LONDON (Reuters) - Britain’s Climate Exchange said on Wednesday that Bank of America had pulled out of an agreed joint venture and would not be buying up to $25 million shares in the company.
Climate Exchange, which runs the Chicago and European Climate Exchanges for trading carbon offsets, said the pair had decided to ditch a formal joint venture because it was not needed “to pursue projects of mutual interest.”
Bank of America (BofA) said Climate Exchange remained a strategic partner.
Last July BofA agreed to a joint venture in which it would market the Chicago Climate Exchange’s (CCX) carbon offsets to its customers on BofA’s own trading platform.
BofA also agreed to buy carbon emission permits on the Chicago Climate Exchange, committing to purchase 500,000 tons of carbon over three years.
Bank of America said it was no longer obliged to purchase the carbon, but added that it remained committed to reduce its carbon footprint.
Although it has not yet ratified the Kyoto Protocol, the U.S. would be the key market for carbon offsets, and CCX aims to become the established exchange. It currently allows companies to prepare for ratification, and gain “green” credibility, by buying credits to offset their pollution on a voluntary basis.
Reporting by Chris Wills and John Bowker, editing by Will Waterman