The recent article warning against the seductive charm of the so-called ‘green halo’ claims that banks and bondholders are now paying the price for feel-good funding gone wrong. This sweeping generalisation misrepresents both the purpose and promise of green finance, and distracts from the real issue — a failure of ethical conduct by specific individuals, promoters in this case.To suggest that the financial troubles surrounding Gensol and its affiliate BluSmart represent the inherent risk of green investing is to conflate targeted misgovernance with the legitimacy of an entire financing framework. What unfolded in this case is not the fallout of an idealistic push towards sustainability. It is the fallout of what appears to be intended misconduct by promoters, who allegedly diverted investor and lender funds towards personal luxuries while providing misleading documents to rating agencies and other stakeholders.
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