This systematic literature review (SLR) investigates the nexus between financial inclusion and green economic growth, synthesizing evidence from 60 Scopus-indexed studies published between 2015 and 2025. The review adopts a thematic approach, grounded in theories such as Sustainability Transition Theory, Institutional Theory, and Financial Intermediation Theory; to explore how inclusive financial systems contribute to environmental sustainability and low-carbon economic development. The findings reveal that financial inclusion promotes sustainability and green economic growth by enhancing access to capital for eco-friendly investments and supporting the adoption of renewable energy. Fintech emerges as a pivotal driver, facilitating the development of green finance through innovation, increased financial efficiency, and broader financial accessibility. Likewise, financial literacy plays a vital role, empowering individuals and firms to make informed, environmentally conscious financial decisions and investments. However, the relationship between financial inclusion and carbon emissions is found to be mixed and context-dependent. While digital financial inclusion can reduce emissions by fostering green innovation, unregulated financial expansion may contribute to environmental degradation, particularly in carbon-intensive sectors. This review identifies research gaps, including limited geographic diversity, lack of standardized metrics, and under-explored policy dimensions. It calls for more interdisciplinary, context-sensitive, and policy-relevant research to fully understand and leverage the potential of financial inclusion in accelerating the transition toward a green economy.
Farah et al. (Tue,) studied this question.