Green Fintech Ecosystems: How Digital Finance Accelerates Decarbonization and Sustainable Investment in the Era of Tech Disruption

The traditional financial system often fails to mobilize green investment due to information asymmetry, trust deficits, high transaction costs, and week ESG disclosures. Recent literature affirms that biodiversity and digital finance significantly catalyzing sustainable development and low carbon economy. The chapter aims outlines theoretical framework considering three components including technological innovation (IoT, AI, and BCT), regulatory framework, and engagement of multiple stakeholders using institutional theory. The proposed theoretical framework explains how proposed pillars drive the maturity of green fintech ecosystems in the era of tech disruption which significantly accelerates decarbonization. Effective and efficient green fintech ecosystems significantly influence IoT-based emissions monitoring, innovations such as blockchain-enabled carbon markets, tokenized green bonds, ESG analytics, digital crowdfunding, and AI-driven credit scoring. Furthermore, this chapter outlines the potential associated risks and challenges, digital exclusion, data privacy concerns, and uncertainty of regulatory structure due to rise of digital greenwashing. The conceptual model presented provides a roadmap for governments, policymakers, organizations, investors, innovators, and other potential stakeholders in seeking to leverage fintech as a strategic instrument for decarbonization and sustainable economic transformation.