NatWest, CIBC, ITAU and NAB have joined forces to create a blockchain-based marketplace where firms can buy and sell carbon offsets.
Carbon offsets are used as a tool by many businesses to help reduce their environmental impact but, the banks note, there is currently no consistent global value for them.
Launching as a pilot in August, Project Carbon will act as a place where the four banks' corporate customers buy and sell carbon offsets with clear and consistent pricing and standards. More banks are expected to join later.
Users will be able to view the price history of available carbon credits as well as viewing all documentation relating to their quality and integrity. All customer transactions will be recorded on the blockchain ledger which will record ownership and provide reporting for post-transaction settlement.
The partner banks say that the marketplace could help create more carbon offset projects because firms will better understand what the return on each credit looks like.
Alison Rose, chief executive, NatWest, says: "Reaching net zero is a global effort and I am pleased we are working across the industry to support our customers and help tackle the climate challenge."