Evercity, a smart sustainable cities ecosystem and Loch Energy, a Hong Kong-based provider of breakthrough renewable energy and biofuel solutions signed MoU the previous week. The parties agreed to start developing a platform for a new type of financial instrument, combining concepts of blended finance, carbon credits and blockchain technology to support the attainment of SDGs. With the help of the latest technologies, the GST Platform is expected to attract additional capital flows for energy-efficient and sustainable energy projects.
According to a World Bank report, annual level of incremental low-carbon investments on the order of $700 billion will be required by 2030 in order to achieve the set goals for low-carbon development.
One of the main challenges faced by the markets of green financial instruments, and carbon credits in particular, is limited liquidity and thus a lack of financial motivation among investors, which limits the access of innovative and green industries to private capital. Currently, traditional financial instruments seem to be incapable of providing tangible results.
In this regard, the concept of Green Security Token was born. The recently emerged notion of blended finance (strategic use of development finance for the mobilization of additional finance towards SDGs), coupled with the distributed ledger technology led to the creation of a Green Security Token (GST). GST is a new tool designed to solve the problems of carbon markets combining profitability guarantees for investors and measurable environmental impact. This will help achieve unprecedented level of transparency and reliability, as well as attract new players to the green finance market through financial motivation.
Word from Alexey Shadrin, Evercity CEO
Blended finance is a new hybrid tool that includes both the intent to make a positive impact as well as provide financial returns. What truly excites me is that blockchain and industry 4.0 technologies allow us to create an even more sophisticated instrument, that unites both the concept of blended finance and the benefits of state-of-art-technologies. Among these benefits are: higher transparency, security and, of course, inclusiveness. Inclusiveness is becoming a more urgent topic: our planet requires more and more capital to cause positive impact, so we have to do our best to attract more people into the impact investing activities. I believe, that the new instrument we are working on is bound to solve this problem.
About Loch Energy
Loch Energy is a global renewable energy company that has successfully implemented a number of projects in Asia and is preparing a new blockchain project in EU.
Evercity is a smart sustainable city ecosystem, consisting of two main divisions — a digital accelerator of SDG-alligned projects and a turnkey development lab. As an accelerator, we select the best blockchain, IoT, AI, biotech, and cleantech projects, provide support for the projects and help them attract investments and deployment in smart cities around the world. We also organize innovative events such as hackathons and accelerators aimed at finding and developing innovations which solve the problems of businesses and cities. As developers, we are creating a blockchain-based platform for impact measurement, monitoring and investment.