through the energy consumption of computations necessary to run DeFi, blockchain technology that enables innovative applications such as peer-to-peer energy for renewables, and finally the trend of decentralizing two highly centralized industries. We employ a systematic literature review and conceptual research to explore previously unmapped connections between these two domains. We find that blockchain technology can be a catalyst for fiscal decentralization, which has been proven to increase renewable energy consumption. The findings provide policy recommendations, as well as insights for prosumers.
This article analyzes and compares doctrinal definitions of the concept of “green finance”, as well as related categories. The author proposes to distinguish between private law and public law approaches to defining the category under consideration. It is determined that from the perspective of a public law approach, “green” finance should be understood as social relations arising in the process of accumulation, distribution (redistribution) and use of funds from state and municipal centralized and decentralized funds of funds aimed at financial support for environmental protection, as well as the implementation of financial control in this area.
Abstract State-of-the-art macroeconomic agent-based models (ABMs) include an increasing level of detail in the energy sector. However, the possible financing mechanisms of renewable energy are rarely considered. In this study, an investment model for power plants is conceptualized, in which energy investors interact in an imperfect and decentralized market network for credits, deposits and project equity. Agents engage in new power plant investments either through a special purpose vehicle in a project finance (PF) structure or via standard corporate finance (CF). The model portrays the growth of new power generation capacity, taking into account technological differences and investment risks associated with the power market. Different scenarios are contrasted to investigate the influence of PF investments on the transition. Further, the effectiveness of a simple green credit easing (GCE) mechanism is discussed. The results show that varying the composition of the PF and CF strategies significantly influences the transition speed. GCE can recover the pace of the transition, even under drastic reductions in PF. The model serves as a foundational framework for more in-depth policy analysis within larger agent-based integrated assessment models.
In the face of escalating environmental concerns and the urgent need for sustainable development, this research article embarks on a meticulous examination of the intricate landscape of sustainable energy economics. Our comprehensive review navigates through recent advancements, challenges, and potential pathways, shedding light on the economic implications of transitioning towards sustainable energy sources.The introduction sets the stage by emphasizing the critical role of sustainable energy in mitigating climate change while simultaneously fostering economic growth. Against this backdrop, the literature review meticulously dissects existing research, providing a foundation for the exploration of recent developments.The analysis begins by scrutinizing global sustainable energy policies, dissecting their economic implications. Policies targeting renewable energy sources are evaluated for their effectiveness, laying the groundwork for a nuanced understanding of the economic ramifications of sustainable energy initiatives.Delving into the financial dimensions, the article explores innovative investment and financing models propelling sustainable energy projects. This includes an examination of public-private partnerships, green bonds, and other mechanisms that mobilize funds for the critical transition towards eco-friendly energy sources.A pivotal aspect of this comprehensive review is the scrutiny of technological innovations. Advancements in solar, wind, and other renewable energy sources are evaluated, along with an exploration of energy storage, smart grids, and decentralized systems. This section underscores the transformative potential of emerging technologies and their consequential economic impacts.Beyond the monetary considerations, our research investigates the broader socio-economic co-benefits associated with sustainable energy adoption. Job creation, poverty alleviation, and improved public health are discussed as positive externalities, contributing to a holistic understanding of the multifaceted impacts of sustainable energy initiatives.However, the research doesn't shy away from addressing challenges and potential trade-offs. Intermittency issues, infrastructure costs, and potential disruptions to existing industries are examined, providing a balanced perspective on the hurdles that must be navigated in the pursuit of sustainable energy solutions.The article further reinforces theoretical concepts through insightful case studies, showcasing regions that have successfully implemented sustainable energy strategies. These real-world examples offer practical insights into effective policy design and implementation, enhancing the applicability of the research findings.As the review concludes, it synthesizes key findings, emphasizing the necessity of a comprehensive understanding of sustainable energy economics for shaping a resilient and environmentally conscious future. The future outlook section provides foresight into potential advancements and challenges, offering practical recommendations for policymakers, researchers, and industry stakeholders navigating the complex landscape of sustainable energy.In summary, this comprehensive review encapsulates the dynamic interplay between economics and sustainability in the realm of energy. It serves as a valuable resource for policymakers and stakeholders alike, providing a roadmap towards a future where economic prosperity aligns seamlessly with environmental stewardship through advancements in sustainable energy economics.
