BBVA has joined Carbonplace as a founding member. Through this technological solution, BBVA will offer its customers worldwide direct access to voluntary carbon credits to compensate for their emissions. BBVA is the first Spanish bank to partner with this platform which aims to become an integral component of the voluntary carbon market.
Carbonplace is a carbon credit settlement platform created by a group of banks committed to finding a collaborative fintech solution to strengthen the voluntary carbon credit market and drive large-scale climate action.
“Carbon markets play a key role in achieving the 2030 Paris Agreement targets and carbon neutrality by 2050. At BBVA, we also see these markets as a fundamental line in the sustainability strategy and a huge business opportunity. By joining Carbonplace, we will be able to help our clients manage and mitigate their climate risk,” said Luisa Gómez Bravo, Global Head of Corporate & Investment Banking at BBVA.
The purchase of voluntary carbon credits, provided by the private sector and managed through a certified registry, allows companies and individuals to voluntarily reduce greenhouse gas (GHG) emissions.
The platform, which will go live by the end of 2022, aims to enhance access to the voluntary carbon market for those who wish to complement their existing decarbonization efforts.
Carbonplace is an innovative global carbon credit transaction platform which will enable the simple, transparent, and secure transfer of certified carbon credits. The platform will provide the settlement infrastructure for trading credits which have been verified according to internationally-recognized standards.
“The world needs to avoid, reduce, and remove as many greenhouse gas emissions as possible as quickly as it can. Making such a huge transition will require all the tools at our disposal, and voluntary carbon markets will have a significant role. Resilient, flexible and modern infrastructure that ensures trust and transparency, such as Carbonplace, is essential for the voluntary carbon market to grow and function effectively”, according to Carbonplace.
As specified by the Intergovernmental Panel on Climate Change (IPCC), limiting global warming to 1.5°C will require the elimination of up to 1,000 gigatons of CO2 in the 21st century.
BBVA, in its commitment to expand carbon credit markets as one of the key solutions for decarbonization, has been part of the Taskforce on Scaling Voluntary Carbon Markets (TSVCM). It is a taskforce that is defining the roadmap to articulate and strengthen the integrity and transparency of these markets. BBVA is the only Spanish bank member of this taskforce.
As the number of companies committed to reducing their emissions grows, and investor demands for clear and credible transition plans increase, the importance of a voluntary carbon market subject to optimal operating rules becomes more evident. Meeting this growing demand will require a market 15 times larger than the current one, according to the TSVCM itself. The private sector intends to offer market solutions that truly add value.
BBVA views carbon markets as a great opportunity and recently announced the launch of a new carbon markets business line that offers its corporate customers the possibility of trading emission allowances and carbon credits.
In these markets, BBVA plays a role in the consolidation of carbon emissions as a financial investment asset in a market that is expected to generate great value and as an advisor, financier and issuer of hedging products for carbon emissions as a financial product.
In addition to BBVA, Carbonplace is backed by BNP Paribas, CIBC, Itaú Unibanco, National Australia Bank, NatWest Group, Sumitomo, Standard Chartered, and UBS.