Fintech and aluminium: Strategic enablers of climate change mitigation and sustainable mineral policy

In the context of increasingly frequent extreme weather events, exploring the role of financial technology (FT) and aluminum (AL) in reducing carbon emissions (CE) is of great significance to promote the low-carbon economy transformation. Based on the TVP-SV-VAR model, this paper attempts to evaluate the ability of FT and AL on mitigating climate change and lowering carbon footprints. The outcomes confirm that AL and FT play an essential role in inhibiting short- and long-term CE, respectively. Specifically, the widespread use of AL in zero-carbon buildings, automotive lightweight and renewable energy technologies highlight its effectiveness in decreasing energy consumption and enhancing environmental quality. Besides, the development of FT reduces unnecessary resource consumption and CE by simplifying payment methods and improving financial service efficiency. Moreover, the indirect effects of FT on CE are examined by considering the role of renewable energy (RE). The results show that FT has both positive and negative effects on CE. The positive impact means that FT can stimulate investors to increase investment in the RE industry and reduce carbon pollution. Against the background of promoting the goal of carbon neutrality, this paper can provide useful insights for policymakers to formulate effective carbon reduction policies.