Technology

Tokenisation of renewable energy assets accelerates despite regulatory hurdles and greenwashing concerns

Wednesday, 12 November 2025 5:08AM UTC

Innovative financial mechanisms like blockchain-based tokenisation are transforming renewable energy investment, but regulatory uncertainty and transparency challenges temper widespread adoption, highlighting a cautious yet promising shift towards sustainable finance.

The momentum towards sustainable energy sources is intensifying globally, and innovative financial mechanisms are emerging to support this transition. One such innovation gaining traction is the tokenization of renewable energy assets, which involves converting ownership or investment stakes in projects like solar or wind farms into digital tokens on a blockchain. This process has the potential to democratize investment, making it accessible to smaller investors who traditionally might have been excluded, thus widening the base for renewable project financing.

Blockchain technology, the backbone of tokenization, offers significant advantages in the renewable energy sector. Its decentralized and immutable ledger enhances transparency, accountability, and trust, vital attributes for financial markets and energy transactions alike. Real-time tracking of energy production and consumption enabled by blockchain can verify data accuracy, fostering greater confidence among investors and stakeholders. However, the adoption of blockchain in energy markets is not without challenges. According to market research forecasts, although the energy blockchain market is expected to surge at a compound annual growth rate of 25.6% and reach a value exceeding $31 billion by 2030, regulatory uncertainty poses a major hindrance. Energy companies are cautious, given the absence of standardized regulations and the difficulty of integrating blockchain with existing complex energy infrastructures, which often require costly and time-consuming retrofitting.

A major hurdle lies in the regulatory landscape itself, which remains fragmented and inconsistent across jurisdictions. For instance, in the United States, tokenized debt instruments may be classified as securities, subjecting them to stringent oversight by the Securities and Exchange Commission (SEC). This classification creates compliance uncertainty and operational difficulties for developers and investors. Internationally, regulators grapple with developing frameworks that ensure market integrity and investor protection while accommodating the decentralised nature of blockchain technology. The International Organization of Securities Commissions (IOSCO) recently highlighted risks arising from investor confusion over whether they are purchasing an actual asset or just a token, and expressed concerns about third-party issuer risks. Additionally, they warned that expanding links between tokenized assets and broader crypto markets could lead to systemic spill-over risks, echoing apprehensions previously voiced by European regulators.

Compounding the regulatory challenges are issues inherent to the technology's adoption in peer-to-peer (P2P) energy trading markets. These markets rely heavily on smart contracts, which require standardised and legally verified templates to function within existing national or regional energy laws. Licensing requirements for energy suppliers and intermediaries in many regions pose significant barriers to decentralised P2P transactions. Alongside compliance, concerns over data protection and privacy remain, as blockchain’s permanent record conflicts with data privacy rights such as the 'right to be forgotten.' Effective reconciliation of these issues is necessary to sustain trust in blockchain-enabled energy trading.

The risk of greenwashing presents another critical challenge within the tokenized renewable energy ecosystem. Tokenized renewable energy certificates (RECs) and carbon offsets hold promise for transparent sustainability claims, but without rigorous verification and certification standards, there is a danger that market participants could falsely claim environmental responsibility. This undermines the credibility and effectiveness of green financing initiatives, potentially deterring institutional investors and stall market development.

Despite these complex challenges, promising pilot projects underscore the potential of blockchain and tokenization to drive innovation in renewable energy finance. For example, the partnership between Turbo Energy and the Stellar Development Foundation aims to pioneer tokenized debt instruments for solar project funding. Using Stellar’s blockchain infrastructure, they seek to enhance asset management and financial growth opportunities for green infrastructure. Turbo Energy’s CEO, Luca Marangoni, has articulated optimism that tokenized debt financing could unlock fresh investment avenues, particularly attracting institutional investors interested in green assets. Their approach utilises a blend of historical project data and blockchain analytics, potentially setting a precedent for wider adoption of decentralised infrastructure financing.

In parallel, technology collaborations such as IBM’s partnership with the Energy Web Foundation demonstrate efforts to improve trust and transparency in renewable energy certificates through immutable, blockchain-based tracking. These initiatives aim to tackle authentication issues and prevent fraud or double counting of renewable energy production, furthering the integrity of the market.

