Switching to a low-carbon economy will demand significant funding of environmentally-friendly investments. Nevertheless, commonly traditional financial systems are known to experience problems like high transaction costs, information asymmetry and less transparency which limits the efficient mobilization of green capital. The chapter discusses the potential of financial technology (FinTech) to revolutionize the green credit market and institutional channels of carbon reduction. The conceptual and analytical approach incorporating the results of the literature on sustainable finance, digital financial ecosystem, and climate policy, the chapter examines how digital lending platforms, blockchain-based verification, artificial intelligence-based credit evaluation, and data-driven environmental monitoring can improve the effectiveness and reliability of the green finance.