Partnership Aims to Lower Entry Barriers for Organisations Seeking High-Quality Carbon Credits
Climate Impact X (CIX), a carbon exchange backed by Temasek, has partnered with Carbonplace, a carbon credit settlement platform developed by seven major banks, to simplify access to high-quality carbon credits in the voluntary carbon market. The collaboration aims to reduce the entry barriers for organisations looking to participate in carbon credit transactions.
The partnership will involve piloting a comprehensive framework that addresses the technical, legal, and operational aspects of executing carbon credit transactions via CIX’s newly launched digital platform, Project Marketplace. Carbonplace, created by BNP Paribas, CIBC, Itau Unibanco, National Australia Bank, NatWest Group, Standard Chartered, and UBS, will handle the settlements behind the transactions.
The platform is designed to exclusively process carbon credits verified against internationally recognised standards. Expected to be fully operational by the end of this year, it will provide secure, scalable trading and a reliable record of ownership for certified carbon credits.
This initiative is aimed at tackling current challenges related to access, trust, and transparency within the voluntary carbon market. CIX and Carbonplace anticipate that the collaboration will allow a wider range of customers, including corporations and financial institutions, to buy and trade the carbon credits necessary for large-scale emissions removals or reductions that would otherwise be unfeasible.
Mikkel Larsen, CEO of CIX, stressed that current financial flows are “still very slow” compared to the required pace to limit global warming to below 2°C by 2030. He believes that Carbonplace’s transparent and reliable settlement system is crucial for accelerating the growth of the voluntary carbon market.
Robert Begbie, CEO of NatWest Markets, highlighted that the collaboration removes the need for multiple intermediaries, simplifying the process for carbon credit sellers and increasing trust in the overall system for buyers.
