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