1. BITBILIHome
  2. Article

European Investment Bank embraces blockchain for climate bond

• 103 views

TL;DR Breakdown

  1. The European Investment Bank (EIB) has launched a Climate Awareness Bond, its first-ever digital bond using blockchain technology.
  2. The bond utilizes the so|bond platform developed by Crédit Agricole CIB and SEB, featuring the Proof of Climate awaReness (PoCR) protocol.
  3. The PoCR protocol incentivizes nodes to improve their infrastructures’ environmental footprint, linking rewards to reduced environmental impact.

Description

In a groundbreaking development in sustainable finance, the European Investment Bank (EIB) has launched a green bond that embraces blockchain technology, specifically engineered to foster climate action. This marks a historic first for the bank, turning towards digitization to advance its environmental agenda. This Climate Awareness Bond, worth roughly $120 million, runs on an environmentally … Read more

In a groundbreaking development in sustainable finance, the European Investment Bank (EIB) has launched a green bond that embraces blockchain technology, specifically engineered to foster climate action.

This marks a historic first for the bank, turning towards digitization to advance its environmental agenda. This Climate Awareness Bond, worth roughly $120 million, runs on an environmentally cognizant platform, presenting a unique confluence of finance and technology.

Innovative use of blockchain technology

The bond’s unique feature lies in its use of the so|bond platform, a brainchild of Crédit Agricole CIB and SEB, launched in April 2023.

Built on blockchain, the platform employs a novel Proof of Climate awaReness (PoCR) protocol, ensuring energy consumption comparable to non-blockchain systems.

Moreover, it incentivizes nodes to constantly enhance their infrastructure’s environmental footprint, thereby marrying technological progress with sustainability.

This remuneration system, tied to each node’s environmental impact gauged through the Life Cycle Assessment ISO standard, ensures that the lesser the footprint, the greater the reward.

This pioneering effort shows the European Investment Bank’s dedication to using innovative technologies for promoting sustainable practices. The so|bond platform’s operators are Crédit Agricole CIB, CACEIS, and SEB, with the former overseeing the new digital bond’s safekeeping.

Green finance meets technological evolution

EIB Vice-President Ricardo Mourinho Felix celebrated this monumental moment as another stepping stone in EIB’s path towards sustainable finance. The bank’s commitment to green finance is evident in this innovative move.

In the words of Pierre Gay, the Global Head of Crédit Agricole CIB’s Global Markets Division, EIB’s pioneering approach aligns with their commitment to address inefficiencies in primary market processes in a sustainable fashion.

Adding to the sentiment, Anna Sjulander, Global Head of SSA DCM at SEB, noted that the bond’s introduction signaled progress in combining innovation and climate-smart solutions.

Ben Powell, SEB’s Global Head of Sustainable DCM, emphasized that their blockchain platform was built with an environmentally conscious approach, directly addressing concerns over high energy consumption in financial sector blockchain deployments.

Arnaud Delestienne, LuxSE Director of International Capital Markets, considered this bond a significant stride towards digitalizing capital markets, reflecting a strong focus on environmental consciousness.

He expressed support for the novel initiative, marking it as a successful addition to the Luxembourg Green Exchange platform.

The EIB’s move to embrace blockchain for a climate bond marks a decisive step towards integrating financial innovation with environmental stewardship.

It presents a unique precedent for other institutions looking to adopt similar strategies, thereby pushing the boundaries of sustainable finance into uncharted territories. The banking industry is poised for a paradigm shift, where blockchain technology goes hand in hand with climate awareness.

As the European Investment Bank demonstrates, the future of finance lies in a unique marriage of technology and sustainability, pointing the way towards a greener, more sustainable future.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:European Investment Bank embraces blockchain for climate bond

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年6月23日 01:17
Next 2023年6月23日 04:10

Related articles

  • Coinbase CEO reveals SEC’s controversial demand to delist cryptocurrencies

    TL;DR Breakdown Coinbase disclosed that the SEC requested the suspension of trading in all cryptocurrencies except Bitcoin before filing a lawsuit against the company. The SEC alleges that Coinbase violated securities laws by allowing unregistered trade in certain digital tokens. Coinbase and the SEC are engaged in legal battles, with Coinbase defending its actions and seeking to dismiss the complaint. Description Coinbase, the largest cryptocurrency exchange in the United States, recently disclosed that the U.S. Securities and Exchange Commission (SEC) had requested the suspension of trading in all cryptocurrencies except bitcoin prior to initiating legal action against the firm. In an interview with the Financial Times, Coinbase CEO Brian Armstrong revealed that the SEC’s request came … Read more Coinbase, the largest cryptocurrency exchange in the United States, recently disclosed that the U.S. Securities and Exchange Commission (SEC) had requested the suspension of trading in all cryptocurrencies except bitcoin prior to initiating legal action against the firm. In an interview with the Financial Times, Coinbase CEO Brian Armstrong revealed that the SEC’s request came before the regulatory body filed a…

