To assist in scaling up transactions of voluntary carbon credits and make it simpler for their customers to participate in the market, nine international banks have invested a combined total of $45 million in a new platform, Carbonplace, based out of London.
Companies looking to use the credits to help fulfill net-zero emissions objectives are projected to increase demand for carbon offsets, which are produced through initiatives like planting trees or using cleaner cooking fuel. Each of the banks, including BBVA, BNP Paribas, CIBC, Ita Unibanco, National Australia Bank, NatWest, Standard Chartered, SMBC, and UBS, has contributed $5 million to Carbonplace. This platform would link buyers and sellers of credits via the banks.
According to Robin Green, Chief Technology Officer of Carbonplace, the credit platform will be made available to the banks’ business clients later this year. It may eventually be made available to retail consumers as well. Green stated that the carbon offset credits offered would be those produced by established standards organizations like Gold Standard and Verra.