Banking on Green: Wall Street’s Race to Power a $1 Trillion Carbon Market
- Media Manager
- Jan 4, 2024
- 1 min read
Carbon Credits
Written By: Jennifer L
Published: January 4th, 2024
At COP28 in Dubai, banks like Goldman Sachs, Citigroup, JPMorgan Chase, and Barclays are gearing up for a surge in carbon offset deals. They aim to finance carbon sequestration projects, trade credits, and aid firms in buying offsets.
This move supports smaller projects in emerging markets lacking financial backing. Sonia Battikh from Citi highlights the struggle of many developers in securing funds, emphasizing the role banks like Citi can play in bridging the financing gap in carbon markets.
Rushing in The Trillion-Dollar Carbon Market
This rush reflects a market poised to hit $1 trillion, aiding companies in achieving net zero without fully cutting emissions. However, the market faces controversies, with some credits receiving criticism for not meeting environmental claims.
The chief of South Pole, the world’s largest seller of carbon offsets, resigned amid greenwashing allegations, prompting a reevaluation. Balancing speed and understanding market norms will be crucial for Wall Street’s success in this evolving voluntary carbon market (VCM).
In 2022, climate commitment from major banks, including Citi, JPMorgan, Barclays and HSBC, have reached over $5 trillion.
