OCBC Bank and MetaVerse Green Exchange (MVGX) – both based in Singapore, will partner on a digital exchange for carbon credits.
MVGX is a “digital green exchange” licensed and regulated by the Monetary Authority of Singapore. OCBC Bank is the longest established Singapore bank and the second-largest bank in Southeast Asia.
According to a company statement, the new exchange is scheduled to be launched later this year offering carbon credits in the form of MVGX’s Carbon Neutrality Tokens (CNTs). The target market is for large corporates to offset their carbon emissions.
The exchange will leverage MVGX’s proprietary Non-Fungible Digital Twin (NFDT) distributed ledger technology that provides corporates a verifiable, immutable, and constantly updated record of carbon performance. While already offering tokenized carbon credits, MVGX is developing new green financing solutions as part of the partnership with OCBC.
The bank explains that by purchasing carbon credits, corporates are also investing in green projects such as reforestation and renewable energy that contribute to future decarbonisation.
Elaine Lam, Head, Global Corporate Banking, OCBC Bank, commented:
“With the recently released report by the United Nations’ Intergovernmental Panel on Climate Change (IPCC), there will be increased urgency in corporates’ transition to a low carbon future by cutting down greenhouse gas emissions. We hope to accelerate these efforts by providing financing solutions with tokenised carbon credits, and expand the reach of private sector finance in areas and sectors most crucial in mitigating climate change.”
OCBC states that by the end-2021, it had extended over $34 billion in sustainable financing to customers, surpassing its original target of S$25 billion by 2025 four years ahead of schedule. A new target of S$50 billion in sustainable financing commitments by 2050 has been established.
MVGX Executive Chairman and Co-Founder Bo Bai, added that despite the best intentions, governments and businesses around the world have come to realise the limitations of the current systems for tracking and neutralising carbon emissions.
“Thankfully, there is now a greater urgency to embrace new solutions that leverage technology to promote carbon reduction and finance green initiatives. By joining forces with Southeast Asia’s second-largest bank, we have the opportunity to advance our sustainability ambitions and fast-track our nation’s goal of achieving Singapore’s 2030 Green Plan. We are excited to be building the bridge between green investments in traditional finance and the global carbon trading markets of the future through green digital assets.”