In a groundbreaking collaboration, the Bank for International Settlements (BIS), in conjunction with the COP28 Presidency and the Central Bank of the United Arab Emirates (CBUAE), has announced the launch of the COP28 UAE TechSprint. This ambitious technology initiative aims to drive innovation in scaling sustainable finance and combating climate change, addressing critical data verification gaps in sustainable finance through cutting-edge solutions.
Agustín Carstens, the General Manager of the BIS, emphasized the role of technology in green finance: “The BIS Innovation Hub has explored how to apply technologies such as AI, blockchain and internet-of-things to green finance instruments and climate-related disclosure. This TechSprint in collaboration with the COP28 UAE, the CBUAE, and EIF will complement these efforts to address remaining gaps in the green finance market.”
Harnessing the Power of AI, Blockchain, and IoT
The COP28 UAE TechSprint is tackling three critical problem statements at the forefront of sustainable finance and climate change mitigation. Firstly, it focuses on harnessing the potential of Artificial Intelligence (AI) to revolutionize sustainability reporting, verification, and disclosure within the financial services industry. With growing global concerns about the environmental implications of investments, advanced AI solutions are sought to streamline and enhance these processes, ensuring that investments align with sustainable objectives.
Secondly, the initiative seeks to harness the power of blockchain technology to address issues related to auditing and transparency within sustainable finance. By leveraging blockchain, the project aims to create a robust framework that enhances transparency, traceability, and accountability, ultimately restoring trust in the financial sector. This innovative approach is expected to provide investors with greater confidence in the integrity of sustainable finance initiatives.
Lastly, the COP28 UAE TechSprint recognizes the importance of Internet-of-Things (IoT) and sensor technology in sustainable finance. These cutting-edge solutions will play a pivotal role in enabling stakeholders to make informed decisions by providing real-time data on impact, risk, and compliance. The integration of IoT and sensor technology promises to empower individuals and organizations with the necessary information to navigate the complex landscape of sustainable finance effectively.
Dr. Sultan Al Jaber, COP28 President Designate, highlighted the need for accessible and affordable finance to combat climate change: “Tackling climate change requires available, accessible, and affordable finance. By introducing advanced technological solutions that support the development of sustainable finance standards and instruments, we can help to foster investor confidence and better ensure that capital reaches those who require it the most. COP28 looks forward to working with its partners to drive real solutions to scale up climate action and fast-track sustainable finance initiatives around the world.”
Overall, the COP28 UAE TechSprint is addressing these three key problem statements to advance sustainable finance practices and combat climate change. It emphasizes the pivotal role of AI, blockchain, and IoT technologies in reshaping the financial sector to align with global sustainability goals. The COP28 UAE TechSprint promises to be a vital initiative in the global effort to address climate change and foster sustainable finance, with innovative technology solutions paving the way for a more sustainable and environmentally conscious financial future.
