Wednesday 21 July 2021

Global banks team up to launch carbon offset platform

Four banks and financial services companies have announced a carbon offset platform as part of their efforts to drive transparency in the voluntary carbon market.

CIBC, Itaú Unibanco, National Australia Bank and NatWest Group's 'Project Carbon' aims to support a global marketplace for quality carbon offsets with “clear and consistent pricing and standards” and provide a pathway for clients in their efforts to achieve a net zero goal.

It will initially be launched as a pilot in August to demonstrate the operational, legal and technical capability of the platform and will be aligned with the objectives of the Taskforce on Scaling Voluntary Carbon Markets (TSVCM), established by Mark Carney, UN Special Envoy for Climate Action and Finance.

Carbon offset schemes allow individuals and companies to invest in environmental projects to help balance out their own carbon footprints, with projects usually based in developing countries and most commonly designed to reduce future emissions.

The banks stated: “Tacking climate change is everyone's job. We're helping to find solutions and support our customers as they take action to transition to net zero by 2050.

“Project Carbon is a terrific example of how technologies such as blockchain can address existing barriers and make carbon offsets more accessible for our customers – as part of their broader plans to reduce overall emissions and achieve their own targets.”