Blockchain Tech to Scale up Green Debt Market

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    Stockholm (NordSIP) The Green Assets Wallet (GAW), a blockchain-based platform innovation and collaboration of leading capital market actors, green finance experts and technology innovators under the lead of Stockholm Green Digital Finance, was launched last week in Paris on Climate Finance Day.

    The GAW allows issuers and investors of green debt to converge and overcome existing barriers in the green debt market by providing solutions to upscale the latter to its ‘fullest potential’ and allowing for transparency and efficiency, cost-cutting for issuers and delivering investors’ trust.

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    GAW seeks to do this through three applications: 1) high impact investment opportunities, 2) the ability to efficiently and transparently access and monitor impact for investors, and 3) supporting emerging market issuers to demonstrate credentials and attract investment for green activities.

    “Our mission is to use fintech as a lever for delivering the SDGs and the Paris Agreement,” Cecilia Repinski, Executive Director of Stockholm Green Digital Finance, said in a press release. “To deliver these goals by 2030, trillions of dollars of private investment are needed. The Green Assets Wallet is one innovative solution to overcome the barriers to scale the flow of green investments.”

    “By digitalizing impact reporting and embedding this into a blockchain, the Green Assets Wallet gives investors easy, reliable impact information,” added Erika Wranegård, Fixed Income Manager with Öhman Asset Management, one of the projects partners.

    Stockholm Green Digital Finance and its partners are seeking to use the blockchain-based technology to channel capital where needs are greatest, e.g. for high impact climate and environmental projects that may otherwise have trouble finding financing.

    “It is great to see such a profound drive and action around the World Bank’s 10-year green bond anniversary. We find it both important and exciting to see the latest technological developments merge with the forces that are driving the transition to a green and sustainable economy,” SEB Head of Climate & Sustainable Finance Christopher Flensborg concluded.

    The GAW is in the process of securing more funding to “increase user friendliness, branch out into more sectors and include more impact units,” while looking towards increased integration with smart technologies for enhanced reporting and unlocking more efficiency potentials and scaling up the green bond supply.

    Other partners to the project include blockchain engineering company ChromaWay, climate research institute CICERO, SEB, Öhman, Vasakronan, Mistra, the China Energy Conservation and Environmental Protection Group (CECEP) as well as the Emerging Markets Sustainability Dialogues (EMSD) and the Emerging Markets Dialogue on Finance (EMFD).

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