Role of Blockchain Technology Integration for Green Bonds Issuance with Sustainability Aspect

Abstract

Green bonds have gained significant attention in supporting sustainable development goals for achieving sustainability. During the issuance of green bonds, there are a few concerns such as standardization, greenwashing, and lack of benefits that can be gained with green bonds. However, blockchain technology is a promising solution for green bond issuance because it has already shown its impact on different finance activities. This study aims to address and analyze the role and significance of green bond issuance for meeting sustainability with blockchain technology and also suggested recommendations for future research. Decentralized application based on the Algorand blockchain and high-level architecture proposed for the issuance of green bonds is at the primary level. There is no discussion regarding standardizing the environmental data, and the number of benefits gained by the green bond is not addressed in the previously published literature. From the analysis, it has been identified that a similar framework of blockchain cannot be implemented as the geographical and environmental parameters are quite different for every nation. So, every nation needs to customize the framework according to the nation's requirements. This study is the first attempt to combine information from previously published research about green bond issuance and integration of blockchain for green bond issuance, enlightening the disruption caused in the issuance of green.