Banking News

OCBC partners with MetaVerse Green Exchange to develop green financing solutions

(26 April 2022 – Singapore) OCBC and MetaVerse Green Exchange (MVGX), a digital green exchange licensed and regulated by the Monetary Authority of Singapore (MAS), announced a strategic partnership to develop new green financing solutions using tokenized carbon credits.

The credits will be called MVGX Carbon Neutrality Tokens (CNTs), and they will use distributed ledger technology to keep updated records of climate action projects.

The use of carbon credits to mitigate climate change has become increasingly popular, particularly in industries such as shipping, steel, and energy, where it has traditionally been difficult to directly cut emission levels. Instead, by purchasing the credits, such companies would be investing in environmentally friendly projects, including ones in renewable energy. Ultimately, that should help to reduce overall pollution levels.

“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 OCBC Head of Global Corporate Banking Elaine Lam.

“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.”