In the latest move towards zero-emission virtue signaling, several major global banks are investing loads of cash into a new platform that will help better connect corporate clients with carbon offset credits.
Nine leading banks, including BBVA, BNP Paribas, CIBC, and Standard Chartered, have come together to invest a combined $45 million into Carbonplace, a new platform focused on facilitating transactions in voluntary carbon credits, making it easier for the banks’ corporate customers to participate in zero-emission projects around the world.
The platform is expected to go online sometime later this year, with the potential of eventually becoming available to the banks’ retail customers in the future. The funding will be used to increase employee headcount and upgrade the platform’s infrastructure, explained Carbonplace CTO Robin Greene. The offset credits available through the platform will be issued by established carbon offset standards groups, such as Gold Standard and Verra.
As of current, carbon credits are typically traded among corporate entities via commodity exchanges, and then supposedly used to fund environmentally-conscious projects such as tree planting or providing cook stoves to developing nations. “The capital injection represents a commitment from some of the world’s largest financial institutions, which account for nearly $9 trillion in total assets, to achieve Carbonplace’s vision of accelerating corporate climate action by providing transparent, secure and accessible carbon markets,” said Carbonplace, as cited by Reuters.
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