Climate Impact X, Carbonplace Complete Pilot to Boost Carbon Market Accessibilityby Fintech News Singapore December 21, 2022
Climate Impact X (CIX), a global carbon exchange and marketplace, has tied up with carbon credit transaction network Carbonplace to complete a series of proof-of-concept transactions that will increase the speed, security and accessibility of carbon market trading.
The pilot was carried out on CIX’s Project Marketplace and aims to pave the way for the enhanced connectivity between buyers and sellers required to support carbon market liquidity and scale.
According to CIX, the pilot has demonstrated that it is possible to simplify the transaction process and shorten the settlement cycle through robust in-built compliance processes of Carbonplace members and the CIX marketplace.
Carbonplace settled the transactions and established the technical, legal and operational framework for execution.
This was done by leveraging the compliance capabilities of the financial institutions behind the platform to remove frictions in counterparty due diligence and onboarding.
Carbonplace, which is due to launch in early 2023 and has been likened to the SWIFT system of carbon markets, is being developed by nine banks namely NAB, NatWest, Standard Chartered, BNP Paribas, CIBC, Itaú Unibanco, UBS, BBVA and SMBC.
As part of the integration, customers of the participating banks will gain access to CIX’s marketplace.
Meanwhile, CIX-onboarded buyers and suppliers will be able to access a broader selection of carbon projects and audience, respectively, through Carbonplace’s distribution network.
Mikkel Larsen, Chief Executive Officer, Climate Impact X said,
“Enhanced transparency, connectivity and cross-border trading are essential to effectively scale carbon markets. We believe that the combined proposition of CIX and Carbonplace offers something that is truly unique in the market.
Together, we bring an unparalleled and reliable platform to businesses and financial institutions that offer seamless access to quality carbon credits, with an easy settlement system that reduces complexity and drives transparency.”