Blockchain technology may be used to finance local renewable-energy projects. The technology, which basically acts as an electronic ledger, allows transactions to be carried out between parties without interference by third parties like banks. It creates trust as it assures investors that all recorded transactions are secure because the data are stored in multiple blocks and therefore difficult to manipulate.

Another way the combined approach can build trust is by ensuring that projects are evaluated by a third-party assessor, who then stores the findings in a project assessment database grounded on blockchain technology. The stored data cannot be changed.

Economist Farhad Taghizadeh-Hesary of Waseda University in Tokyo, ADBI Dean Naoyuki Yoshino, and economics graduate student Tim Schlober of the University of Bonn in Germany and Keio University in Tokyo explain the benefits of the financing scheme.

Read the transcript

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Read the blog post

https://www.asiapathways-adbi.org/2018/07/trust-by-design-investment-a-novel-blockchain-based-approach-to-ease-green-energy-investments/

About the authors

Farhad Taghizadeh-Hesary is an economist of Waseda University in Tokyo.

Naoyuki Yoshino is dean of the Asian Development Bank Institute.

Tim Schlober is an economics graduate student of the University of Bonn in Germany and Keio University in Tokyo.

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