By 2035, the real-world asset (RWA) market is projected to exceed $60 trillion, with green assets poised to be a key subsector. Currently, tokenized green assets account for less than 1% of total climate assets. However, strict EU regulations are expected to drive global carbon trading, presenting significant growth opportunities in green RWAs. Blockchain platforms are starting to tokenize renewable energy and carbon credits, exemplified by projects like Dimitra and Liquidstar that aim to improve agricultural productivity and create sustainable energy solutions. The Voluntary Carbon Market (VCM) is forecasted to reach $1.7 billion, projected to grow by 25% annually over ten years due to rising demand for compliance markets. With regulations tightening through mechanisms like the Paris Agreement, there will be increased demand for carbon credits and sustainable investments. The Middle East, particularly the UAE and Saudi Arabia, is gearing up with policies supporting renewable energy, electric vehicles, and blockchain initiatives. However, despite these advancements, the market is still in the early stages of blockchain adoption. Overall, the green asset market must expand significantly to meet net zero targets, relying on regulatory frameworks and private-sector collaboration for growth.

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