Standard Chartered Partners with British Airways for Groundbreaking Carbon Emission Financing

Standard Chartered's Innovative Financing for Carbon Credit Firms

In a bold move, Standard Chartered has announced that it will be offering the first-ever commercial debt aimed at a carbon credit firm, providing a much-needed financial lifeline to emerging technologies that combat carbon emissions. This initiative comes in partnership with British Airways, which has committed to an advance purchase of over 4,000 tonnes of carbon credits from the project developer UNDO.

The Challenge of Carbon Emission Technologies

Despite the pressing need for effective carbon removal methods, many of these technologies are still in early stages and unproven at scale. Traditionally, funding through grants and venture capital has dominated the field, leaving banks hesitant to provide loans due to perceived risks. By securing this advance purchase agreement with British Airways, Standard Chartered has significantly reduced the credit risk for project developer UNDO.

• UNDO implements enhanced rock weathering by applying silicate rock dust on farmland.
• This process naturally captures carbon when it rains, storing it for over 100,000 years.
• The collaboration includes partners CUR8, CFC, and WTW.

Chris Leeds of Standard Chartered emphasizes the necessity for scalable technological solutions to make carbon dioxide removals affordable. With a staggering goal of eliminating around 10 billion tons of carbon emissions annually by mid-century, innovative financing models are crucial for expanding the carbon credit market. Carrie Harris from British Airways highlights that carbon removals are integral to achieving sustainability targets.