Green, Blue, Sustainability, and Impact Bonds

Subtype

No asset of this subtype is currently listed on the Regen Atlas.

Definition: Green and Impact Bonds are bond issuances that finance investments that meet strict sustainability requirements while protecting investors. Blue bonds finance marine and ocean projects with positive effects on the environment, the economy and the climate.

Description

While bonds are useful for centralized institutions to finance large infrastructure projects, it remains to be seen whether or not they can be meaningfully leveraged by smaller, more locally savvy institutions. The bond market is heavily regulated by states, optimized to ensure repayment to investors. As such, bonds are heavily reliant on state intervention for issuance and enforcement. Frigg.eco, a green bond issuance and tokenization platform, has a 15-point list of issuance requirements, reaffirming that the fixed operations costs for issuing bonds are still high and unwieldy for more localized institutions.

Example

Frigg.eco is a green bond issuance and tokenization platform.

In September 2022, Frigg.eco collaborated with Mathe Winje (MW), a Norwegian infrastructure supported by Norwegian government agencies NORAD, Norec, and NORFUND. Through their platform, MW issued bonds on the Ethereum blockchain to refinance their operational hydroelectric plant, Agatobwe, in Rwanda. The 'AgaTobwe Token' (ATT) was the first digital green bonds issued in compliance with the Swiss Distributed Ledger Technology bill.

First digital green bond - Frigg.eco