July 16, 2024
By Sharan Kaur Phillora
Singapore has taken a significant step towards addressing the global climate financing gap with the launch of Net Zero-X, a blockchain-based exchange platform designed to facilitate investments in green, clean, and climate tech projects. The platform, which went live on Tuesday, aims to connect institutional and accredited investors with vetted sustainability projects, thereby accelerating the deployment of critical capital needed to combat climate change.
Here’s what we know:
Net Zero-X comes at a crucial time when the world is grappling with the financial demands of achieving net zero emissions by 2050. According to a study by Allen & Overy and the Climate Policy Initiative, an estimated $6.2 trillion in climate finance is needed annually until 2030, increasing to $7.3 trillion thereafter, to meet global climate targets. This financial burden far exceeds the capacity of the public sector alone, necessitating robust collaboration between governments and businesses.
The platform aims to address the current $4 trillion annual global financing gap for climate projects by providing a transparent and secure marketplace for investments. Net Zero-X has initially identified 60 sustainability projects seeking investment and plans to onboard many more in the future. Over the next decade, the exchange aims to facilitate the deployment of over $10 billion in impact capital, supporting up to 500 projects within the next five years.
Net Zero-X leverages blockchain technology developed by Chintai, a licensed and regulated digital assets company in Singapore. This technology ensures full transparency and security of investments, providing immutable and verifiable records of all transactions. This level of transparency is expected to elevate investor confidence and make the platform more effective than traditional investment instruments.
The exchange is launching with its flagship project, the world’s first ‘Drive-In Waste Disposal & Energy Recovery Hub’ based in the United Kingdom. This initiative aims to redirect waste from conventional landfill sites to a state-of-the-art facility, significantly reducing carbon emissions and environmental impact while maximizing resource recovery.
Despite the availability of trillions of dollars in private capital for profitable sustainability projects, many cleantech initiatives struggle to connect with relevant investors. By providing a regulated and accessible platform, Net Zero-X aims to bridge this gap, allowing project owners and sustainability-focused startups to present their solutions to a global audience of investors.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
