NatWest, CIBC, ITAU, and NAB have collaborated to establish a blockchain-based marketplace designed for the buying and selling of carbon offsets.
Carbon offsets serve as a vital tool for numerous companies aiming to mitigate their environmental impact; however, the banks highlight a significant challenge: the absence of a uniform global valuation for these offsets.
Launching as a pilot in August, Project Carbon will provide a platform where corporate clients of the four banks can trade carbon offsets, benefiting from transparent pricing and established standards. Additional banks are anticipated to join the initiative in the near future.
Participants will have access to historical pricing data for carbon credits, along with comprehensive documentation regarding their quality and integrity. Every transaction will be recorded on a blockchain ledger, ensuring secure documentation of ownership and facilitating accurate post-transaction reporting.
The partner banks express optimism that this marketplace could stimulate the development of more carbon offset projects, as companies will gain a clearer understanding of the potential returns on each credit.
Alison Rose, Chief Executive of NatWest, emphasizes the collective responsibility in achieving net-zero emissions: “Reaching net zero is a global effort, and I am pleased we are working across the industry to support our customers and address the climate challenge.”