CBDC and Sustainable Supply Chain Finance

This chapter examines how Central Bank Digital Currencies (CBDCs) can improve sustainable supply chain finance by increasing transparency, traceability, and environmental accountability. Supply chain finance systems need more visibility and reliable ESG reporting as global sustainability responsibilities rise. CBDC offer programmability, data security, and real-time transaction monitoring. The chapter describes how programmable CBDCs can automate ESG-compliant disbursements, link payments to environmental requirements, and reduce information gaps between firms, regulators, and financial institutions. CBDC-based audit trails can verify carbon footprints, energy use, and sustainability certifications, reducing greenwashing and paperwork fraud. CBDCs are especially important in emerging economies because supply chain finance often opaque and unreported. The chapter also covers privacy, digital platform interoperability, and ESG data governance policy and regulation.