Carbonplace, a bank-backed carbon credit transaction network, has raised $45m in a strategic round of investment and formed as a standalone entity.
Headquartered in London, UK, Carbonplace, which connects buyers and sellers of carbon credits through their banks, will be led by the new chief executive officer, Scott Eaton.
Carbonplace aims to “accelerate corporate climate action by providing transparent, secure and accessible carbon markets”.
The company will use the investment to scale its platform, grow its team and expand its services to a wider client base of financial institutions and accelerate partnerships with additional carbon market players.
The funding came from the nine banks around the world that founded the company—BBVA, BNP Paribas, CIBC, Itaú Unibanco, National Australia Bank, NatWest, Standard Chartered, SMBC and UBS.
Each bank shares equal ownership in the new company, which is expecting to launch this year.
The new chief executive officer, Eaton, joins from capital markets fintech Nivaura. Prior to this, he worked at Algomi and at fixed income trading platform provider MarketAxess.
Eaton commented: “We are transforming the way that carbon credits are bought, distributed, held and retired.”
Robert Begbie, chief executive officer at NatWest Markets, added: “According to McKinsey, global demand for voluntary carbon credits is likely to increase by a factor of 15 in the next seven years.
“To meet that demand, Carbonplace is delivering a reliable, secure and scalable technology that will form a crucial part of the infrastructure for carbon markets to drive climate action at scale.”