Application of Blockchain for Sustaining Green Finance

Abstract

Green finance is an important source for raising necessary funds for preserving/conserving the environment through developments of green projects. It is a loan raised especially for environmentally friendly activities such as biodiversity financing, optimum use of natural resources, etc. Prudent use of green finance attracts the use of digitized technologies which will facilitate prosperous accomplishment of environmental projects. One of the primary and significant digitized technology is blockchain. Further, it ensures effective monitoring of environmental projects, enhances transparency and accountability, and minimizes greenwashing risk. The bank for international settlement (BIS) has stressed blockchain for bringing transparency in usage of green finance thereby improving efficiency. Thus, the present study is an attempt to have insights on the use of blockchain for streamlining green finance. The study proposes the use of digitalized technologies for supporting and promoting green finance.