Blockchain for Green Bond

Transcription

1 Blockchain for Green Bond Mr. Xiaochen Zhang, Task Force on Green Business, EBAC President, FinTech4Good

2 Blockchain for Financial Services: some examples Source:

3 Green Bond: a promising instrument with challenges Are there technologies available for cost-effective standardization, verification, certification and reporting to ensure market integrity and allow investors to perform their own due diligence? Will new buyers join the usual suspects in green bond market to secure and sustain a green bond premium? Are there technologies to prove and disclose additionality without increase costs? Will investors accept lower yield in exchange for demonstrable environmental benefits? How to raise awareness and improve professional education in investment community on green bond?

4 Different Impacts of Blockchain for Green Bond Security An electronic signature of the document and only the signature, document type and document URL are stored in the blockchain. Cost reduction and free up Capital It provides the definitive, final settlement in milliseconds Smart Contract Contracts will only be executed only when certain conditions are met which not only automates processes but also avoid human related mistakes Transparency Ties Impact Reporting documentation and allocations to issuance for transparency. Improve efficiency Handles hundreds of thousands of securities transactions per second with complete privacy. Certification Data collection, processing, and verification will be done in a completely new way

5 Green Bond Distributed Ledger System: DisLedger DisLedger is a fast, scalable distributed ledger that handles hundreds of thousands of securities transactions per second with complete privacy. It provides the definitive, final settlement in milliseconds freeing up cash deposits and collateral. Ties Impact Reporting documentation and allocations to issuance for transparency. DisLedger is environmentally friendly itself - requires small amount of computing resources so uses minimal electricity unlike Bitcoin blockchain. Green Bond Distributed Ledger System Sales and coupon payments are settled in milliseconds. Reduces deposits required. Simplifies ownership recording and coupon payment processing. Cash Bank A Bond Issuer Cash Cash Bond Registrar Impact Reports & Allocations Impact reports are linked directly to the issuance. Bond Bank B Transaction confirmation DisLedger - Distributed Concurrence Ledger Patent Pending Copyright 2017 Packet Dynamics, LLC

6 Blockchain for Green Bond Scandalization Previous Process Owner Production Data Consulting Company PDD Project Validation Company Validation Report Carbon Assets Mgt Company Monitoring Report Project Verification Company Verification Report Expert Committee Expert Report Current carbon asset development process: Months Regulatory node Exchange node Owner Consulting Company Carbon Ledger Process node Committee of Experts node DLT Asset Account Smart Contract Project Methodology node node Validation Company Verification Company Shorten the development time by 40%-80% Carbon Asset Mgt Company Strictly Private and Confidential 3-6 Months Source: Energy Blockchain Labs

7 Luxembourg Stock Exchange Case The issuer, having filed the document, keeps the original electronic file of the document together with the ed certificate. This digital certificate may be used by the issuer as proof of filing in the future by locating and referring to the appropriate transaction within the publicly available blockchain public ledger. -Luxembourg Stock Exchange Source:

8 Ministers Conference on Blockchain for Green Bond

9 Ministers Conference on Blockchain : three key arms for collaboration Ministers Blockchain Summit Share knowledge, foster collaobration and build a healthy globalecosystem 02 Blockchain Council Advise minsters and their senior advisors on technology, policy and social issues around Blockchain blockchain and DLTs Frontier Labs Support ministers and their agencies to develop Proof of Concept and implement pilots to address frontier challenges

10 Ministers Conference on Blockchain In discussion with the following countries and sectors. The list is still growing Financial services Denmark Healthcare Kenya Education India Georgia Kazakhstan Afghanista n Australia Public Services Chile Sustainable Development Goals Malaysia Smart City and Energy Egypt

11 Washington DC London Copenhagen Shanghai Launch 伦敦启动 Xxxxxxxxxxxx Xxxxx xxxxx xxxxxx xxx xx xxxxxxxx xxxxxx x xx Xxxx x xxxxx xxxxx x xxx xxx Xx xxxx x xxxxxxxxx xxxx xxxxx Xx xxxxxxx xx xxxxx xx xxxxxxxxx x Options for the first summit Guangzhou Dubai Nairobi Astana Launch Xxxxxxxxxxxx Melbourne Xxxxx xxxxx xxxxxx xxx xx xxxxxxxx xxxxxx x xx Xxxx x xxxxx xxxxx x xxx xxx Xx xxxx x xxxxxxxxx xxxx xxxxx Xx xxxxxxx xx xxxxx xx xxxxxxxxx x

12 Blockchain Council: organizational structure for effort Co-chairs will work with secretariat for both strategic and operational issues of the council 4 committees will provide expert support to ministers to accelerating blockchain innovation Each co-chair can propose a one year long special task force at the annual Summit. Develop secter specific blockchain use cases to be considered by the members 01 CO-CHAIRS 02 COMMITTEES 03 TASK FORCES 04 USE CASE DEVELOPMENT GROUPS Secretariat will work with co-chairs, committees, task forces and use case development groups to support ministers to accelerating blockchain innovations in new markets.

13 Blockchain Frontier Labs:Drive use cases and pilots development in emerging markets Hackathon Use Case Development Blockchain4SD Gs Lab Copenhagen Insurance Blockchain Lab Beijing, Qingdao Fast-prototype Pilot Implementation Digital Identity Lab London Healthcare Blockchain Lab Washington DC Smart City Blockchain Lab Washington DC Financial Inclusion Blockchain Lab Washington DC

14 Global Blockchain Acceleration Network Our Mission Why is it important? Why is it important? We build pipeline for investors, introduce entrepreneurs to new markets, and solve the world s biggest challenges for a better world. Blockchain technology represents a new operating system for enterpise, government and beyond and will completely transform the way in which we move value and data." FinTech and Blockchain hold the promise to achieve disruptive innovation in human history. New technology requires the emergence of a new ecosystem. Xiaochen Zhang, President, FinTech4Good, Co-Chair, Blockchain Frontier Group Silicon Valley America Lima Washington DC Matthew Roszak, Co-Founder & Chairman of Bloq Europe Copenhagen London Warsaw Nairobi Africa Yinming Pang,General Manager, Greenland Financial Investment Holding Group Beijing Asia 5 Continents Guangzhou Shanghai Oceania Melbourne 7 Countries 10 Cities 100 Investors 180 Days Acceleration Program 360 Days Incubation 3 years Mentorship $1 million Awards $1 billion fund to follow up 100 Biggest Challenges

15 Xxxxxxxxxxxx Xxxxx xxxxx xxxxxx xxx xx xxxxxxxx xxxxxx x xx Xxxx x xxxxx xxxxx x xxx xxx Xx xxxx x xxxxxxxxx xxxx xxxxx Xx xxxxxxx xx xxxxx xx xxxxxxxxx x Xxxxxxxxxxxx Xxxxx xxxxx xxxxxx xxx xx xxxxxxxx xxxxxx x xx Xxxx x xxxxx xxxxx x xxx xxx Xx xxxx x xxxxxxxxx xxxx xxxxx Xx xxxxxxx xx xxxxx xx xxxxxxxxx x

16 Our Roadmap 2020 Bring positive impact to 1M people 2017 Smart City Blockchain Lab Acceleration Program Venture Fund 2016 Insurance Blockchain Lab FinTech4Good Pilot Programs Scale up Impact

17 Thank you Xiaochen Zhang President, FinTech4Good Chairman, Blockchain Frontier Group