The paper substantiates the mechanism of tokenizing currency values to modernize the national financial settlement infrastructure. This necessitated a consistent resolution of three research objectives: a) justifying the existing insurmountable limitations in the widespread adoption of central bank digital currency, particularly in Ukraine; b) clarifying the structure of such a mechanism for using tokenized assets in developing market infrastructure using the e-commerce sector as an example; c) specifying three mandatory legal and technological conditions for the circulation of respective tokenized assets. This article represents a logical and successive stage of the author’s efforts to establish a cycle of new ideas in the scientific domain regarding improving broad access to investment resources and significantly facilitating financial operations through a technologically secure procedure for tokenizing backed assets. The article continues the author’s long-standing series of publications in this area and the closely related field of platform public governance. For the first time, the article proposes a mechanism for using tokenized assets to conduct transactions in the e-commerce and digital commerce sectors with deferred payment without an upfront deposit on the Internet using an escrow account. The core component of the software solution is a digital service based on blockchain technology implemented through a decentralized information platform, e.g., the Ukrainian-originated Bitbon System platform. This service, at least during the stages of acquiring the right to conduct a transaction and its settlement, involves using a bank escrow account. The mechanism employs the methodology of asset tokenization (i.e., with an actual and legal connection to the underlying asset) using an information platform by assigning a unique digital identifier (token) in the distributed ledger of the information platform, subject to maintaining a certain amount of funds in the escrow account. Unlike the project of the Ukrainian central bank digital currency e-hryvnia, implementing the proposed mechanism does not require costly updates to the payment infrastructure in dozens of commercial banks at their own expense, nor does it necessitate additional legislative regulation. At the same time, such a model and mechanism can be used in the legal execution of almost any transaction in terms of ensuring deferred payment under a contract and can be applied in various sectors, including e-commerce, digital commerce, agricultural markets, and others.
Dr Heena Dhingra -, Dr Anant Deshmukh -, Ashish V. Mundafale
The Sustainable Development Goals (SDGs) are the critical goals for every country in the world. A stable global financial system is needed these days to satisfy its duty to boost private capital mobilization to achieve sustainable development and steady economic growth. However, several obstacles limiting such financial mobilization have been identified by scholars, practitioners, and standard setters. In recent times digital transformation and advancement, specifically in the finance sector, include a wide range of technological developments, and applications such as blockchain, the Internet of things, big data, and artificial intelligence are promised to enhance performance in the financial sector. The potential of digital applications in the finance sector to resolve critical obstacles in financing for inclusive and sustainable growth becomes evident. Financial inclusion is indisputably one of the most significant processes towards achieving the Sustainable Development Goals and FinTech is one of the best methods for these goals to be accomplished. The Fintech industry in India is rapidly expanding and the purpose of this paper is to discuss issues such as fintech drivers, shortcomings of traditional financial services, and the role of technological advancement. The paper also addresses issues relating to fintech investment and disturbance. Financial technology faces challenges such as investment management, customer management, and regulation. The paper examines the evolution of fintech in the banking sector over time. But as we are aware a country like India lacks proper infrastructure and management and the objectives of banking can’t not be attained easily. All the issues and challenges faced by the government and financial institutions have been discussed in this paper along with the important and different strategies adopted by them. The study is based on secondary data and a literature review. India has surpassed the global fintech adoption rate to promote financial transactions with the help of technology. Demonetisation and implementation of the GST (goods and services tax) have also played a major role in the adoption of financial technologies among the masses. Also, the announcement made by the government in 2017 to decrease the amount of paper currency in circulation has elevated its awareness. Blockchain is another financial technology that is being used in the industry. Out of the total “fintech” technologies, blockchain was developed for finance which is directly connected to financial institutions. The main aim of Blockchain in financial services is decentralization where we do not trust a third party to execute transactions. It includes services such as transferring funds between banks and companies. While trading in capital markets, innovative electronic trading platforms facilitate online trade and real-time transfers. Trading networks allow investors to observe the trading behavior of their peers and expert traders and to follow their investment strategies on currency exchange and capital markets. These platforms require either very little or no knowledge about financial markets. An automated financial advisor provides financial advice or online investment management with moderate minimal human intervention.
