With global demand for voluntary carbon credits expected to increase fifteenfold by 2030 and a hundredfold before 2050, carbon markets will become an important driver of the shift to a low-carbon economy.
The pilot will establish the technical, legal, and operational framework for executing carbon credit transactions via CIX’s platform, “Project Marketplace”, a new digital platform for businesses and carbon project suppliers launched last week, with Carbonplace performing all settlements.
Carbonplace’s wide client base, unique settlement technology, wallet service to record and store voluntary carbon credits, and the high standards set by the regulatory environment for banks will be combined with CIX’s curated marketplace of quality-assured credits, giving existing bank customers scaled access to the carbon market.
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.
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.
However, the rate of finance is still very low compared to what is needed to keep global warming under a 2 degrees Celsius pathway by 2030.