The Task Force considered how digital financing can support investment in climate change mitigation and adaptation.
Key highlights
- Digital financing can make it easier to raise investment funds for green projects and performance. Green bond standards and taxonomies are increasingly well established. Green Bonds are being launched around the world, such as Banco Pichincha’s in Equador. High quality data and automatic ‘smart contracts’ can dramatically reduce costs of issuing green securities.
- Big data and standardized analytical frameworks allow climate risks to be factored into investment decisions Procurement offices in the Netherlands use a digital platform DuboCalc that accurately assesses environmental costs of different projects. The platform also helps bidders to optimize their designs for sustainability.
- Scaling carbon markets: Blockchain and big data are being used to support simpler cheaper measurement, reporting, verification and trading of carbon credits. One example is AirCarbon Exchange, the world’s first blockchain based distribution and trading network for carbon credits for the airline industry.
- Renewable energy financing platforms: Digital platforms connect users and producers of energy and allow users to provide crowd-funding for green energy investments as well as drawing and contributing energy to the system.
- Automated index-based insurance. Index insurance products pay-out based on simple trigger like wind velocity or rainfall, removing the cost of expert assessment are already being piloted across Africa and Asia. Blockchain applications such as that used by Worldcovr could further reduce costs by an estimated 30-60 percent through the automation of pay-outs and verification.
