This chapter explores the intersection of climate finance, sustainable fintech, and eco-digital financial inclusion in shaping sustainable innovation among Indonesian micro, small, and medium enterprises (MSMEs) in an Indonesian context. Based on global and national literature, the first part provides a conceptual background of sustainability-oriented innovation for MSMEs, with emphasis on climate adaptation and mitigation practices such as resource efficiency, renewable energy adoption, and low-carbon solutions. Within the Indonesian context, these practices try to address the dual challenge of (i) scaling digital finance and (ii) accelerating the green transition. The analysis highlights how fintech can act as an enabling mechanism to promote climate finance, for example through providing access to green credits, reducing transaction costs, and embedding climate-aligned taxonomies into digital lending. Building on this conceptual framework, the a Political Feasibility Analysis (PFA) is applied to assess policy pathways that support climate-friendly MSME innovation, considering stakeholder interests, governance capacities, and possible trade-offs. Finally, as an empirical illustration, evidence from a 260 MSME survey is presented, showing how urban and rural firms differ in behavioural drivers of sustainable fintech adoption. By linking climate finance concepts with observation from practice, the chapter contributes for designing policies that align MSME digitalisation with climate objectives.