Green Digital Finance and Sustainable Development Goals

Acknowledgments
Introduction
Contents
About the Editors
Part I Prerequisite for Facilitating Green Digital Financing
1 Regulatory and Legal Framework for Promoting Green Digital Finance
1.1 Introduction
1.2 Historical Background and Synergy with the United Nations Agenda
1.3 The Concept of Green Digital Finance
1.4 Regulation and Policy Framework of Green Digital Finance
1.4.1 Digital Ecosystem/Platforms
1.4.2 Machine Learning and Artificial Intelligence
1.4.3 Big Data
1.4.4 Blockchain Technology and Cryptocurrency
1.4.5 Internet of Things
1.5 Major Stakeholders of the Regulatory and Policy Framework
1.5.1 Private Sector and ESG Reporting
1.5.2 International Framework and Response to Green Digital Finance
1.6 Private Initiatives and Frameworks on Green Digital Finance
1.6.1 Green Digital Finance Alliance (GDFA)
1.6.2 The Network of Central Banks and Supervisors for Greening the Financial System (NGFS)
1.6.3 The International Capital Market Association (ICMA)
1.6.4 Financial Centres for Sustainability (FC4S)
1.6.5 International Development Finance Club (IDFC)
1.6.6 National Efforts
1.7 Conclusion and Policy Direction
1.7.1 Clarity of Concept/Taxonomy/Standardization
1.7.2 Data Collection—Information Symmetry
1.7.3 Addressing Potential Regulatory Risks and Challenges
1.7.4 Mitigating the Risk of Green Digital Finance
1.7.5 International Convergence/Platform
1.7.6 Advocacy and Capacity Building
1.7.7 Consumer Protection
References
2 Current State of Green Digital Financing and the Associated Challenges
2.1 Introduction
2.2 The Importance of Digitalization in Green Finance
2.2.1 Benefits of Digitalization on the Various Stages of Green Lending
2.3 Overview of Common Digital Practices Adopted by Green Finance
2.3.1 Big Data, Machine Learning, Artificial Intelligence, and Cloud Computing
2.3.2 Mobile Money for Easy Payments with or without a Banking Account
2.3.3 Peer-to-Peer Lending and Crowdfunding Platforms Supporting Green Digital Financing
2.3.4 Blockchain Technology Offering Secure and Transparent Transactions Enables Innovative Solutions to Green Financing
2.4 Challenges Associated with Financing the SDG
2.5 Challenges Associated with Green Digital Financing
2.5.1 Fintech’s Risks and Unintended Consequences
2.6 Policy Recommendations to Scale Green Digital Financing
2.7 Conclusions
References
3 Assessing the Risks Associated with Green Digital Finance and Policies for Coping with Them
3.1 Introduction
3.2 Scope of Green Digital Finance Applications
3.3 Environmental Risks
3.3.1 Risks
3.3.2 Solutions
3.4 Crypto Asset-Related Risks
3.4.1 Risks
3.4.2 Solutions
3.5 Alternative Finance Risks
3.5.1 Risks
3.5.2 Solutions
3.6 Risks Related to Automated Investment Advice
3.6.1 Risks
3.6.2 Solutions
3.7 Crime-Related Risks
3.7.1 Risks
3.7.2 Solutions
3.8 Conclusions and Policy Recommendations
References
4 Role of Governments in Enhancing Green Digital Finance for Meeting the SDGs
4.1 Introduction
4.2 Challenges in Digital Finance-FinTech and Potential of Green Digital Finance
4.2.1 The Benefits of Finance Technology
4.2.2 The Challenges in Digital Finance-FinTech to Unlock Green Finance
4.2.3 Potential Impacts of Green Digital Finance
4.3 Challenges of Green Digital Finance and Industry Responses
4.3.1 The Challenges of Green Digital Finance
4.3.2 Industry Responses to the Problems of Green Digital Finance
4.4 Priorities in Policy Responses to the Problems of Green Digital Finance
4.4.1 Theoretical Context
4.4.2 Primary Government Actions to Promote Green FinTech
4.5 Conclusion and Policy Recommendations
References
Part II Recent Progress in Green Digital Finance in Asia and Europe
5 Identification of Critical Success Factors for Developing the Green Digital Financing Market in Iran
5.1 Introduction
5.2 Literature Review
5.3 Research Methodology
5.4 Empirical Findings and Discussions
5.4.1 TAM Results
5.4.2 ISM Results
5.5 Conclusions and Policy Recommendations
References
