US investment bank Morgan Stanley is establishing a "carbon bank" aimed at clients that want to offset their emissions.
The Morgan Stanley Carbon Bank is being offered in conjunction with Det Norske Veritas (DNV), an international provider of emissions data certification.
Under the new service, clients will calculate their carbon footprint using the standards of the Greenhouse Gas Protocol Initiative. DNV will then verify the emissions and calculated carbon footprints. Morgan Stanley's commodities group will then procure and cancel carbon credits equivalent to a client's verified carbon footprint.
The bank says clients will be able to select their preferred sources of carbon credits from various emissions-reducing programmes, although all carbon credits will be generated according to the standards of the Kyoto Protocol.
"Many companies have begun seeking ways to reduce their direct greenhouse gas emissions; our new service will help them more easily and reliably take the next step to achieve a zero carbon footprint," says Simon Greenshields, MD and global head of power, power fuels and carbon trading at Morgan Stanley. "This is the first service we have seen giving clients a single source for everything from certifying emissions to buying and cancelling carbon credits."
Morgan Stanely says carbon credits will be procured from various sources, including MGM International, which generates carbon credits from emission reduction projects. Morgan Stanley acquired a 38% stake in MGM last year.