Historical series Itaú Unibanco obtains Central Bank approval to proceed with the incorporation of Carbonplace
International carbon trading platform gets $45 million from the founding banks
São Paulo, March 07, 2023 – Itaú Unibanco received approval from the Central Bank (BC) to acquire a stake in Carbonplace, a network for trading carbon credits. The platform raised US$45 million in a strategic investment round with the nine banks that founded the fintech: BBVA, BNP Paribas, CIBC, Itaú Unibanco, National Australia Bank, NatWest, Standard Chartered, SMBC and UBS. Each of the banks has an equal stake in the company. The constitution of the joint venture also has the approval of the Administrative Council for Economic Defense (CADE).
The funds will be used to enhance the development of the platform, which will connect buyers and sellers of carbon credits around the world through the partner banks and users, expand the services to a broader base of the institutions’ clients, and accelerate partnerships with other carbon market participants.
“The transaction highlights the commitment of Itaú Unibanco – one of the pioneering institutions in the adoption of ESG practices in Brazil – to the strategic agenda of positive impact. At the same time, it reinforces Carbonplace’s mission to unlock the supply and potential demand of carbon, providing transparency, connection, security in operations, and making the market more accessible,” said Maria Belen Losada, head of New Business Development and Markets at Itaú Unibanco.
Carbonplace is the only carbon credit platform exclusively formed by banks, which play the role of sponsor for their clients, and will perform the financial settlement, bringing the security of regulated institutions.
“Brazil is one of the largest producers of carbon credits in the world, while the demand for credits is concentrated in the Northern Hemisphere countries. Thus, the platform will offer our clients an international network of connections, with access to buyers and sellers around the world, as well as information on prices and transacted volumes,” explains Belen.
Blockchain technology, which keeps records unalterable, will be used in trading within Carbonplace, ensuring efficiency and transparency, seeking to mitigate duplicate transaction counting. It will also allow the sharing of information in real time to ensure instant and traceable settlement of carbon credit operations. With digital wallets, the credit holders will be able to provide reliable proof of ownership to the market. “Integrating Carbonplace is another step in Itaú Unibanco’s public commitment to be a net zero bank by 2050 and to assist clients in the process of transitioning to a greener, inclusive, low-carbon economy,” says Belen.