6 Developing FinTech Ecosystems for Voluntary Carbon Markets Through Nature-Based Solutions: Opportunities and Barriers in ASEAN
6.1 Introduction
6.2 The Scope for Nature-Based Solutions in ASEAN
6.2.1 Nature-Based Solutions as a Tool to Mitigate the Environmental Impact of Industrial Activities
6.2.2 Carbon Credits Generated by Nature-Based Solution
6.2.3 Potential Environmental Assets That Could Produce Carbon Credit in the Region
6.3 Challenges and Opportunities with the ASEAN NBS Carbon Market
6.3.1 Barriers to Unlock the Potential of ASEAN NBS Carbon Market
6.3.2 NBS Carbon Market Initiatives in ASEAN and Singapore CIX
6.3.3 Fintech Opportunities in Carbon Exchange Markets and Providing NBS Offsetting Capacity
6.4 Technology Landscape for Carbon Trading Exchanges and Offsetting Mechanisms from NBS
6.4.1 Technology Utilization for Carbon Trading
6.4.2 Geospatial Analytics: Spatial Data Collection Using Satellite Images
6.4.3 Green API and Open Data for Carbon Offset
6.4.4 Using AI for Carbon Pricing
6.4.5 B2B Transaction Management by Establishing Carbon Exchanges Through Blockchain Technology and Others
6.4.6 Startup and FinTech Business Models Operating in VCMs Based on NBS
6.5 Policy Implications
6.5.1 Barriers: Creating an Ecosystem with the Right Infrastructure, Regulation, Innovation, and Human Resources
6.5.2 Pricing and Monetization Challenges
6.5.3 Technology and Cross-Nation Interoperability Challenges
6.6 Conclusion
References
7 Facilitating Green Digital Finance in Bangladesh: Importance, Prospects, and Implications for Meeting the SDGs
7.1 Introduction
7.2 Importance of Green Digital Finance
7.2.1 Existing Literature
7.2.2 Bangladesh Context
7.3 Green Financing in Bangladesh: Some Stylized Facts
7.3.1 Total Direct Green Finance
7.3.2 Bangladesh Bank Refinance Scheme
7.3.3 Share of Green Finance by Category
7.4 Case Studies
7.4.1 Switzerland
7.4.2 Netherlands
7.4.3 Germany
7.4.4 South Africa
7.4.5 China
7.4.6 Kenya and Brazil
7.4.7 Lessons Learned
7.5 Facilitating Green Digital Finance in Bangladesh
7.5.1 Government and Governance
7.5.2 Involuntary Penalties
7.5.3 Cyber Security
7.5.4 Microfinance Issue
7.5.5 Collaboration Process
7.6 Conclusion and Policy Recommendations
References
8 The Role of Green Digital Finance in Achieving Sustainable Development Goals in China’s Belt and Road Initiative
8.1 Introduction
8.2 Global Environmental Governance
8.3 Sustainable Development Goals and the BRI
8.4 Green Digital Finance
8.5 Central Bank Digital Currency
8.6 Role of Technology Companies and Banks
8.7 Performance
8.8 Policy Recommendations
8.9 Conclusion
References
9 Microenterprises, Financial Innovation and Green Practices: Qualitative Case Studies from Finland
9.1 Introduction
9.2 Cases Studies
9.3 Bankify
9.3.1 Business Focus
9.3.2 Financial Innovation
9.3.3 Green Practices
9.3.4 Services by Bankify
9.3.5 Use Cases of Bankify’s Services
9.4 Cooler Future
9.4.1 Business Focus
9.4.2 Financial Innovation
9.4.3 Green Practices
9.5 ReceiptHero
9.5.1 Business Focus
9.5.2 Financial Innovation
9.5.3 Green Practices
9.6 Conclusions and Policy Implications
References
10 Analytical Assessment of Green Digital Finance Progress in the Republic of Georgia
10.1 Introduction
10.2 Green Digital Finance in Georgia
10.2.1 Green Digital Bonds and Securities
10.2.2 E-Money
10.2.3 Cryptocurrencies
10.3 Conclusion and Policy Recommendations
References
11 Mapping the Current Practices and Patterns of Green Digital Finance in India and the Way Forward
11.1 Introduction
11.2 Status of Green Digital Finance in India
11.2.1 Investment Requirements
11.2.2 Green Digital Finance Infrastructure in India
11.3 Practical Applications of Green Digital Finance in India
11.4 Green Digital Financing in India Challenges and Barriers
11.5 Solution to Challenges
11.6 Role of Green Digital Financing on Green Growth Indicators
11.7 Green Digital Financing—A Step Toward Sustainable Development Goals
11.8 Conclusion and Policy Implications
11.8.1 Policy Implications
