Fintech Development and the Net‐Zero Transition: Implications for Environmental Sustainability in Türkiye

ABSTRACT Türkiye plays a significant role in addressing global climate change through its economic, industrial, environmental, and energy policies. As an emerging economy, Türkiye has committed to reducing emissions by 2038 and achieving a net‐zero emission target by 2053. In this context, this study aims to provide additional policy tools to enhance environmental sustainability and reach the net‐zero target. The study examines the linkage among fintech development, energy use, economic growth, and greenhouse gas emissions for the period from 2006q1 to 2024q4. By incorporating Fourier trigonometric terms, we utilize the Fourier ADL approach for the cointegration test and the FMOLS method for long‐term coefficient estimators. The findings indicate that economic growth and energy consumption trigger greenhouse gas emissions in Türkiye. However, the impact of financial development is insignificant. Building on this finding, the study further explores the mechanisms through financial innovation in Türkiye.