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Exploring the Role of Digital Finance on Green Finance in the Chinese Context
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Exploring the Role of Digital Finance on Green Finance in the Chinese Context

Xin Yang (School of Economics and Management, Jiangxi Normal University, China), XI Luo (Business School, Beijing Technology and Business University, Beijing, China), Suleiman Jamal Mohammad (Accounting Department, King Talal School of Business Technology, Princess Sumaya University for Technology, Amman, Jordan), Adeeb Alhebri (Accounting Program, Applied College at Muhyle, King Khalid University, Saudi Arabia), Darina Saxunova (Faculty of Management, Comenius University, Bratislava, Slovakia), and Rita Szalai (Faculty of Management, Comenius University, Bratislava, Slovakia)
Copyright: © 2026 | Pages: 26
DOI: 10.4018/JOEUC.401691

Abstract

This study examines the S&P Global Renewable Energy Index, the MSCI Global Markets Index, and the S&P Green Bond Index of China to investigate the complex relationship between green finance and digital finance, and to demonstrate how these two mechanisms impact the adoption of renewable energy. This study further examines how digital financial technologies, such as blockchain, mobile payment systems, and big data analytics, can facilitate the acquisition of green funds for renewable energy projects. The investigation shows that digital finance dramatically lowers renewable energy project funding costs. Digital tools have sped up procedures, decreased intermediaries, and boosted risk evaluation, saving money. More people could invest in green energy with cheaper money. The authors observed that digital finance affects sustainable funding differently by region. Digital currency development is slow in rural areas but fast in cities. Digital financing has considerably decreased renewable energy risk and increased transparency.
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Introduction

Without net-zero energy output, climate change will worsen; thus, we must limit greenhouse gas emissions immediately. To accomplish zero emissions, we must enhance renewable energy sources, use less energy and carbon, transition to green businesses, and develop new low-carbon technology, electric cars, and environmentally friendly building materials and methods. This change will cause issues. These efforts need more money, better management, and more accountability and transparency. Digitization enables sustainable development and company success. China's economy prioritises quality catchup over quantity catchup. Instead of high-carbon growth, green development is now prioritized (D.-S. Xia & Kong, 2024). Web-based technologies like cloud computing and artificial intelligence boost economic growth, industrial changes, and environmental protection. Carbon dioxide emissions from the energy industry create air pollution and greenhouse gas emissions. China uses 53.8% of its energy from coal—more than any other nation. It may be because the country's odd mix of businesses uses more coal than oil and gas (Ali & Simmou, 2025; Fang et al., 2023). Chinese Communist Party leaders demanded “deepening the energy revolution based on energy resource endowment, the improvement of clean and efficient coal utilisation, and the development of a new energy system, at their 20th National Congress. This was an attempt to promote eco-friendly usage. Low-carbon energy efficiency solutions can assist in satisfying dual carbon goals and promote sustainable consumption. Without funds, the energy sector cannot advance. Green finance prioritises environmental protection and long-term economic prosperity over short-term gains. Considering environmental and resource conservation as part of economic growth is one way to integrate economic, resource, and environmental development and support modern energy system goals. Green financial support, risk management, technical innovation, and information transparency can help the energy consumption framework progress towards a low-carbon future and a new energy system (Saxunová, 2019).

Digital technology and green funding are working together to make China's transition to clean energy sources a real possibility. The literature suggests that combining digital technology with green finance has significantly enhanced risk management, financial inclusivity, and transparency. This study aimed to assess the potential of digital financial technologies, such as blockchain, mobile payment platforms, and big data analytics, in enhancing the availability of funding for renewable energy initiatives. By 2032, the global green bond market is predicted to be worth 584 billion USD, up from an estimated 345 billion USD in 2025. Many investors are interested in the three-year green financial bonds put out by the National Development Bank (NDB) of China. The bonds are issued at a rate of 1.63%. The total value of these bonds is 12 billion yuan, which is around 1.7 billion USD. By issuing green financial bonds totaling 189 billion Chinese yuan (CNY), the NDB has shown that it is committed to long-term funding. The most recent bond issue will pay for things like making infrastructure greener, using less energy, using renewable energy, and protecting the environment. Each year, the goal for saving the environment is to save 308,900 tons of normal coal and cut carbon dioxide emissions by about 697,200 tons. The bank argues that these helped activities will make a major impact in accomplishing these goals. A number of local and foreign investors were interested in the offer, which resulted to a subscription multiple of 3.08. From January to May of this year, the NDB lent out more than 200 billion CNY in green loans. This was a lot faster than the bank's overall lending growth rate.

China's shift towards cleaner energy and carbon emission reduction profoundly depends on the growth of its renewable energy industry. Specifically, this study examined the impact of digital finance and green funding on the rates of renewable energy adoption across several nations, highlighting the unequal correlation between these two forms of financing. This study also examined the influence of digital financial technology on green finance options for renewable energy projects. This area encompasses a range of technologies, including blockchain, mobile payments, and big data analytics. The paper argues that combining green financing and digital finance has improved financial inclusion, risk management, and transparency, promoting greater investor confidence in the renewable energy industry in China.

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