DLT-ENABLED GREEN FINANCE: BUILDING THE FUTURE OF SUSTAINABLE INVESTMENT

Abstract

Employing improved transparency, traceability, and process automation, this article explores the transforming possibilities of Distributed Ledger Technologies (DLT) in reinventing sustainable finance. It shows how basic features of DLT-including immutability, decentralization, and smart contract capabilities-may solve present problems in green finance, especially in sectors including green bond issuing, environmental impact verification, and regulatory compliance, using analysis. This article investigates the use of DLT in constructing real-time reporting systems for sustainable investments, transparent records of fund distribution, and smart contract-based automation of compliance processes. Although scalability restrictions and regulatory concerns as well as implementation difficulties are acknowledged in this article. This article contends that the possible advantages of DLT in lowering administrative costs, improving verification procedures, and matching financial incentives with environmental goals exceed these challenges. The results imply that DLT could inspire a paradigm change in sustainable finance, building an ecosystem where financial transactions naturally support environmental sustainability, hence bridging the gap between ecological preservation and economic development.