Net Zero-X, a Singapore-based blockchain exchange for impact investors, launches on Tuesday to tackle the significant financing gap impeding the global transition to a net zero future.
Open to institutional and accredited investors, the Net Zero-X exchange enables sustainability-minded investors to identify and support vetted green, clean, and climate tech projects, Net Zero-X said in a statement.
According to the statement, the exchange has identified 60 immediate sustainability projects seeking investment, with plans to onboard many more in the future to drive capital mobilization for a sustainable future.
It aims to onboard 500 projects within the next five years, facilitating the deployment of over $10 billion in impact capital over the next decade.
This ambitious goal positions Net Zero-X as one of the largest and most influential platforms for sustainable finance globally.
It is noted that to minimize the worst impact of climate change, world leaders signed the 2015 UN’s binding Paris Agreement to reduce emissions significantly in the decades to come, reaching net zero emissions by 2050.
However, the de-carbonization of the world economy requires tremendous financial investments.
Cited a study by Allen & Overy and the Climate Policy Initiative, it estimated that $6.2 trillion in climate
finance is needed annually from now until 2030, after which it increases to $7.3 trillion, totaling nearly $200 trillion to reach the net zero target.
The cost is beyond what the public sector can finance and the net zero emissions goal requires collaboration between governments and businesses, according to Net Zero-X.
Net Zero-X also noted that today, there remains a staggering $4 trillion annual global financing gap, which its exchange platform helps tackle.
By providing a platform where institutional and accredited investors can readily invest in vetted green climate tech projects, it enables swift capital deployment globally.
Furthermore, the Net Zero-X exchange brings valuable visibility and process transparency to the sustainable finance market, supported by Chintai, a licensed and regulated digital assets company in Singapore.
“The sustainable investment space has a matchmaking problem, undermining efforts to combat climate change globally,
“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 Glenn Davies, Co-Founder of Net Zero-X.
“With this exchange, 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 having a single-place of outreach to finding valuable, verified sustainable projects across the globe,” he added.
It is noted that the Net Zero-X exchange is launching with its flagship project: the world’s first ‘Drive-In Waste Disposal & Energy Recovery Hub’.
This United Kingdom-based initiative aims to redirect waste from conventional landfill sites to a state-of-the-art facility, significantly reducing carbon emissions and environmental impact while maximizing resource recovery.
It is noted that Net Zero-X’s platform is built off of technology by Singaporean blockchain company Chintai, which holds two licenses from the Monetary Authority of Singapore.
Chintai’s platform can offer full transparency and secure the exchange’s investments, elevating investor confidence by fostering greater investor confidence by providing immutable and verifiable records of all transactions.
By collaborating with Chintai, Net Zero-X is able to save valuable development time and start facilitating the deployment of critical capital to projects earlier.
“Blockchain technology provides unparalleled transparency, is safe through its immutable records, and is more effectively deployed than traditional investment instruments,
“At Chintai we leverage the blockchain to empower growing companies to secure funding and investments in emerging business sectors such as Net Zero-X in the cleantech and
sustainability space,” said David Packham, Chintai’s Founder and Chief Executive Officer.