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More banks join blockchain-based carbon marketplace

More banks join blockchain-based carbon marketplace

UBS, Standard Chartered, and BNP Paribas have joined Project Carbon, a bank-backed initiative to create a blockchain-based marketplace where firms can buy and sell carbon offsets.

Launched as a pilot in August by NAB, NatWest, CIBC, and Banco Itau, Project Carbon will act as a place where corporate customers buy and sell carbon offsets with clear and consistent pricing and standards.

The platform is being developed to provide settlements infrastructure and systems for marketplaces and exchanges in the voluntary carbon market and is expected to be fully operational by the end of 2022. As of today, it will be known as Carbonplace.

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. Only carbon credits verified according to internationally-agreed standards will be processed on the platform.

Kevin Arnold, global markets co-head distribution, UBS says: “This innovative platform will help create a streamlined and transparent voluntary carbon market for our clients and the industry, which will be critical to helping us all fulfil our sustainability strategies.”

Comments: (1)

A Finextra member
A Finextra member 16 February, 2022, 11:39Be the first to give this comment the thumbs up 0 likes

In addition to the emissions compute costs associated with blockchain, how exactly will these carbon offsets be verified? Studies by organisations like Carbon Plan have shown for example $400 million of offsets have been sold in Calfornia without absorbing a single ton of carbon. Climate scientists have also frequently cited difficulties actually measuring carbon removal from the atmosphere.



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