Transparency, efficiency, and security provided by blockchain are a major benefit of funding green projects.
Blockchain can accomplish, for instance, the issuance of green bonds by ensuring that money is directed towards their intended purpose. Green bonds, a green project-debt security issued for the specific purpose of raising funds for funding green activities, have the demerit of low reportability and transparency. Blockchain can offer proof of safe use of funds that is transparent and make green finances program more acceptable. Apart from that, blockchain also has the potential to enable peer-to-peer funding of green projects, whereby green project investment is channeled directly via digital tokens or cryptocurrencies. This enables more investors to be involved in project funding for the green economy.
