The Bank for International Settlements (BIS) has initiated a groundbreaking effort to promote sustainable finance solutions leveraging cutting-edge technologies like blockchain, artificial intelligence (AI), and the Internet of Things (IoT). This forward-looking endeavor is spearheaded by the COP28 presidency of the United Arab Emirates (UAE) and is being collaboratively developed by BIS, the Central Bank of the UAE, and the Emirates Institute of Finance.
The COP28 UAE TechSprint represents a challenge to developer teams worldwide, aiming to address critical data verification gaps within the realm of sustainable finance. Agustín Carstens, the General Manager of BIS, marked the commencement of TechSprint by emphasizing the pressing need to combat climate change and usher in a profound transformation in global economies. He underscored the crucial role technology plays in ensuring that funds are effectively directed toward their intended purposes, particularly those that support sustainability efforts.
The initiative has delineated three fundamental problem statements that it aims to tackle comprehensively. Firstly, it advocates for the application of AI to bolster reporting, verification, and disclosure mechanisms within the financial services sector. Secondly, it highlights the potential of blockchain technology in auditing and enhancing transparency, traceability, and accountability in sustainable finance practices. Lastly, the initiative encourages the integration of IoT and sensor technology into sustainable finance to enable well-informed assessments of impact, risk, and compliance.
Dr. Sultan Al Jaber, the President-Designate of COP28, echoed this visionary approach, emphasizing that addressing climate change requires accessible and affordable finance. By introducing advanced technological solutions that facilitate the development of sustainable finance standards and instruments, investor confidence can be bolstered, and capital can be directed more effectively toward those in need.
This ambitious initiative is open to developers from across the globe, inviting their participation and innovative ideas. The deadline for proposal submissions has been set for October 6, with the winners of the TechSprint set to be announced on December 4 during an event at COP28 UAE. The UAE is poised to host COP28 from November 30 to December 12 at Expo City Dubai, making it a crucial forum for discussions on sustainability and climate-related issues.
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