By 2035, the real-world asset (RWA) market is projected to exceed $60 trillion, with green RWAs poised to play a significant role in the onchain movement. Tokenized green assets currently make up less than 1% of total climate assets but offer untapped growth potential as the value of green assets rises.

Strict EU regulations are expected to boost global carbon trading, driving interest in programmable green assets onchain. Projects like Dimitra and Liquidstar are leveraging blockchain and AI for sustainable initiatives in agriculture, providing investment opportunities with estimated returns between 10% and 30% annually.

The carbon credit market incentivizes greenhouse gas emission reductions, with the Voluntary Carbon Market (VCM) estimated to grow by 25% annually. Sustainable bonds and climate bonds are already a significant part of the global bond market, with green assets expected to see exponential growth in the coming years.

The Paris Agreement’s stricter climate regulations starting in 2028 could increase demand for carbon credits and green energy assets. Article 6.4 establishes a global carbon credit trading market, with countries and companies expected to buy and sell credits to meet emissions reduction targets.

The Middle East, particularly the UAE and Saudi Arabia, are accelerating adoption of green assets through EV policies, solar parks, and blockchain registries. These initiatives aim to boost sustainable investments and eco-friendly urban development, with blockchain technology supporting carbon credit registries and tokenization.

While blockchain technology and government initiatives support the transition to climate-friendly infrastructure, adoption of green assets still lags. Projections suggest the green asset market needs to expand significantly to meet global net zero requirements, with regulatory clarity and consumer education crucial for widespread adoption.

Read more at Cointelegraph: Green RWAs Are Set To Recast Climate Assets