11.9 Annexure
References
12 Current Status and Challenges of Green Digital Finance in Korea
12.1 Introduction
12.2 Green Digital Finance
12.2.1 Digital Finance
12.2.2 Green Finance
12.2.3 Green Digital Finance
12.3 New Deal Policy and Green Finance in Korea
12.3.1 Digital New Deal
12.3.2 Green New Deal
12.3.3 New Deal Fund and Green Finance in Korea
12.4 Conclusion and Policy Recommendations
References
Part III Role of FinTech and Financial Innovations in Scaling up the Green Digital Finance
13 Distributed Ledger Technology and Climate Finance
13.1 Introduction
13.2 Distributed Ledger Technology
13.2.1 Technological Background
13.2.2 Sustainability Initiatives and Networks
13.3 DLT-Based Applications in Climate Finance
13.3.1 Decentralized Finance
13.3.2 Asset Management
13.3.3 Measurement, Reporting and Verification
13.3.4 Tokenization
13.3.5 Other
13.4 Conclusion and Policy Implications
Appendix
References
14 The Potential Role of Fintech and Digital Currency for Islamic Green Financing: Toward an Integrated Model
14.1 Introduction
14.2 FinTech, Digital Currency, and Green Finance
14.3 Examples of FinTech and Digital Currency for Green Financing
14.4 Concept and Importance of Islamic Green Finance
14.5 Traditional Islamic Contract for Green Finance
14.6 Literature of FinTech, Digital Currency and Islamic Green Finance
14.7 Proposed FinTech and Digital Currency for Islamic Green Financing
14.8 Significance and Challenges of Proposed Integrated FinTech and Digital Currency for Islamic Green Financing
14.9 Conclusion and Preliminary Policy Recommendations
References
15 A Framework for Digitizing Green Bond Issuance to Reduce Information Asymmetry
15.1 Introduction
15.2 Literature Review
15.2.1 Asymmetrical Information in Conventional and Green Bonds
15.2.2 Green Bonds in Blockchain
15.3 The Framework of Green Bonds Issuance Based on Blockchain Technology
15.3.1 Participants in a Green Bond Market
15.3.2 The Process of Green Bonds Issuance
15.3.3 Smart Contract of Green Bond
15.3.4 Security of Green Bonds
15.4 Digitalization of Green Bonds to Minimize Information Asymmetry
15.5 Discussion
15.6 Conclusion and Policy Recommendations
References
16 Role of Banks and Other Financial Institutions in Enhancing Green Digital Finance
16.1 Introduction
16.2 Greening of the FinTech Landscape
16.3 Challenges
16.4 Opportunities
16.4.1 Green FinTech in Banks and Other Financial Institutions
16.4.2 Behavioral Nudging to Push Demand
16.4.3 Targeting the Bottom of the Pyramid with Microfinance Institutions
16.4.4 Promoting Impact Investing
16.4.5 Blockchain for Financing
16.4.6 Blockchain for Data
16.4.7 Artificial Intelligence as a Credit Facilitation Tool
16.4.8 Embedding SDG Data
16.5 Recommendations
16.5.1 For Banks and FIs
16.5.2 For FinTech Service Providers
16.6 Conclusion and Policy Recommendations
References
17 Roles and Tasks of Peer-to-Peer Lending Platforms in Activating Green Finance
17.1 Introduction
17.1.1 Background and Concept of Emergence of P2P Lending Platforms
17.1.2 Comparison Between P2P Lending and Crowdfunding
17.2 Korea’s P2P Lending Platform Status and Legal System
17.2.1 Status of P2P Lending Platforms in Korea
17.2.2 Comparison of Overseas P2P Lending Brokerage Platform Models
17.2.3 Overview of the Online Investment Linked Financial Business Act
17.3 Advantages and Disadvantages of P2P Lending Platform for Activation of Green Finance
17.3.1 Advantages of P2P Lending Platform
17.3.2 Disadvantages of P2P Lending Platform
17.4 Role of P2P Lending Platform for Activation of Green Finance
17.4.1 Causes of Sluggish Greenhouse Gas Reduction and the Traditional Financial Industry
17.4.2 Issuing Green Bonds Through Digital Platforms
17.4.3 Financing of Eco-Friendly Startups
17.4.4 Construction of Green Industry Big Data Through P2P Platform
17.4.5 Examples of P2P Lending Platform for Activation of Green Finance
17.5 Challenges of P2P Lending Platforms for Activation of Green Finance
17.6 Conclusion and Policy Recommendations
References