In the context of faster worldwide socio-environmental change, the Water-Energy-Food Nexus has received growing attention within science and worldwide politics by promoting integrated resource governance.
Over the last few periods, cities are getting more inhabited than about 54 percent of the global populace, and more FEW demands occur. Governments are disturbed about FEW sources of shortage that affect numerous features of societies, such as communities, households, industries, and businesses. The exponential development of the population seeing limited supplies is simulated, and awful resource shortages are concluded.
The government needs to design an investable financial model to shift to a low carbon economy. Data-driven financing is based on how financial network maps link water, energy, and food alteration the operational model of water, food, or farming system. The focus should be on Transport, Energy, and Bio-economy such as forestry.
How does a government, or pension funds, invest in a systemic change of an economy, not by preselecting technologies?
- Involve government, pension funds, autonomous wealth fund, and banks
- Find lead markets, innovative flexibility, bio-economy, on-demand energy networks.
- Restoring existing possessions and value systems for progress
- Make new investment automobiles to turn the transport’ towards low carbon
Anchor Gift. Ripple – Digital financing
- We need to integrate IoT-enabled infrastructure data streams with financial models.
- We need to focus on assets tokenization and infrastructure (digital financing and smart contracts).
- Need to improve (financial) liquidity and reduce currency exchange risk with RippleNet and OnDemandLiquidity (ODL).
Data to organize structural components of the economy to design funds for systemic shifts to low carbon
Innovative Infrastructure projects deliver benefits to the more excellent economy instead of providing advantages only to particular industries or people.
The data to form structural components of the economy to plan funds for systemic changes to low carbon you need to work on the following three main areas:
- Financial net map of industry structure
- Examine component performance and inefficiencies
- Form financial models based on returns expectations and P3 structures
Investment Needs are rising
As with the growing population of the world, the resources are decreasing day by day. We need to invest in food-water-energy resources. There are few reasons why the investment needs are growing, and assets are siloed.
- Public deficits
- More considerable public debt to GDP ratios
- Failure of the public sector to bring efficient investment
- Poor bank balance sheets and exchange buffers
- Decreased tax revenue and inequity of property values
Traditional investors are tied to their old risk and return models. They don’t follow any innovative ideas to grow their business.
Infrastructure financing has several sub-divisions.
Infrastructure financing could be for purely financial reasons. For example, when a new port, airport, desalination, or gas pump is built in a country, it allows more foreign trade. A public-private partnership usually funds these projects. This is as these projects have net positive value. Therefore, the deal made can be shared among the government and the private firm.
But, when it comes to greenfield infrastructure financing, the management does spend funds on these projects even if there are no immediate returns. As these projects might have a negative net present value, they are carrying out typically by the government—projects like green building/development, intelligent water systems, renewable energy, and intelligent mobility.
Road transportation and social infrastructure deliver benefits to several people that can be directly identified. For instance, toll roads and rail projects are taken as to be fixed-income infrastructure projects. They are funded by charging the persons who use the services.
What is the benefit of data in infrastructure finance?
The cyber-physical system unlocks the informational efficiencies for the new revenues, operational savings, and even financial benefits from the ESG integration. Returns and ESG value streams can be securitized and vended to debt or affect investors, insurance corporations, or retail stakeholders to finance different innovative projects using blockchain and digital securities.
Intelligent infrastructure information stack helps us identifying, valuing, allocating and pricing data streams for risk management.
While the Cyber-physical system also provides opportunities for resource tokenization and the encrypted agreements tied to actual performance. The tokenization procedure converts the loans and understanding of the physical properties into digital equivalents that are vented and traded and are more liquid than traditional finance.
Private and public financed infrastructure usually concentrates on siloed and fixed definitions of ventures and their business models, investment, and returns streams. Data and intelligent systems, for example, the energy-food-water nexus, accelerate opportunities for financial innovation. In some way, this results from data ‘leakage’ through energy, water, or agriculture silos projects, and partly as data reveal hidden values that can be monetized via new business models.