Climate change and digital finance: A review

Digital finance, or the use of digital technologies in financial services, has the potential to contribute to climate change mitigation and adaptation. This is because digital finance has the potential to enable transactions previously difficult due to informational and transactional frictions, encourage greener behavior, and promote resource efficiency. In this review, we selectively examine the implications of digital finance for climate change, particularly in the areas of climate finance, green innovations, and green production and consumption. We also discuss available empirical evidence and provide implications for further research.