Carbonplace pilots the transfer of carbon credits with Visa

  • By Zilla Efrat

Carbonplace, the new carbon credit settlement platform jointly developed by NAB and six other major financial institutions, has successfully piloted the transfer of carbon credits through its system in partnership with Visa.

The transaction involved Visa purchasing Verra-certified credits from Sustainable Carbon, a leading carbon credit project developer.

NAB describes the move as a major boost for carbon markets and says it demonstrates the capability of Carbonplace’s unique settlement technology to significantly increase the speed, efficiency and security required to support the growing demand for voluntary carbon credits and in doing so, to more effectively drive private sector capital towards global climate solutions.

The transfer was facilitated by two of Carbonplace’s founding banks, NAB on behalf of Visa and Itaú Unibanco on behalf of Sustainable Carbon.

NAB says these developments underscore how the institutions behind Carbonplace – which also include BNP Paribas, CIBC, NatWest Group, Standard Chartered, and UBS – can collaboratively leverage their existing infrastructure, including know-your-customer and anti-money laundering procedures, to address some of the challenges that have held back the development of the voluntary carbon market (VCM).

This new collaboration is part of Visa’s global aspirations to become a climate-positive company through new partnerships and initiatives. Last year, Visa pledged to reach net zero emissions by 2040, 10 years ahead of the Paris Climate Agreement goal.

The pilot will also inform the further development of Carbonplace, which has been likened to the “SWIFT” system of the carbon markets, including the exploration of more innovative ways to settle transactions.

It is currently expected that Carbonplace will be operational at the end of 2022, NAB says in a release.

“Climate action is everyone’s job, including NAB’s,” says David Gall NAB group executive, corporate and institutional banking.

“Carbonplace is creating new opportunities to help our customers as they take action to reduce their emissions and achieve their own targets.

“This successful pilot transaction with Visa is a significant step towards being able to help more of our customers tackle existing barriers and make carbon credits more accessible to everyone,” he said.