In an era defined by climate urgency and digital transformation, financial technology—or fintech—is emerging as a powerful catalyst for sustainability. Across agriculture, energy, and tourism, fintech is unlocking new pathways for inclusive growth, environmental stewardship, and economic resilience. As of 2024, global investment in climate-focused fintech surpassed $50 billion, with over 60% of fintech startups embedding environmental, social, and governance (ESG) principles into their core strategies. Yet, despite this momentum, access to tailored financial tools remains limited—especially for smallholder farmers, women entrepreneurs, and sustainable tourism operators in underserved regions.

To bridge this gap, UNDP Egypt’s Accelerator Lab launched a global initiative to map emerging signals of change in green fintech. By leveraging futures research—a field of study that explores potential future developments and their implications—and horizon scanning—identifying potential future trends, risks, or opportunities—this effort identifies scalable innovations that can drive climate-resilient development across the globe.

Futures thinking: a foundation for green fintech

Futures literature offers a rich foundation for understanding how fintech can shape sustainable development. Publications such as the Journal of Futures Studies and the European Journal of Futures Research have explored how fintech can promote green investments, enhance financial inclusion, and support socio-economic resilience—particularly in rural and marginalized communities.

Key insights from this body of work include:

• Promotion of Green Investments: Technologies like blockchain and AI are enabling transparent, efficient green financing, making it easier for investors to support sustainable projects.
• Enhanced Financial Inclusion: Mobile banking, microfinance, and digital insurance products are expanding access to financial services for underserved populations, including smallholder farmers and rural communities.
• Support for Smallholder Farmers: Tailored financial products—such as weather-indexed insurance and low-interest loans—are helping farmers manage risk and improve productivity.
• Economic Empowerment of Women: Gender-sensitive financial tools and literacy programs are empowering women, particularly in rural areas, to participate more fully in the economy.
• Improved ESG Reporting: Fintech is enabling real-time, accurate ESG data collection, helping companies meet regulatory requirements and track sustainability performance.
• Support for the SDGs: From digital payments to green bonds, fintech is contributing to multiple Sustainable Development Goals by incentivizing environmentally and socially responsible behavior.

Insights from COP28: mapping global signals

To deepen global understanding of fintech’s role in green sectors, UNDP Egypt’s Accelerator Lab, in partnership with the “Refuturism” Initiative, hosted a panel at COP28. The discussion focused on identifying global signals of change in fintech across agriculture, energy, and sustainable tourism.

Agriculture: fintech for food security and rural resilience

• Technological Signals: Online lending platforms and crowdfunding are emerging as alternative financing models, offering smallholder farmers access to capital without traditional intermediaries.
• Social Signals: There’s a growing trend of women-led agribusinesses in rural areas, highlighting the need for gender-responsive financial products.
• Political Signals: Data aggregation for policymaking and water-use regulations are becoming central to sustainable agricultural governance.
• Economic Signals: Smart contracts and incentive-based financial products are promoting sustainable farming practices and improving economic viability.

Energy: decentralized, digital, and clean

• Technological Signals: Smart energy management systems are optimizing consumption and reducing waste, paving the way for a more sustainable energy future.
• Social Signals: Community-based renewable energy initiatives and digital energy literacy campaigns are empowering citizens to participate in the energy transition.
• Political Signals: Global carbon accounting systems and incentives for clean technologies are shaping policy frameworks for decarbonization.
• Economic Signals: Blockchain-enabled peer-to-peer energy trading is decentralizing energy markets and encouraging local investment in renewables.

Sustainable tourism: fintech for eco-conscious travel

• Technological Signals: Blockchain-based supply chain tracking is ensuring transparency and sustainability in tourism services.
• Economic Signals: Financial tools that reward recycling, waste reduction, and resource reuse are promoting sustainable practices in the tourism industry.
• Political Signals: Legal frameworks for cross-border fintech services and smart contracts are facilitating seamless, sustainable tourism operations.
• Social Signals: Carbon-offset payment options and incentives for eco-friendly choices are encouraging tourists to make responsible decisions.

Challenges and opportunities in the sector

While the potential of fintech in green sectors is immense, several challenges must be addressed to unlock its full impact:

• Regulatory Barriers: Inconsistent regulations across regions can hinder the deployment of fintech solutions.
• Data Privacy: Ensuring secure and ethical use of data is critical, especially in rural and vulnerable communities.
• Standardization of ESG Metrics: A lack of standardized metrics makes it difficult to compare and evaluate sustainability performance.
• Infrastructure Gaps: Limited digital infrastructure in remote areas can restrict access to fintech services.
• Financial Literacy: Building user capacity to understand and use fintech tools is essential for long-term success.

A call to action for policymakers and practitioners

The signals are clear: fintech is not just a tool for financial innovation—it is a lever for systemic change. From AI-powered agricultural finance to blockchain-enabled energy trading and sustainability-linked tourism incentives, fintech is reshaping how green sectors operate and grow. These innovations are not only enhancing efficiency and transparency but also democratizing access to financial resources for those who need them most.

As the world races toward climate goals and the 2030 Sustainable Development Agenda, it is imperative to harness these emerging fintech trends. Policymakers, investors, entrepreneurs and development practitioners must collaborate to create enabling environments that support inclusive, tech-enabled sustainability.

By mapping and acting on global signals of change, we can build a greener, more equitable global economy—one where smallholder farmers, women entrepreneurs, and eco-conscious travelers are empowered to thrive.