About

The Green Assets Wallet (GAW) is the result of a unique consortium of leading capital market actors and technology innovators formed under the lead of Stockholm Green Digital Finance.  

The Wallet was developed to deliver efficiency and transparency to the green debt market in support of scaling the supply of, and investment in, credible green investment opportunities through cost-efficient and immutable validation and reporting of green impacts.


 

Introducing the Green Assets Wallet

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The Green Assets Wallet’s mission is to help accelerate the market for green investments in support of the United Nations’ Sustainable Development Goals and the objectives of the Paris Agreement. 

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the launch event

The GAW blockchain platform (Minimal Viable Product) was launched in Paris on November 27th 2018 during Climate Finance Day. Read more about the launch event at Stockholm Green Digital Finance’s website.

 
 
 

Objective

To successfully deliver on the Paris Agreement on Climate Change, trillions of dollars will be needed. In the last few years, we have witnessed unprecedented momentum mobilizing private capital around climate change, from clear policy support to finance sector leadership. For example, in 2018, the UN Principles for Responsible Investment reached above 2000 signatories.

 Yet, actual international capital redeployment remains low compared to overall global investments. Leading investors point to a lack of credible green investment opportunities to invest in. Potential high impact projects remain considered too risky. At the same time, the world has never been in greater need of investments in sustainable solutions.   

 The Green Assets Wallet is a technology that aims to bridge this gap. The objective of the technology is to support scaling of the green debt market by bridging green investors with potential investment opportunities through cost efficient and immutable validation and reporting of green commitments and impact.

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We find it both important and exciting when combinations of the latest technological developments merge with the forces that are driving the transition to a green and sustainable economy. The ambition of this center is at the core of this link and we look forward to collaborating with and learning from Stockholm Green Digital Finance.
— Christopher Flensborg, Head of Climate & Sustainable Financial Solutions, SEB
We see a major need for green bond investors to ensure that green money goes to the financing of environmentally friendly projects and deliver promised environmental benefits. The new technology will create the reliability of environmental certification many investors lack to dare to take the step of investing green
— Erika Wranegård, Fund Manager, Öhman Group

The Green Assets Wallet is based on three elements;

Validation  /  Impact  /  Trust

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Validation

The Green Assets Wallet (GAW) offers cost effective and immutable verification of delivery on green investment. The Validation is built around the verification of Evidence Points (such as engineering reports, certification schemes and labels, satellite footage, etc.) validated by Accredited Validators (such as engineering firms, auditor firms, certification organisations, IoT devices, etc).

The Process

Validation of Green Commitments put forward by the recipient of funds may require one point of evidence while others may require a combination of several. This depends upon the issuer, project, market as well as type of evidence. 

The example to the rights illustrates how a Green Building is validated through the GAW.

 
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Impact

The GAW puts impact reporting on the blockchain to support issuers and investors to demonstrate positive impact. While the Validation element is binary (yes or no, have green claims manifested), the Impact element offers the ability report on project level; tonnes CO2 reduction, kWh renewable energy and any other impact through a custom report form.

The technology enables aggregation of impact to Issuer level. It should be noted that the Green Assets Wallet does not take responsibility for generating the impact reporting data, it offers the system by which that reporting can take place in a transparent and efficient manner useful to the investors and issuers. 

 
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Trust

The Green Asset Wallet aims at supporting new entrants in demonstrating credibility and a track record to successfully engage with investors and tap into the green debt market. Building upon the green deliverables recorded in the blockchain, the Green Assets Wallet can feed this back to investors.

 
 
 

Partners

The Green Assets Wallet has been developed by a consortium of capital market actors, researchers and technology innovators with one specific objective; to help scale the green debt market.

The project has been developed under the lead of Stockholm Green Digital Finance, a not for profit foundation missioned to accelerate green finance though Fintech solutions. Blockchain engineer ChromaWay, one of the first blockchain companies founded in 2014, is building the software. And remote sensing company, Geografiska Informationsbyrån, is testing the opportunities for project validation via satellite.

The Green Assets Wallet (Dec 2017 – Dec 2018) has been funded and co-developed by the Emerging Markets Dialogue on Finance (EMDF), which is a project of Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ).

Funding Partners

We would also like to thank all those other actors and supporters who have helped us in this development including pilot issuers; Brazilian Development Bank (BNDES), YES Bank, ICBC, Advanced SolTech Sweden AB, Althelia Funds Mirova, University Teknologi Mara (UiTM) and organisations including; FEBRABAN, CEBDS, SweSIF and FC4S.

Scope

The 2018 development work defined distinct boundaries in terms of asset classes, sectors and technological features to ensure delivery of a solid technological foundation. Specifically, the following content features and elements were developed; Data submission for project validation and impact reporting for the green bond asset class in green building and solar energy sectors. These are structured according to green bond categories and sustainable development goals and impact reported in units tonnes CO2 reductions, kWh generation and “other” through a custom report form. There is currently seven “pilot” issuers that has provided input and data to the GAW.

A blockchain-based solution such as that proposed by Stockholm Green Digital Finance and partners will provide a way to verify and ultimately scale green investment
— Nick Robins, Professor in Practice, London School of Economics

Priorities 2019

Thorughout 2018, a Minimal Viable Product was created and launched. The development team has actively engaged a wide range of green debt market participants and reached the following conclusions;

  1. There is significant market appetite for creative solutions to unlock the full potential of the green debt market,

  2. there has been strong response to the Green Assets Wallet from, in particular, leading investors and emerging and developing market issuers, and

  3. the technology sits on the potential to be a game changer in support of levering high impact green debt transactions globally.

Going forward, the consortium is now seeking to take the GAW into Production Standard. Summary of priorities areas for 2019;

  • Completing the platform to production standards including; updates of functionality elements and user friendliness.

  • Extend the GAW to include more asset classes (e.g. green loans), sectors (e.g. transportation) and impact units. 

  • Decide the long-term governance- and financing structure.  

We are also seeking to expand the number of involved investors and issuers, especially from developing and emerging economies. 

If you are interested in joining the GAW project please contact us: