Jan 5, 2023

How to make sustainable finance accessible, efficient, and transparent

Traditional financial intermediaries (TradFi) create friction in infrastructure financing through access thresholds, time delays, fees, inaccurate, and sparse information.

Against the backdrop of the climate emergency, we are significantly missing our financing targets for key projects such as renewable energy investments, which need to increase by more than seven-fold — from less than $150 billion in 2021 to over $1 trillion — to meet climate goals.

However, with traditional financing models, the sustainable infrastructure asset class remains attractive to only a small group of institutional investors. At the same time, impact investors are looking for ways to provide capital for such projects. Still, they have difficulty competing against a multi-layered and insular securitization industry. These inefficiencies result in most sustainable infrastructure projects failing to materialize.

We need to address the cause, not the symptoms, to solve the problem.

Frigg, a Swiss-based start-up that aims to address the above issue, builds software to upgrade sustainable finance and streamline the financing workflow from origination, securitization, and financing, to post-financing follow-up.

Our wedge is to help small-to-medium blue-chip sustainable project developers access (re-)financing via crypto by tokenizing debt. It makes sustainable infrastructure debt as an asset class more accessible, composable, and efficient for a wide spectrum of investors.

Our mission is also to fight against greenwashing by providing full transparency on asset operational performance with our data trackers.

Read about the first digital green bond that Frigg launched with Malthe Winje, a Norwegian-government-agencies-supported hydro developer.

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Impact investing is a form of investing that aims to generate financial returns while also creating positive social and environmental impact. This type of investing allows individuals and organizations to align their money with their values, and make a difference in the world while also potentially earning financial returns.

We are excited to announce that we are working with Mathe Winje (MW) est. 1922, a Norwegian infrastructure developer with support from Norwegian government agencies NORAD, Norec, and NORFUND. Our software enables MW to issue bonds on the Ethereum blockchain to refinance its operational hydroelectric plant, Agatobwe, in Rwanda, Africa.