Inside ‘climate fintech’: The fintech firms using carbon offsets to address climate change
- Financial institutions are increasingly rallying around environmentally friendly initiatives.
- Startups are turning towards carbon offsets to build a carbon-neutral future.
Fintechs are scaling up greener solutions aimed at neutralizing the adverse impact of climate change. The uptick in climate friendly startups — the ‘climate fintech’ sector — can be largely attributed towards a steady influx of climate change consciousness among consumers, investors and policymakers.
Fintechs aside, traditional financial institutions are also diving into eco-friendly practices. Recently Nasdaq announced that it is developing a trading platform for carbon removal credits. In February of this year, the American Bankers Association joined 10 other financial trade organizations in releasing a set of guidelines for financing the transition to a low carbon economy.
Tapping into public sentiment, fintechs are working towards zero carbon goals through carbon offsets for individuals and businesses that aim to compensate for carbon dioxide emissions through activities such as tree-planting or carbon sequestration.
Negative emissions platform Patch is focused on supporting businesses with building their carbon offset portfolios through a variety of features such as its APIs, climate change technologies, e-commerce, banking, and payments tools.
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