This discussion paper explores how the convergence of green finance, digital technology, and verified impact data could close the persistent funding gap for climate, biodiversity, and sustainable development. While labelled (green, blue, etc.) bonds have become a cornerstone of sustainable finance, they remain costly, complex, and often inaccessible to smaller issuers — leaving many viable projects unfunded.
Digital bonds, issued and managed on distributed ledger technology (DLT), if integrated with digital measurement, reporting and verification (dMRV) can make financing more efficient, transparent, and trustworthy. Through tokenisation, smart contracts, and verifiable impact data, they reduce costs, enable broader participation, and strengthen integrity — paving the way for a next of impactful debt instruments that link efficiency with credibility.
