The mobilization of domestic retail capital is increasingly recognized as a vital mechanism for achieving India’s ambitious net-zero carbon emissions target by 2070, with financing of Clean Development Mechanism (CDM) and renewable energy infrastructure historically dependent on institutional backing, international climate funds, and corporate debt instruments, yet modern financial technology (Fintech) platforms now offer an unprecedented path toward crowdsourcing and democratizing climate finance. This chapter provides a comprehensive, theoretically grounded synthesis of secondary literature to evaluate how Digital Financial Literacy (DFL) and multi-dimensional investor trust influence the flow of retail funds into sustainable energy projects across the Indian sub-continent, integrating frameworks from behavioral economics, technology adoption models, and sustainable development paradigms to identify a structural dichotomy within the emerging digital ecosystem. On one hand, the proliferation of the India Stack and digital payment corridors has catalyzed exceptional transactional fluency among retail market participants, while on the other hand, a critical deficit remains in specialized eco-financial literacy, as individual investors demonstrate limited understanding of carbon asset valuation, carbon credit accounting, and the unique risk-return profiles of long-gestation CDM frameworks. The chapter further unpacks systemic and psychological barriers to capital allocation, evaluating how platform cybersecurity vulnerabilities, inadequate regulatory enforcement, and institutional greenwashing systematically erode public trust, while examining regulatory architectures governed by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) to highlight friction points where policy lags behind fast-evolving digital asset tokenization. Ultimately, the chapter contributes an integrated conceptual framework designed to bridge the prevailing “intent-action gap” in sustainable retail investing, offering actionable strategic mandates for policymakers, fintech developers, and renewable energy operators.