Between 22-24 May, the World Bank convened industry experts and innovators in Frankfurt to discuss efficient ways to meet the financing needs of the Paris Agreement
Meeting the Paris Agreement's commitments require climate-resilient, low-carbon investments at unprecedented speed and scale. The financial sector has a significant role to play in the fight against climate change, for example in terms of new innovative products.
Emerging market economies will need about $23 trillion to meet the Paris objectives. Over the next 15 years, the world will require nearly $90 trillion in new infrastructure, mostly in developing and middle-income countries, and all of it climate-resilient.
The Conference co-hosted a number of workshops on cutting edge solutions to help unlock the trillions. One such workshop was co-hosted by Stockholm Green Digital Finance, Climate Ledger Initiative (CLI), World Bank Group, Gold Standard and Climate-KIC and explored practical use cases for digital ledger technology to speed up investments at scale. This was far from the only workshop on technology driven solutions for green finance.
Throughout the conference a number of cutting edge solutions were demonstrated and discussed, from idea stage to actual product development. Solutions included everything from putting carbon markets on the blockchain to solutions for retail consumers to offset purchases with carbon credits on the blockchain. Other solutions involved helping investors identify bankable green projects to crowdfunding platform to finance solar in rural Africa.
One can without doubt conclude that financial technology innovations are increasingly coming up with much needed practical solutions to speed and scale sustainable finance. The day after the conference, the newly established Climate Chain Coalition convened 75 participants, all looking into technology solutions, to formalize working groups to drive new solutions to the market at an even stronger rate.
Digital ledger technology has arrived to stay in the world of green finance.