Pursuing the Roadmaps to SDG 13: How Climate Change Technology Moderates the nexus Between Digital Finance and Environmental Sustainability

Mubasher Zaman, Muhammad Sheraz, Quande Qin and Muhammad Zubair Mumtaz

Sustainable Development, 2025, vol. 33, issue 4, 5470-5486

Abstract: Green digital financial mechanisms, climate change technological development, and environmentally adjusted multifactor productivity through fintech and climate innovations ensure renewable energy infrastructure and climate adaptation solutions by mobilizing capital toward green projects and technologies. The study investigates the interplay between green digital finance, climate change adaptation technologies, environmentally adjusted multifactor productivity, and environmental sustainability in G20 countries from 2002 to 2021. The relationship is examined by using the Method of Moments Quantile regression (MMQR) and robustness checks performed using Bootstrap Quantile regression (BSQR), Feasible Generalized Least Squares (F‐GLS), and Panel Correlated Standard Errors (PCSE). Finally, the Dumitrescu and Hurlin (D‐H) Causality Test is performed to check the causal relationship. The outcomes reveal that green digital finance, climate change adaptation technologies, and environmentally adjusted multifactor productivity positively impact environmental sustainability. Further, the interaction term of green digital finance and climate change technologies also significantly positively impacts environmental sustainability. The D‐H causality test confirmed the bidirectional or unidirectional causal relationship, and the asymmetric causality check also validated the causal relationships among panel variables. The combination of green digital finance and climate change technologies drives environmental sustainability in G20 economies by channeling funds toward climate technologies that reduce carbon emissions, reduce vulnerability, enhance resilience, and ensure that communities cope with the adverse effects of climate change. This study suggests some fundamental policy guidelines for advancing COP‐27 commitments, which aim to ensure carbon neutrality and climate resilience by mid‐century, and SDG‐13 emphasizes taking urgent climate actions to combat its impacts in G20 nations.

Date: 2025
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https://doi.org/10.1002/sd.3420

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Persistent link: https://EconPapers.repec.org/RePEc:wly:sustdv:v:33:y:2025:i:4:p:5470-5486

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