OCBC Bank announced today a strategic partnership with digital exchange MetaVerse Green Exchange (MVGX) to develop green financing solutions.
The partnership is intended to help large corporations transition to carbon neutrality. This marks OCBC’s first foray into the digital assets sector, following OCBC’s announcement late last year that it would be studying green exchanges.
OCBC and MVGX have also announced that the financing solutions will be launched later this year, and include tokenised carbon credits. These tokens will be supported by MVGX’s own proprietary Non-Fungible Digital Twin distributed ledger technology, to ensure that records of carbon performance are tamper-proof.
The carbon emissions themselves will be tracked and verified by an independent party, in order to calculate the carbon credits.
The partnership is also a response to the non-scalability of other carbon solutions so far, with difficulties such as double counting and cross-border carbon trading.
“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,” said Elaine Lam, Head of Global Corporate Banking at OCBC Bank.
“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.”