    Article 2023年7月31日

  • Apple’s Vision Pro headset woes exposed – Details

    TL;DR Breakdown Apple’s Vision Pro headset production forecasts have been significantly reduced due to high costs and technical challenges of micro OLED displays. These displays are crucial for providing immersive experiences but are difficult to mass-produce, leading to prohibitive costs. Sony, the current producer of these displays, is reluctant to increase production, creating opportunities for rivals Samsung and LG Display. Description The Apple Vision Pro headset finds itself under the industry microscope as a consequence of Apple’s recent drastic reduction in its production forecasts. Originally aiming for a sales target of 1 million units in its first year, Apple has now revised its 2024 expectations to a sobering 400,000 units. The spotlight has turned onto the … Read more The Apple Vision Pro headset finds itself under the industry microscope as a consequence of Apple’s recent drastic reduction in its production forecasts. Originally aiming for a sales target of 1 million units in its first year, Apple has now revised its 2024 expectations to a sobering 400,000 units. The spotlight has turned onto the headset’s premium-priced micro OLED displays, known…

    Article 2023年7月8日

  • U.S. banks lose over $1 billion – How’d that happen?

    TL;DR Breakdown U.S. banks spent over $1 billion on severance costs in H1 2023 due to overexpansion during COVID-19. Goldman Sachs, Morgan Stanley, and Citigroup were among the hardest hit, spending millions on staff reductions. Industry leaders are divided over whether more layoffs will be needed as the year progresses. Description A recent financial shock has rocked Wall Street as U.S. banks have tallied up over $1 billion in severance costs in the first half of 2023. This financial hit signals the high price of rectifying aggressive overexpansion during the COVID-19 pandemic. The billion-dollar payout Among the banking giants bearing the brunt of these costs are … Read more A recent financial shock has rocked Wall Street as U.S. banks have tallied up over $1 billion in severance costs in the first half of 2023. This financial hit signals the high price of rectifying aggressive overexpansion during the COVID-19 pandemic. The billion-dollar payout Among the banking giants bearing the brunt of these costs are Goldman Sachs, Morgan Stanley, and Citigroup. Goldman Sachs, which has felt the sting of a slowdown…

    Article 2023年7月21日

  • CoinEX restarts operations with a new wallet system

    TL;DR Breakdown CoinEX has announced the restart of its services using a new wallet system after its previous hack. Restarting services on the platform and the way forward. Description Cryptocurrency exchange CoinEx is gearing up to resume deposit and withdrawal services for its users following a devastating $70 million hack, which occurred due to compromised hot wallet private keys. The exchange had previously outlined its commitment to developing a new wallet system that would support its extensive range of 211 blockchains and 737 tokens, … Read more Cryptocurrency exchange CoinEx is gearing up to resume deposit and withdrawal services for its users following a devastating $70 million hack, which occurred due to compromised hot wallet private keys. The exchange had previously outlined its commitment to developing a new wallet system that would support its extensive range of 211 blockchains and 737 tokens, all of which were affected by the hacking incident. CoinEX enables deposits and withdrawals In its latest statement, CoinEx announced the resumption of deposit and withdrawal services for major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Tether (USDT), USD…

    Article 2023年9月21日

  • Argentina banks bet on yuan, flipping the USD

    TL;DR Breakdown Argentina’s central bank has officially included the Chinese yuan as a recognized currency for banking deposits, a major shift in its banking policy. This move aligns with Argentina’s struggle against a dwindling supply of U.S. dollars and coincides with China’s efforts to internationalize its currency. Argentina’s National Securities Commission will allow dealing in yuan-denominated securities. Description In an unanticipated monetary maneuver, Argentina is making a bold financial bet. This South American nation is courting the Chinese yuan, in a move that could radically reshape its banking landscape. A flip, it seems, is in the works, a flip from the well-established U.S. dollars to the emergent yuan. Yuan’s entry into Argentina’s banking … Read more In an unanticipated monetary maneuver, Argentina is making a bold financial bet. This South American nation is courting the Chinese yuan, in a move that could radically reshape its banking landscape. A flip, it seems, is in the works, a flip from the well-established U.S. dollars to the emergent yuan. Yuan’s entry into Argentina’s banking The Central Bank of Argentina, in a surprising move,…

    Article 2023年7月4日
TOP