UBS, Standard Chartered, and BNP Paribas have officially joined Project Carbon, a collaborative initiative designed to establish a blockchain-based marketplace for trading carbon offsets.
Initially launched as a pilot program in August by NAB, NatWest, CIBC, and Banco Itaú, Project Carbon serves as a trading venue for corporate clients to buy and sell carbon offsets with established pricing standards. The platform aims to develop a comprehensive settlement infrastructure and systems applicable to markets and exchanges within the voluntary carbon market, with plans for full operational status by the end of 2022. It will henceforth be referred to as Carbonplace.
Participants in the marketplace will have access to pricing histories for available carbon credits, as well as all relevant documentation ensuring quality and integrity. Transactions will be securely recorded on a blockchain ledger, which will ensure ownership tracking and facilitate post-transaction reporting. Only carbon credits verified under internationally recognized standards will be eligible for processing on this platform.
Kevin Arnold, co-head of global markets distribution at UBS, remarked, “This innovative platform will foster a streamlined and transparent voluntary carbon market for our clients and the industry, which is essential for advancing our sustainability strategies.”