CBA has made a $15 million investment in Xpansiv as part of the agreement, which focuses on opportunities including enhancing liquidity, market marking, improving efficiency and transparency of carbon markets.

Andrew Hinchliff, CBA Group Executive Institutional Banking & Markets, said that helping clients in all sectors of the economy to transition and achieve their sustainability targets was a core pillar of the bank’s strategy.

“Helping our customers prepare for the future is central to what we do,” he said. “As the world transitions to a more sustainable future, voluntary carbon markets will play a critical role in the economies of tomorrow. As Australia’s biggest bank, we have an important role to play in its development.

“Global and Australian voluntary carbon markets are nascent today, but we expect them to grow rapidly, fuelled by increasing net-zero commitments from companies, rising demand for carbon offsets and more private sources of capital entering the market.

“Our view is the carbon market in Australia will develop on a voluntary basis, progressively drawing in partners and building critical mass. We are meeting with many other organisations interested in this space and are exploring opportunities where we can work together to help develop and grow Australia’s voluntary carbon market.

“Xpansiv has built a leading marketplace for ESG commodities, and we are pleased to be able to invest in the next phase of its growth. This includes its launch of Australian Carbon Credits Units (ACCU) trading next year as the company continues to build out its platform,” Mr Hinchliff said.

Ben Stuart, Xpansiv Chief Commercial Officer, said: “We anticipate Australia’s voluntary carbon market will grow quickly in both size and trading volumes given the country’s position as one of the world’s largest producers of natural resources. Our partnership with CBA signals the bank’s intention to play a leading role in supporting the development of carbon market infrastructure and will significantly accelerate the development of our client offering.”

Xpansiv is the world’s liquidity hub for ESG-inclusive commodities — such as carbon offsets, Renewable Energy Certificates (RECs) and differentiated fuels — providing a centralized platform for buyers and sellers seeking to fulfil their ESG commitments.