UBS, Stanchart, BNP Paribas Team Up to Join New Carbon Market Platform

Published on: 17 February 2022
by KnowESG
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A Brief Summary

Three major global banks, BNP Paribas, Standard Chartered, and UBS recently announced their participation in the Development-stage voluntary carbon marketplace (VCM). The announcement will significantly expand the potential users of the VCM platform's settlements Infrastructure and systems services.

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The technology platform (VCM) was founded last year by NAB, CIBC, Itaú Unibanco and NatWest for carbon offsets underpinned by blockchain. The members are presently looking for new members to join the project expected to launch by the end of 2022.

Carbonplace mainly targets carbon offset projects in Latin America, Asia, Africa and Oceania. Under the 2015 Paris Agreement, introduced a target to cut down greenhouse gas emissions by half by 2030. Many corporates are buying voluntary carbon offsets to help meet the goals.

Carbon offset marketplaces always involve a middleman in the process. Consequently, the place lacks transparency and is vulnerable to double counting.

Constance Chalchat, CIB Head of Company Engagement & Chief Sustainability Officer BNP Paribas Global Markets, added: “When launched, Carbonplace will give greater transparency on the pricing and material climate impact of carbon credits, and supports corporates and investors to access quality projects as part of their multi-action carbon management strategies.”

Carbonplace uses a secure, energy-efficient distributed ledger technology, which simplifies the purchase of carbon credits for businesses. The marketplace helps owners of credits demonstrate possession to the market, with full traceability and linkage back to the source of the credit, price discovery through the posting of executed trade sizes and prices to the market, and post-trade settlement, allowing all market participants, including exchanges and marketplaces to offer value add services on top.