Disclosure and transparency are two critical components in the green financing sector, especially the green bond segment. Compared to green instruments like green credit, green bond issuances facilitate information dissemination and reduce information asymmetry. Still, concerns stemming from numerous macro-level and firm-level factors impede market advancement. Investors are restrained from green bond financing owing to a fear of potential greenwashing. The nascency of the market, resulting in inadequate disclosure regimes and measurement challenges, exacerbates the problem. Can we find a solution to tackle the dilemma of greenwashing and information asymmetry using emerging, sophisticated technologies? Assessing the major theoretical underpinnings, this chapter presents a comprehensive landscape of how technologies like distributed ledger technologies, blockchain, the internet of things, artificial intelligence, machine learning, and the like fit into the green debt market. While following a theoretical approach, collating research, and the green bond market developments, the authors initiate an investigation into how technology can manage disclosure biases. The assessment signifies the role of technology, specifically FinTech, blockchain, and AI technologies, in spotting greenwashing and information asymmetry.
This paper explores the transformative impact of artificial intelligence (AI), blockchain technology, and big data analytics on the sustainable finance sector. These technologies are driving significant advancements in decision-making, regulatory compliance, socially responsible investing (SRI), transparency, efficiency, risk management, financial inclusion, and the identification of sustainable growth opportunities. AI enhances predictive analysis and automates ESG compliance, fostering informed investment strategies and ensuring adherence to sustainability standards. Blockchain introduces unprecedented transparency and efficiency, particularly through smart contracts and decentralized finance (DeFi), facilitating direct funding of sustainable projects and transparent carbon credit trading. Big data analytics empower financial institutions with predictive risk management models and insights for enhancing financial inclusion and identifying sustainable investment opportunities. Through detailed examination, this study underscores how these technologies collectively support the alignment of financial investments with sustainability goals, contributing to the development of a sustainable global economy. This confluence not only streamlines operational processes and compliance but also opens new avenues for sustainable growth and investment, underpinning the financial sector's role in achieving a more sustainable and inclusive future.
This paper explores the evolving landscape of modern financial markets, highlighting the dual nature of innovation-driven opportunities and emerging systemic risks. Technological advancements such as algorithmic trading, artificial intelligence, and blockchain have enhanced market efficiency, expanded access, and transformed investment strategies. Simultaneously, globalization has deepened market interconnectivity, increasing exposure to geopolitical and economic shocks. Regulatory reforms have sought to stabilize financial systems, yet the rise of decentralized finance and digital assets presents new oversight challenges. By examining these dynamics, the paper provides a comprehensive overview of the risks and opportunities that define today’s financial environment, offering insights for investors, regulators, and policymakers navigating this complex ecosystem.
Objective : based on the analysis of financial and legal policy of certain jurisdictions, to determine the initial prospects of financial and legal development of social relations in metaverse using digital currencies. Methods : the research is based on the system of cognitive tools: first of all, formal-legal, comparative-legal, statistical methods, and the method of legal forecasting, which help to interpret the legal norms and financiallegal policy of various jurisdictions, assess the degree of current development of legislation on regulation of technologies in virtual worlds, and formulate ideas about the financial-legal regulation of public relations using digital currencies in the metaverse. Results : the study reveals that modern legislation on metaverses is at the initial stage of its formation, as in developed jurisdictions metaverse is still considered only as a future technology. The author shows the degree of popularity of the metaverse first prototypes and the growing attention of some states to the metaverse in order to develop their socioeconomic potential and consolidate international leadership in digital development. The paper points out the shortcomings of the metaverse definitions developed in doctrine and practice, and long proposes the author’s definition. It is argued that in order to fully integrate metaverse technology into a certain country, whose policy is focused on achieving (maintaining) a high rating in terms of the economy digital transformation, it is necessary to determine the currency that will be legitimately used in the metaverse in future. A conclusion is made that it is necessary to plan financial and legal policy in this area, which will largely depend on the legal regime of cryptocurrency in a particular country. It is argued that further development of the metaverse concept in Russia will depend on the results of testing the digital ruble. Scientific novelty : the paper is one of the first devoted to the convergence of metaverse and financial law, which proposes a concept for establishing full-fledged legality of digital currency in the metaverse depending on the attitude of a particular country to decentralized finance. Along with popular definitions formulated in doctrine and practice, the author presents their own interpretation of the metaverse, indicating its essential features. Practical significance : the conclusions and proposals obtained can be used to improve the mechanisms of financial and legal regulation of social relations under the emerging metaverse concept. The presented ideas are important for further research of various financial and legal aspects of metaverses’ development and functioning.