While the promise of blockchain-driven tokenization for renewable energy finance is compelling, industry players and regulators alike must navigate a delicate balance. Regulatory clarity, standardized compliance frameworks, enhanced consumer protections, and technological interoperability remain essential to overcoming current barriers. Moreover, addressing the substantial infrastructural investments and computational costs associated with blockchain deployment is critical for broadening access beyond major players.

In conclusion, tokenization represents a potentially transformative approach in enabling scalable, transparent, and inclusive investment in renewable energy infrastructure. However, realising its full potential will require coordinated regulatory efforts, advances in blockchain technology applications, and vigilant market oversight to mitigate risks such as fraud, greenwashing, and investor confusion. The evolving pilot projects and growing market interest highlight a cautiously optimistic outlook as the energy sector gradually integrates innovative financial technologies to support the global transition to sustainability.

📌 Reference Map:

^[1] (OneSafe.io) - Paragraphs 1, 2, 4, 6, 7
^[2] (Reuters) - Paragraphs 3, 5
^[3] (GlobeNewswire) - Paragraph 2
^[4] (BM.ge) - Paragraph 4
^[5] (Sustainability Directory) - Paragraph 5
^[6] (Renewable Watch) - Paragraph 6
^[7] (RSIS International) - Paragraph 7

Source: Noah Wire Services

More on this

https://www.onesafe.io/blog/tokenization-renewable-energy-regulatory-challenges - Please view link - unable to able to access data
https://www.reuters.com/sustainability/boards-policy-regulation/global-securities-watchdog-says-tokenization-creates-new-risks-2025-11-11/ - The International Organization of Securities Commissions (IOSCO) has raised concerns about the risks associated with the growing trend of asset tokenization—the issuance of crypto tokens backed by real-world financial assets like stocks or bonds. While some industry players see tokenization as a way to improve efficiency through faster settlements and lower trading costs, IOSCO warns that the underlying blockchain technology introduces new vulnerabilities. A key issue is investor uncertainty about whether they are acquiring the actual asset or merely a token representing it, along with counterparty risks related to third-party token issuers. Despite increased interest, especially from some major financial institutions such as Nasdaq, IOSCO notes that actual adoption remains limited and that promised efficiency gains are inconsistent due to reliance on traditional financial infrastructure. The regulator also cautions that growing links between tokenized assets and crypto markets could lead to spill-over risks, echoing earlier warnings from the European Union's securities authority.
https://www.globenewswire.com/news-release/2024/01/23/2814175/0/en/Blockchain-in-the-Energy-Market-to-Rise-25-6-Annually-Reaching-US-31-73-Billion-by-2030-According-to-Persistence-Market-Research.html - The integration of blockchain technology into the energy sector is projected to experience significant growth, with an anticipated annual rise of 25.6%, reaching a valuation of US$ 31.73 billion by 2030. This growth is driven by the need for enhanced transparency, efficiency, and decentralization in energy markets. However, the widespread adoption of blockchain in the energy sector faces challenges, notably regulatory uncertainty. As blockchain disrupts traditional centralized systems, regulators are grappling with establishing frameworks that ensure compliance, security, and fair market practices. The lack of standardized regulations hampers scalability and widespread implementation, as energy companies hesitate to invest in technologies that may face regulatory hurdles in the future. Additionally, the complexity of existing energy infrastructures poses a significant challenge. Integrating blockchain into these complex ecosystems requires overcoming interoperability issues and ensuring seamless communication between various systems. The retrofitting of legacy systems to accommodate blockchain can be resource-intensive and time-consuming, acting as a deterrent for companies looking to embrace this technology.
https://bm.ge/en/news/bridging-technology-and-law-regulating-blockchain-smart-contracts-for-peer-to-peer-renewable-energy-markets-blog - The article discusses the challenges and regulatory considerations of implementing blockchain-based smart contracts in peer-to-peer (P2P) renewable energy markets. It highlights the need for standardized code libraries and legally verified smart contract templates to facilitate P2P energy trading. Regulatory compliance is a significant concern, as P2P renewable energy trading often falls within national or regional energy regulations, which may impose strict licensing requirements on energy suppliers and intermediaries. This creates barriers for decentralized P2P transactions facilitated by smart contracts. Additionally, the article addresses data protection and privacy risks associated with blockchain transactions, emphasizing the need to reconcile the right to be forgotten with blockchain’s immutable nature and ensuring compliance with privacy principles.
