Are Green Bonds a new thing post pandemic?
With rising awareness towards the rising global warming, sudden change in climate and unknown natural disasters people across the globe are turning to more sustainable living and purchases. The rise in demand for such products has led various organizations and brands to switch to greener alternatives and the financial sector is not behind. Green Bonds issued first by the World bank is one such example designed specifically to support specific climate-related or environmental projects. Since then people across the globe have shown huge interest in green bonds and India is not behind.
India has seen a rise in the demand for green bonds and sustainable finance in the pandemic era. “At least a dozen Indian companies have raised money through green or sustainability-linked bonds since the beginning of 2021, doubling the amount raised in all of 2020”- Forbes .
The big question still remains if there is enough knowledge and transparency present to issue a green bond and analyze its positive results? Currently, transparency and reporting are weak in the green bond market, as it still relies on voluntary reporting. As the market grows, transparency will emerge as an increasingly important issue.
The latest technology like blockchain could be the answer to an end to end issuing and tracking of green bonds. Below are some areas in which blockchain technology could come real handy.