Amid growing urgency for climate change solutions and actions around the world, blockchain has emerged as a humble trump card. In line with this, the Bank for International Settlements (BIS), the Central Bank of the UAE (CBUAE), the Emirates Institute of Finance (EIF) and the COP28 Presidency, have teamed up to launch the COP28 UAE TechSprint, a global initiative to empower growth in green finance.
The launch of the COP28 UAE TechSprint comes as the UAE prepares to host COP28 later this year. The initiative calls on financial innovators and developers around the globe, to come up with innovative technology solutions to address the challenges in green and sustainable finance by leveraging Artificial Intelligence (AI), Blockchain, the Internet-of-Things (IoT), and sensor technologies, per a media report.
The proposed solutions seek to address three key problem areas: AI-driven mechanisms for sustainable finance reporting, verification, and disclosure within the financial services sector; blockchain technologies that can enhance auditing, transparency, traceability, and accountability in sustainable finance and IoT and sensor technologies that can provide accurate assessments of impact, risk, or compliance in sustainable finance.
“In line with the vision of the UAE’s leadership, and its endeavours to address the challenges of climate change; we value the partnership with COP28 UAE and the BIS in launching this international initiative aimed at encouraging innovators across the globe to leverage financial technology in developing new green and sustainable finance solutions,” said Khaled Mohamed Balama, Governor of CBUAE and Chairman of EIF.
Dr. Sultan bin Ahmed Al Jaber, the Minister of Industry and Advanced Technology and COP28 President Designate, echoed similar sentiments, emphasizing the necessity of accessible and affordable finance to combat climate change. Dr. Al Jaber opines that introduction of state-of-the-art technological solutions will boost investor confidence, and “better ensure that capital reaches those who require it the most.”
Agustín Carstens, the General Manager of BIS, noted that in order to fight climate change, urgent action is crucial, going beyond mere plans and promises. He pointed out that for the necessary economic transformations to take place, investors need assurance that their funds are being used as intended. Carstens believes that timely measurement and disclosure of climate-related information, facilitated by technologies like AI and blockchain, are vital to this process.
Technology and financial innovators and developers around the globe can participate in the COP28 UAE TechSprint. Those shortlisted will receive a stipend, with winners being awarded AED 220,000 (roughly $60,000) during the COP28 UAE event in December 2023.
The development comes more than two months after the Bank for International Settlements (BIS) unveiled a blueprint for a global “unified ledger”, aimed at supporting Central Bank Digital Currencies (CBDCs) and tokenized assets.
The Switzerland-based financial entity recently conducted a survey of 86 central banks worldwide—and found that 93% of them were exploring their own CBDCs. In July, the BIS submitted a report to the G20 or Group of 20, rejecting the use of cryptocurrency as a monetary tool, citing its “inherent structural flaws.”