Nine global banks have invested $45 million on a carbon credit platform, contributing 5 million each (8 Feb 2023). The platform based on blockchain technology will enable banks` corporate customers to carry out voluntary carbon market transactions. The company plans to open the platform to retail customers in the future.
Voluntary carbon markets allow organizations, or individuals, to reduce their carbon footprint by buying offset credits created by carbon reduction projects. These projects can be natural, like reforestation that naturally sequesters carbo or mechanical like direct carbon capture.
The quality and efficiency of offsets created in voluntary carbon markets are subject to the project and the regulatory body issuing the credits. To tackle this issue, the new platform would use credits issued by existing carbon offset standards groups.
The company aims to bring accessibility, trust, and transparency to the voluntary carbon market by using its blockchain-enabled distributed ledger technology and accelerate global climate action.
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