Chapter 20

How to Trust Green Bonds

Blockchain, Climate, and the Institutional Bond Markets

Owen Sanderson,    GlobalCapital, London, United Kingdom

Abstract

Green bond markets are growing in size and sophistication, but the standards of verification and reporting lag behind. This reflects a tension between encouraging the market and establishing its credibility. Issuers and investors in the green bond market cannot easily prove that their work has reduced carbon emissions, and market convention means green financing costs the same as its conventional equivalent. Blockchain technology may solve some of these problems. As a means for creating trust, traceability, and verification, it can be applied to tracing carbon savings through green lending ...

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