Financial technology (FinTech) and green economy synergies for climate resilience and net-zero goals: evidence from G20 countries

Abstract Climate change and environmental degradation pose significant challenges to global sustainability, necessitating a transition to a green economy. This study investigates the dynamic impact of the sustainable green economy index on ecological sustainability, with a specific focus on financial technology (FinTech) in strengthening green economic policies in G20 economies from 2010 to 2022. The research employed second-generation econometric panel methods, the two-step Sys GMM, which are robust through Driscoll-Kraay (D-K), along with bootstrap panel quantile regression and two-stage least squares (2SLS). The empirical findings suggest that a sustainable green economy and FinTech significantly reduce the ecological footprint, thereby contributing to global climate sustainability goals. This study further explores the three key dimensions of the green economy, natural resource sustainability, green social equity, and green economic opportunities, and their distinct roles in reducing ecological footprints. The findings demonstrate that each dimension is crucial for reducing environmental degradation, supporting Targets 13.2 and 13.3 of the UN Sustainable Development Goals (SDGs). Green economy dimensions, such as natural resource sustainability, green social equity, and green economic opportunities, have significantly improved environmental sustainability by lowering the EF. Furthermore, the moderating and interaction terms of the green economy dimensions confirm that FinTech acts as a catalyst to amplify the environmental benefits of each sustainable green economy dimension. It highlights how FinTech-driven green economic policies can enhance national and institutional abilities to mitigate climate change. This study contributes to SDG 13 (Climate Action) and aligns with COP28 by providing methods for incorporating sustainable economic policies into national climate strategies, enhancing resilience against climate-related issues, and encouraging financial innovation for a sustainable future.