Bank of America exits Climate Exchange venture

Source: Climate Exchange

Bank of America and Climate Exchange plc today provided an update on the progress of the joint programme of initiatives they announced last summer.

Since July 2007, Bank of America has joined the Chicago Climate Exchange, the European Climate Exchange and the Chicago Climate Futures Exchange as part of its intention to expand its emissions trading platform. In keeping with its ongoing commitment to address the problem of environmental emissions, Bank of America continues as an investor in Climate Exchange plc and has appointed a representative to the Chicago Climate Exchange Committee for Certified Offsets.

As part of its strategic relationship with Climate Exchange, Bank of America has made significant strides in the development of environmental financial products linked to the emissions reduction instruments, including the recent launch of the Canadian Eco-Logique Credit Card; the ability to redeem WorldPoints for carbon offsets and a program for bank associates to purchase and retire carbon offsets.

With the launch of these programs, Bank of America and Climate Exchange have concluded that the joint venture they originally intended to form is not necessary to pursue projects of mutual interest and have agreed to release each other from their original agreement, including the formation of a joint venture and any contingent obligation to issue shares in Climate Exchange plc to Bank of America.

Neil Eckert, Chief Executive of Climate Exchange plc, said: "While we and Bank of America agree a formal JV is not necessary to achieve our goals, we look forward to continuing our partnership as we strive to meet the shared goal of reducing environmental emissions."

Richard Prager, Head of Global Rates, Currencies and Commodities for Bank of America, said: "We are pleased to continue our work with Climate Exchange plc as a strategic partner as we expand the ways in which we provide our customers with access to the growing voluntary carbon marketplace a key component of the bank's ongoing 10-year, $20B environmental commitment."

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