A Mechanism for Digital Finance to Drive Green and Low-Carbon Development

Abstract

Given the global focus on green and low-carbon development and the increasing prominence of digital finance, it is particularly important to explore how to leverage digital finance to achieve these environmental goals. This study, through mechanism analysis, deeply examines how China’s digital finance promotes green and low-carbon development and elucidates the positive interaction between digital finance and the green industry. The study found that digital finance, through more flexible and efficient financial functions, alters the cost structure of carbon emissions, and reduces the risks and costs of green investments, thereby creating a cooperative green mechanism benefiting all parties, and guiding social groups toward a green and low-carbon transformation. Additionally, the rapid development of digital finance has strengthened the implementation of environmental protection policies, effectively promoted the expansion of the environmental protection industry, and established the green ethos as a mainstream concept in financial development. This study aims to provide reference perspectives and suggestions, assist policymakers in promoting the green and low-carbon development of digital finance, and offer insights into the integrated development of digital finance and the green environmental protection industry.