This new blockchain exchange aims to solve the climate crisis

The word blockchain is usually correlated to cryptocurrency, but it can be used for other puposes. The newly launched exchange platform, Net Zero-X uses blockchain technology for their platform, to ensure transparency of the investments happening on the platform. Net Zero-X may appeal to social impact investors, as it was founded with the intention to close the climate financing gap.

What makes the world go around

This gap exists since most of our existing energy systems are fueled by fossil fuels, so shifting to more environmental ways of generating energy requires a slew of new infrastructure — not to mention other factors like research — all of which require money to implement.

A considerable amount of it too: to decarbonise the world’s economy, a study by Allen & Overy and the Climate Policy Initiative estimates that a yearly USD 6.2 trillion investment into climate financing is needed from now until 2030. 

This cost goes beyond what the public sector can finance, especially since such institutions have a slew of existing responsibilities. This puts some countries in a better position to finance decarbonisation than others, which ultimately would not aid the larger goal of decarbonising the world.

The private sector then appears as an easy solution to this financial gap. 

Matchmaking issues

However, according to Glenn Davies, the Co-Founder of Net Zero-X, the issue is not a lack of private investors hoping to contribute to sustainability projects, but “a matchmaking issue,” or so he calls the difficulty that investors have in finding credible ventures to support. 

“There are trillions of dollars in the private space looking to invest in profitable, exciting sustainability projects, while many cleantech initiatives are unable to identify and connect with relevant investors to bring their solution to life,” said Davies. 

“We bridge this gap by enabling project owners and sustainably focused start-ups to present their solutions on a regulated, readily accessible platform, and investors to have a single-place of outreach to find valuable, verified sustainable projects across the globe.”

Net Zero-X aims to link investors with green climate tech projects. The platform vets these projects, and uses blockchain technology to ensure visibility and transparency. 

About this technology

Net Zero-X is supported by Chintai, a Singaporean blockchain company with licences from the Monetary Authority of Singapore (MAS). This partnership allowed the exchange to save on development time.

According to David Packham, Founder and CEO of Chintai, “Blockchain technology provides unparalleled transparency, is safe through its immutable records, and is more effectively deployed than traditional investment instruments.”

What this means is that blockchain uses a distributed ledger, which records data in multiple locations, allowing network participants to see the same information at the same time. Since it records all transactions at the same time, blockchain has previously been used for cryptocurrency trading, ensuring a lack of fraudulent records.

It can also go further, with the potential to enforce good stewardship — such as with blockchain exchange. 

Although Net Zero-X is newly launched, it presently identified 60 sustainability projects seeking investment, and will onboard more in the future to bring more visibility to sustainability initiatives, and opportunities for social impact investors.