Misreporting in blockchain green bonds (ECBD) undermines the credibility of green projects. Despite blockchain's transparency, issuers may exaggerate environmental impacts to attract investors, a practice known as greenwashing. The decentralized ledger ensures traceable data, but inaccurate inputs—such as overstated carbon reductions or unverified project outcomes—can distort trust. For instance, renewable energy projects might claim higher outputs without IoT-backed evidence. The Green Bond Principles advocate rigorous reporting, yet enforcement varies. Investors must demand third-party verification and real-time data integration to ensure authenticity. Blockchain's potential to curb misreporting lies in smart contracts and automated audits, but only if paired with standardized, enforceable criteria. Strengthening oversight and aligning with EU Green Bond Standards can mitigate risks and uphold genuine sustainability.