Unveiling the Potential and Challenges of Green Finance Empowered by Blockchain

Abstract

This research delves into integrating blockchain technology in green finance, uncovering its potential for amplifying transparency and efficiency in sustainable investments. It fills a void by elucidating blockchain’s role within environmental and financial contexts and examining pragmatic applications under the Paris Climate Agreement. The study underscores how profoundly transformative blockchain can be, notably impacting energy distribution, waste management, and water resource monitoring. The research additionally emphasises the impact of blockchain on tokenisation strategies within the green bond market, a phenomenon that promotes liquidity and accessibility. It acknowledges promising opportunities and identifies challenges, such as funding gaps and regulatory structures prevalent in the renewable energy sector. The study highlights the need for customised regulations and an international framework to unleash blockchain’s potential in sustainable finance.

Keywords: Blockchain, Green Finance, Tokenisation, Sustainable Development, Distributed Ledger Technologies, Regulatory Frameworks.

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