Digital Transformations: Shaping Green Finance and Sustainable Investment

Abstract

The intensive development of digital technologies and their integration into finance and investment necessitate the study of their impact on sustainable development and green finance in the context of the growing importance of environmental financial instruments. The article aims to analyse the impact of digitalisation on green finance and environmental investment. The study used several quantitative methods, including comparative analysis to assess the effectiveness of green financial instruments, analysis of statistical data to identify trends in digitalisation and the development of green finance, forecasting market changes, and correlation analysis to determine the impact of digitalisation on the development of green finance; as well as other general scientific methods of cognition, including synthesis, systematisation, and generalisation. The study's results showed that the Pearson correlation coefficient r ? 0.745 indicates a moderate positive relationship between the level of global digital transformation and the volume of green finance, confirming the primary hypothesis that digitalisation impacts increasing investment in sustainable development. The results of the study indicate that the impact of digital transformations on green finance and environmental investment is mainly characterised by the expansion of opportunities for integrating digital technologies into financial mechanisms, a systemic increase in the size of the green finance market, intensification of public policy and investment promotion, the implementation of strategies for the transition to low-carbon economies.

Keywords: digital economy, digital transformations, green economy, green finance, green trade, sustainable development.