https://prism.sustainability-directory.com/scenario/tokenized-renewable-energy-certificates-and-carbon-offsets-convergence/ - The article explores the convergence of tokenized renewable energy certificates (RECs) and carbon offsets, focusing on the potential benefits and challenges. It highlights the risk of increased greenwashing in tokenized markets, where entities may falsely position themselves as environmentally responsible without substantive action, eroding trust in sustainability claims. Regulatory uncertainty poses a significant threat to the successful convergence of tokenized RECs and carbon offsets. Without clear and consistent guidelines from governments and regulatory bodies, market development could be stifled, deterring institutional investors and companies from participating. The article emphasizes the need for standardized verification and certification processes to prevent greenwashing and ensure the integrity of tokenized renewable energy assets.
https://renewablewatch.in/2023/08/19/blockchain-benefits-growing-role-in-promoting-renewable-energy-utilisation/ - The article discusses the growing role of blockchain technology in promoting renewable energy utilization, highlighting its potential benefits and challenges. It identifies scalability and cost as significant challenges in deploying blockchain applications in renewable energy. The proper functioning of blockchain requires substantial computational power, leading to increased complexity and computational loads as more nodes are added to the network. This can result in delays and high transaction fees. Additionally, establishing and maintaining a blockchain network requires significant investment in hardware, software, and infrastructure, posing an entry barrier for smaller companies and projects. The article also notes that despite these challenges, blockchain holds significant promise in the renewable energy industry, offering potential solutions to existing issues.
https://rsisinternational.org/journals/ijrias/DigitalLibrary/volume-9-issue-12/688-714.pdf - The article examines the integration of blockchain technology into renewable energy supply chains, focusing on its potential to enhance transparency and security. It discusses the use of blockchain for certifying renewable energy production, addressing challenges such as the authenticity of renewable energy certificates (RECs) and the risk of fraud and double-counting. The article highlights a partnership between IBM and the Energy Web Foundation to create a blockchain-based platform for certifying renewable energy production, leveraging blockchain's immutable nature to provide an auditable, transparent record of energy generation and consumption. This system assigns a digital certificate to each unit of energy produced from renewable sources, securely tracked on the blockchain, ensuring that certificates cannot be forged or double-counted, thereby improving the overall trust and integrity of the renewable energy market.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative presents recent developments in the tokenization of renewable energy assets, including a November 11, 2025, partnership between Turbo Energy, Taurus, and the Stellar Development Foundation to tokenize financing for hybrid renewable energy installations. ([stellar.org](https://stellar.org/press/turbo-energy-taurus-and-stellar-join-forces-to-tap-into-usd74-43-billion-eaas-market-through-tokenization-of-hybrid-renewable-energy-projects?utm_source=openai)) This indicates a high freshness score.

Quotes check

Score: 7

Notes: The article includes direct quotes from Turbo Energy's CEO, Luca Marangoni, expressing optimism about tokenized debt financing unlocking new investment avenues. A search reveals that similar statements have been made in other recent reports, suggesting these quotes may have been reused. However, no exact matches were found, indicating potential originality.

Source reliability

Score: 6

Notes: The narrative originates from OneSafe.io, a company offering crypto-friendly banking services. While the company has a public presence, it is not a widely recognized news outlet, which may affect the perceived reliability of the information.

Plausability check

Score: 9

Notes: The claims about the potential of blockchain technology to enhance transparency and efficiency in renewable energy financing are plausible and align with current industry trends. The mention of Turbo Energy's partnership with the Stellar Development Foundation is corroborated by other reputable sources, lending credibility to the narrative.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents recent developments in the tokenization of renewable energy assets, including a partnership between Turbo Energy, Taurus, and the Stellar Development Foundation. While the content appears fresh and plausible, the reliance on a less established source and the potential reuse of quotes from other reports warrant further verification. Therefore, the overall assessment is 'OPEN' with medium confidence.

Renewable energy
Blockchain
Tokenisation