Green finance, fintech, and environmental sustainability: fresh policy insights from the BRICS nations

Green finance, fintech, and environmental sustainability: fresh policy insights from the BRICS nations
Authors: Maxwell Chukwudi Udeagha, Edwin Muchapondwa
Journal: International Journal of Sustainable Development & World Ecology
Volume & Issue: Volume 30, Issue 6
Published: February 27, 2023

This article examines the role of green finance (GFN) and financial technology (fintech) in promoting environmental sustainability across BRICS countries—Brazil, Russia, India, China, and South Africa—over the period 1990–2020.

The study addresses the region’s ongoing reliance on fossil fuels, high greenhouse gas emissions, and untapped renewable energy potential. Using empirical analysis, the authors find that green finance, fintech, and energy innovation positively contribute to environmental sustainability, while economic growth and natural resource rents negatively affect environmental quality. Bidirectional causality is observed between CO2 emissions and green finance, fintech, and natural resource rents, whereas economic growth and energy innovation show unidirectional effects on emissions.

 The findings suggest that BRICS nations should accelerate the development of green financial products, enhance the capacity of financial institutions to offer green credit, and invest in research on innovative green finance solutions. By integrating these strategies, the study argues that BRICS countries can better achieve carbon neutrality, reduce environmental degradation, and leverage financial innovation to support sustainable development and the transition to low-carbon economies.