What is the "Climate Awareness Proof of Concept" used in the joint launch of the "blockchain bond platform so|bond by SEB Investment Bank and French Agricultural Credit Bank?

Blockchain technology as a clearing platform for bonds and equities is a rare consensus between the cryptocurrency circle and TradFi. The Nordic investment bank SEB from Sweden and the French bank Crédit Agricole CIB launched the "so|bond platform" on the 3rd for clearing digital bonds. Interestingly, the press release spent a lot of space explaining the "Climate Conscious Agreement." What is that?

What is the "Proof of Climate awaReness Protocol"?

The Proof of Climate awaReness Protocol (Proof of Climate awaReness Protocol) is the blockchain verification mechanism used by so|bond. According to SEB's official explanation, "the reward mechanism for each node is based on its climate impact life cycle assessment formula," meaning that the lower the carbon footprint of the node's operation, the more Climate awaResnss Coins (CRC) it will receive.

However, the press release did not elaborate more on the value of the CRC token.

As for how to measure the carbon footprint of a node, SEB stated that it will be verified based on the method developed by APL Data Center, which has been validated by SGS (SGS is a multinational group that provides testing and certification).

Interestingly, SEB introduced green bonds as early as 2016, and Crédit Agricole CIB has also launched green bonds in Taiwan, demonstrating the high importance these two investment banks place on ESG investment. ESG stands for Environmental, Social, and Governance, emphasizing that companies should focus on the impact of environmental, social, and governance factors on their long-term financial performance.

Anna Sjulander, Head of Institutional Debt Markets at SEB, stated: "so|bond is an important step for SEB and investors, allowing us to gain a deeper understanding of the core of digital asset innovation and its real significance for the financial market. Digital bonds are just the first step, and there will be more asset classes on so|bond in the future."

Actual searches could not find the so|bond page, and it is also not searchable on the SEB website, so further information cannot be obtained. However, as this is a blockchain set up by an investment bank for its clients, the lack of further information seems unsurprising.

As for how the verification model of so|bond operates or whether it can be combined with the concept of ESG, only time will tell.