Digital financial technology (known today as Fintech) has already disrupted the global financial system, but can it be used directly to improve our planet’s well-being? Recent improvements to banking, customer experiences, and investment decision-making do not always consider the health of our planet, so how can Fintech be channeled and applied to address climate change? Within this report, we set out to explore how Fintech can help mobilize more capital in the pursuit of reducing greenhouse gas emissions (GHG). The inaugural Climate Fintech Report explores crucial intersections of digital financial technology and climate as a fresh perspective by which to pursue decarbonization – through nurturing an emerging digital ecosystem of climate capital catalysts.
This report is a distillation of over 100 interviews from 2020 with financial institutions, Open Banking experts, climate scientists, blockchain advocates, cleantech VCs, and climate fintech startups, among others. This is the first of what we hope to be many endeavors to better understand where areas of opportunities exist, and how to best bring them to scale. Initial findings have yielded a growing database of more than 250 “Climate Fintech” companies from around the world. We have also touched upon the geopolitical nuances of three major carbon emitting regions – Europe, the United States and China (who combined contribute to 52% of the world’s carbon emissions) to best understand what business models and technologies thrive in each market.