HomeCarbon CreditsCarbon Credit Platform Carbonplace Gets $45M From Large Banks

Carbon Credit Platform Carbonplace Gets $45M From Large Banks

Nine global banks have invested a sum of $45 million in a new carbon credit platform to help ramp up transactions in the voluntary carbon market (VCM) and give the banks’ clients easier access to the market.

Banks’ $45M Climate Commitment

Demand for carbon offset credits is estimated to grow significantly as businesses are using them to achieve their net zero emissions targets

Right now, carbon credits change hands bilaterally on a project-by-project basis as well as through exchanges. 

Each of the nine banks entrusted $5 million into the carbon credit trading platform Carbonplace. The trading platform will connect buyers and sellers of carbon credits through the banks, namely.

  • BBVA
  • BNP Paribas
  • CIBC
  • Itaú Unibanco
  • National Australia Bank
  • NatWest
  • Standard Chartered
  • SMBC 
  • UBS 

Their $45 million capital injection shows a commitment to help tackle climate change. Those nine world’s largest bankers represent about $9 trillion in total assets. With their investment, each bank shares equal equity ownership in Carbonplace.

With this technological solution, each bank can now offer its customers committed to decarbonize direct access to carbon credits to offset their footprint. 

Carbonplace stated in its statement:

“The capital injection represents a commitment from some of the world’s largest financial institutions… to achieve Carbonplace’s vision of accelerating corporate climate action by providing transparent, secure and accessible carbon markets.”

The Carbonplace Platform  

Carbonplace is a trading platform launched in 2021 to connect buyers and sellers of carbon credits through their respective banks. The company received its seed funding from its founding institutions that developed its technology.

Carbonplace’ headquarters is in London under the leadership of its new CEO, Scott Eaton. He’s a financial tech veteran who chaired Nivaura, a capital markets fintech. Eaton described Carbonplace as transforming the way carbon credits are bought, distributed, and held. 

The trading network will use the $45m investment to scale up its platform’s infrastructure and grow its team. It will also seek more partnerships with other major market players such as stock exchanges and carbon registries worldwide.

The carbon tech firm said the carbon credits available would be from existing carbon offset standards bodies like Gold Standard and Verra.

Hailed as the “SWIFT of carbon markets”, Carbonplace has done pilot transactions with several buyers, sellers, exchanges, and registries. Some names include the global payments tech giant Visa and Climate Impact X, a carbon marketplace based in Singapore.

In summary, here’s what Carbonplace is all about. 

carbonplace carbon credit platform features

The network is seen as Xpansiv’s new carbon credit rival. It will facilitate the simple, secure, and transparent transfer of certified carbon credits. And that happens in real time.

Digital wallets allow the ownership of a credit to be reliably proven to the market, which lowers the risk of double counting and simplifies transparency.

Driving Corporate Climate Action

Large companies have been setting lofty net zero pledges such as these major airlines, T-Mobile, Disney, Stellantis, Lenovo, and more. Most of them follow the world’s goal to hit net zero emissions by 2050 while others have targets 10 years ahead. 

As the number of companies pledging to cut their emissions grows and investor pressure for clear plans intensifies, the importance of voluntary carbon market becomes even more obvious.

A representative from BBVA, Ingo Ramming, commented:

“Carbon markets are a fundamental pillar of our sustainability strategy and an enormous business opportunity… Carbonplace strengthens our value chain. Its modern, flexible, and secure technology will enable carbon markets to realize their full potential to drive large-scale climate action.”

The VCM has a key role in driving corporate climate action and helping companies achieve their net zero goals. Firms buy carbon credits to offset emissions they can’t avoid or reduce. 

As per BloombergNEF’ projection, demand for carbon offset credits can grow 40x to 5.2 billion tons of CO2 in 2050. That represents 10% of current global carbon emissions.

BNEF VCM 2050 projection

Investments in VCM projects grew to $10 billion last year, up from $7 billion in 2021, according to a report. While the volume of carbon credits bought as offsets (155 million) went down 4% from 2021, global supply jumped 2% (255 million). 

Carbonplace’ carbon credit platform will be available to the banks’ corporate customers later this year. It can also be open to retail customers in the future, the firm’s chief technology officer says. 

Most Popular

Zimbabwe Allows Developers to Keep More Profits from Carbon Credits

Zimbabwe has amended its new carbon law governing carbon credit projects, dropping the initial plan to give 25% of the revenue to local communities...

Suriname Takes the Lead in Selling Carbon Credits Under Paris Agreement

One of the few carbon-negative countries, Suriname, aims to be the first nation to sell carbon credits created by the Paris Agreement also known...

Battery Startups Attract Mega-Investments and American Lithium’s Discovery

Here’s a Key Summary: Battery Boom: Discover how battery startups are securing record-breaking investments, reflecting the burgeoning potential of the sector. A Lithium Gamechanger:...

IEA’s 2023 Net Zero Roadmap: Tripling Renewables and Electrifying the Energy Transition

The International Energy Agency’s (IEA) latest Net Zero Roadmap suggests that tripling renewables capacity to 11,000 GW by 2030 is one way to reach...

Climate Disclosure: New Corporate Standards for a Net Zero World

As part of the world’s continued efforts to combat climate change and transition towards net zero, one important piece of the puzzle is new...

Carbon Pricing: Understanding The Economics and Trends of Fighting Climate Change

As global temperatures continue to rise, the urgency surrounding climate policies has intensified, thrusting carbon pricing into the limelight of climate discussions. The race to...

The EU Corporate Sustainability Reporting Directive (CSRD): Key Things to Know

Companies operating in the European Union will have to deal with new non-financial and sustainability reporting requirements starting January 2024 with the EU's Corporate...

Who Certifies Carbon Credits?

Anybody can say that they’re offsetting their carbon footprint and get financial support for it, which is good. But here’s another version of the...