Climate change is deeply influenced by the financial sector, particularly through the growing interest in green financing. As more investors look to fund green initiatives, the system of green finance has grown significantly. This includes raising capitals through green bonds to leverage in green energy, water conservation, sustainable land use, and waste management (Lee 2020). While green bonds promote innovation, issues around transparency and accessibility remain. Moreover, the rising popularity of green bonds has led to concerns about greenwashing where projects are marketed as sustainable but lack real environmental impact. This paper compares how India and South Korea tackle greenwashing in their green bond regulatory frameworks using a qualitative comparative analysis. Both countries have taken regulatory steps, but South Korea has introduced stricter rules, including fines for greenwashing and incentives like tax breaks for genuine green projects. When used responsibly, green bonds can effectively channel funds toward meaningful climate action.