In theClimate Week NYC, Verra-the now global leader in climate action and sustainability-and Citi, one of the world’s largest financial services companies, sign a Memorandum of Understanding. Such cooperation will support better development of voluntary carbon markets and encourage as well as support environmental initiatives with new innovative financial products.
New Financial Products for Environmental Markets
Under the MOU, Citi and Verra were going to closely collaborate in the introduction of market-based solutions that address specific key global environmental challenges. Integrating Verra’s Verified Carbon Standard (VCS) and Plastic Waste Reduction Programme with the financial services know-how of the Citi group, both entities would look to develop new financial instruments aimed at creating sustainable development goals. This will create opportunities for investors to finance projects within the voluntary carbon markets but also initiatives aimed at reducing plastic waste.
Role of Citi in Carbon Market
The agreement stipulates that Citi will play a leading role in the scalable voluntary carbon market through the integration of VCUs into financial products. VCUs are units representing carbon offsets issued from approved projects, aimed at reducing or eliminating greenhouse gas emissions. The company will also incorporate Plastic Credits into the broader environmental market, augmenting other market-based solutions for sustainability.
This is coming at a time when voluntary carbon markets are increasingly being viewed as a crucial tool to fight climate change, helping businesses meet their climate goals by allowing them to purchase carbon credits to offset their emissions. Citi will receive the training it needs to operate effectively in this market through its partnership with Verra, which is also well known for creating standards that verify the quality of these credits.
Reduce Plastic Waste
Citi and Verra will collaborate on the Plastic Waste Reduction Programme. The Programme is a standardized approach to calculation and verification of plastic waste recovery and recycling activities in an ongoing effort that threatens ecosystems. Citi will work with Verra towards integrating Plastic Credits into its financial products as it supports efforts to reduce plastic waste globally. This has been positioned at creating higher market engagement in solutions aimed at tackling plastic pollution.
Education and Stakeholder Engagement
To that end, under the MOU, Verra shall provide Citi with comprehensive training under its core programmes, amongst them being the VCS and Plastic Waste Reduction Programme. The training will in turn equip Citi with the requisite knowledge to support the conception of financial products compliant with the above standards.
Citi intends to interact with the stakeholders of the environmental and financial industries apart from launching financial products. The intent will be achieved through webinars, workshops, and other seminars to create awareness about and promote the benefits of market-based environmental solutions. These activities will thus create industry-to-industry relationships and stimulate follow-on innovation in voluntary carbon markets and other related sustainability initiatives.
To Stimulate Solutions to Climate Challenges
It is in this context that a partnership such as the one involving Citi and Verra best illustrates growing importance that is assigned to the financial sector support of climate change and environmental mitigation. By developing financial products supporting voluntary carbon markets as well as plastic waste reduction, Citi leverages its resources to help propel global efforts in mitigating climate changes and promoting sustainability.
The focus on market-based solutions aligns with a growing international interest in mechanisms that reward good environmental stewardship. It lays the ground for further collaboration where it becomes a ground to allow Citi to develop impactful projects in emerging markets with Verra’s support for high standards of environmental integrity.
This partnership will most probably define the future of the global carbon market, especially as companies and investors continue to come under increased pressure to meet sustainability targets. Citi and Verra are collaborating with products that not only aid corporations to achieve their climate objectives but also deliver meaningful impact on the reduction of greenhouse gas emissions and plastic waste.
End
This partnership between Verra and Citi constitutes an important step forward in developing impactful, sustainable financial solutions to meet global climate goals. Combining Citi’s expertise in financial markets with Verra’s experience in climate action and sustainability standards, this partnership might fast-track growth in voluntary carbon markets and plastic waste reduction efforts globally.
New financial products would benefit businesses and investors for greater participation in the voluntary carbon markets and contribute to environmental sustainability. Such partnerships would remain essential as voluntary carbon markets continue to develop and evolve toward effectively delivering on the promise of these markets to fight climate change and other pressing environmental issues.
Source: Verra