The main players in the carbon market are developing a pilot project to enable and scalable carbon credit trading.
LONDON, March 25, 2022 /PRNewswire/ — Carbonplace, the new carbon credit settlement platform, and global carbon market and exchange, Climate Impact X (CIX), have partnered in a pilot project to reduce the barriers to entry for organizations seeking high quality carbon credits on the voluntary carbon marketplace while providing a seamless experience for customers to discover, compare, purchase and withdraw credits.
As the global demand for voluntary carbon credits is expected to increase fifteenfold by 2030 and increase a hundredfold before 2050, carbon markets will become an important driver of the transition to a low carbon economy. This pilot project aims to transform the voluntary carbon market by building the accessibility, trust and transparency needed to scale up and maximize climate impact.
The pilot will establish the technical, legal and operational framework for executing carbon credit transactions through CIX’s platform, “Project Marketplace”, a new digital platform for businesses and carbon project providers launched last week, with Carbonplace making all the payments. It will enable many new customers – including businesses and financial institutions of all sizes – to advance their climate strategies and buy and trade carbon credits to finance large-scale emission removals or reductions. which would not otherwise be possible.
The collaboration unites the strengths of the two new leading players in the carbon market. Carbonplace’s large customer base, unique settlement technology, wallet service to register and store voluntary carbon credits and the high standards set by the regulatory environment for banks will be combined with the quality assured credit market of CIX, providing existing bank customers with large-scale access to the carbon market. The resulting end-to-end solution will reduce complexity and increase access, trust and transparency.
CIX, a joint venture with DBS Bank, Singapore Exchange, Standard Chartered and Temasek, enables the purchase of high quality carbon credits directly from specific projects. Using satellite monitoring and machine learning, CIX ensures the transparency, integrity and quality of carbon credits, ensuring that projects are evaluated based on carbon sequestration potential and benefits for biodiversity and local communities.
Carbonplace is a settlement platform that will provide ownership registration and enable reliable, secure and scalable exchange of certified carbon credits. Launched last year and expected to be fully operational by the end of 2022, the fintech is being developed by banking giants BNP Paribas, CIBC, Itaú Unibanco, National Australia Bank, NatWest Group, Standard Chartered and UBS. Only carbon credits verified according to internationally recognized standards will be processed on its platform.
Mikkel LarsenCEO of CIX, said, “Voluntary carbon credits offer a robust, market-based approach to financing climate change mitigation solutions. However, the funding rate is still very low compared to what is needed to keep global warming below 2 degrees Celsius. The collaboration between Carbonplace and CIX, through Project Marketplace, combines easy access to quality credits and a settlement system based on transparency and integrity. This is precisely the type of accelerator we need to develop the voluntary carbon market.”
Robert BegbieCEO of NatWest Markets, said, “Collaborating with CIX has the opportunity to transform the voluntary carbon credit market. Through Carbonplace, we can foster transparent and secure commerce, provide access to global distribution channels and, due to highly regulated banking industry standards, remove the need for multiple intermediaries, simplify the process for credit sellers. carbon and helps buyers have more confidence in the process. »