The European Investment Bank (EIB) has issued the first digital green bond on SEB and Credit Agricole’s so|bond platform, launched in April.
As the first actor, EIB has issued a digital Climate Awareness Bond of 1 billion Swedish kronor. Proceeds will be allocated to climate-related projects.
so|bond uses a new form of blockchain validation logic to provide a digital bond platform with an energy consumption similar to that of non-blockchain systems. It also uses a reward system whereby affiliated banks are rewarded for reducing their environmental impact.
Ricardo Felix, vice-president of EIB, says: “Today marks another ground-breaking milestone for the EIB. This Climate Awareness bond will run on a platform designed to minimise the environmental footprint of the IT infrastructure. By combining the power of blockchain with our commitment to environmental stewardship, we further strengthen our path towards a greener and more sustainable future.”
Anna Sjulander, head of the sovereigns, supranationals and agencies segment of debt capital markets at SEB, comments: “[This] solution combines innovation and climate-smart solutions. It is a great technological development which paves the way for efficiency gains and in parallel increases transparency regarding the environmental footprint.”
