The Role of Fintech in Unlocking Green Finance


The achievement of the Sustainable Development Goals (SDGs) and implemen- tation of the Paris Agreement will require signi!cant new investment. New !nancial technologies (“!ntech”) offer the potential to unlock green !nance technologies, such as blockchain, the Internet of Things (IoT) and big data, developed over the same timeframe as the Paris Agreement and the SDGs. This chapter outlines three broad areas for the possible application of !ntech to green !nance: blockchain applications for sustainable development; blockchain use-cases for renewable energy, decentralized electricity market, carbon credits, and climate !nance; and innovation in !nancial instruments, including green bonds. This chapter focuses on blockchain use-cases pertaining to sustainable development and renewable energy and highlights examples from Europe, which has been a leader in blockchain technology. The chapter explores the implications for developing economies in Asia and draws preliminary recommendations for policy makers interested in harnessing !ntech and blockchain for low-carbon, climate-resilient investment, and the achievement of the SDGs.