International Settlement Banks, COP28, and the Central Bank of the UAE call for using AI and blockchain to address climate issues.

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COP28 UAE TechSprint Launch

Amid the urgent challenges of climate change, the Bank for International Settlements (BIS) has teamed up with the host country of the United Nations Climate Change Conference COP28 and the Central Bank of the United Arab Emirates (CBUAE) to jointly launch the COP28 UAE TechSprint. This tech initiative aims to advance innovation in sustainable finance and provide strong solutions for combating climate change. The initiative focuses on addressing data verification gaps in sustainable finance and presents three key problem statements related to the applications of artificial intelligence, blockchain, Internet of Things, and sensor technologies.

The Power of Technology in Climate Finance: COP28 UAE TechSprint Creating Innovative Solutions

The urgency to combat climate change is escalating, necessitating profound transformations in economic operations and growth patterns. To fund this transformation, investors need to ensure their funds are utilized accurately. COP28 UAE TechSprint calls for technological solutions to address data verification gaps in sustainable finance. This includes leveraging artificial intelligence to enhance financial reporting, verification, and disclosure, utilizing blockchain to enhance financial transparency, traceability, and accountability, and employing Internet of Things and sensor technologies to ensure comprehensive assessments of climate impacts, risks, and compliance.

Issues to Address with Blockchain

• How can we use blockchain technology to ensure data integrity in sustainable finance, boosting investor and market confidence by enhancing transparency, traceability, and accountability, such as: how to utilize blockchain in the context of capital markets (e.g., green bonds) to achieve efficient auditing processes, enhanced transparency, seamless traceability in sustainable finance, while harnessing the potential of blockchain for disintermediation, speed, and cost reduction?
• What practical and scalable solutions can effectively track and verify the environmental impacts of investments, ensuring compliance with sustainability standards and building high trust among stakeholders?
• Exploring other innovative blockchain solutions in sustainable finance to expand climate action.

COP28 UAE TechSprint: Driving International Collaboration for Climate Action and Sustainable Finance

The scale-up of global climate action and acceleration of sustainable finance initiatives are crucial. Khalid Mohammed Balama, Governor of the Central Bank of the UAE and Chairman of the EIF, stated that by introducing advanced technological solutions and supporting the development of sustainable financial standards and tools, investor confidence can be enhanced, ensuring funds reach where they are most needed. COP28 looks forward to working with partners to drive the scale-up of global climate action and expedite sustainable finance initiatives.