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UAE taps AI and blockchain to grow green finance sector

Advanced solutions that support the development of sustainable standards can help to build investor confidence, says Dr. Sultan Al Jaber

UAE taps AI and blockchain to grow green finance sector
[Source photo: Anvita Gupta/Fast Company Middle East]

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With COP28 just around the corner, climate financing is a top priority. Private investment needs to grow to meet the estimated $2.4 trillion needed annually by 2030 to address climate change in developing countries. A cumulative $150 trillion is needed for renewable energy solutions by 2050.

To reach these goals, the UAE launched a new initiative to boost technology solutions that use artificial intelligence (AI), blockchain, and other technologies to scale up green finance and combat climate change.

The initiative, the COP28 UAE TechSprint, was launched by the UAE Central Bank, the Bank for International Settlements, the Emirates Institute of Finance, and the COP28 Presidency. 

It will run from September 2023 to December 2023, ahead of the UN climate summit in the UAE later this year.

“Tackling climate change requires available, accessible, and affordable finance,” said Dr Sultan Al Jaber, COP28 President Designate, in a statement.

“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,” He added.

TechSprint seeks to encourage global innovators from the public and private sectors to develop solutions that address green and sustainable finance challenges. 

The developers can submit solutions that use AI, blockchain, IoT, and sensor technology to address challenges in sustainable finance, such as reporting, auditing, and impact assessment.

Shortlisted participants for each problem statement will be invited to further develop their solutions and are eligible for a stipend of approximately $12,000. 

An independent panel of experts will select a winner for each of the three areas, the Central Bank said. To be announced at COP28, each winner is eligible for an award of $60,000.

“Combating climate change is more urgent than ever. It calls for a profound change in the way economies operate and grow,” said Agustin Carstens, general manager of the BIS.

“To finance the needed transformation, investors need certainty that their funds are channeled to their intended uses,” he added.

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