Morgan Stanley Announces Creation of Carbon Bank

Morgan Stanley announced yesterday the creation of the Morgan Stanley Carbon Bank to assist clients seeking to become carbon neutral. The new service, which leverages Morgan Stanley’s expertise in carbon trading, is being offered in conjunction with Det Norske Veritas (DNV), an international provider of emissions data certification.

According to the companies, it is the market’s first broadly offered service providing integrated carbon verification and offsetting capabilities based on the highest recognized international standards.

Commenting on the new service, Simon Greenshields, Managing Director and Global Head of Power, Power Fuels and Carbon Trading at Morgan Stanley, said, “Many companies have begun seeking ways to reduce their direct greenhouse gas emissions; our new service will help them more easily and reliably take the next step to achieve a zero carbon footprint. This is the first service we have seen giving clients a single source for everything from certifying emissions to buying and cancelling carbon credits.

Under the new service, clients will compile their emissions inventory and calculate their carbon footprint by applying the monitoring standards of the Greenhouse Gas Protocol Initiative, which has provided the accounting framework for many mandatory greenhouse gas programs across the world, including the EU Emissions Trading Scheme.

DNV will then verify these emissions inventories and calculated carbon footprints. Carbon quantification, monitoring and verification will be conducted consistent with ISO 14064 standards.

Morgan Stanley’s Commodities Group will procure and cancel carbon credits equivalent to a client’s verified carbon footprint. Clients will be able to select their preferred sources of carbon credits, although all carbon credits will be generated according to the standards of the Kyoto Protocol.

Carbon credits will be procured from various sources including from Morgan Stanley’s own direct investments in emission reductions as well as those of MGM International, one of the carbon market’s largest developers of emission reduction projects.

Clients utilizing the service of the Morgan Stanley Carbon Bank will receive a “carbon zero” certificate from Morgan Stanley and DNV.

David Yarnold, Executive Vice President, Environmental Defense, said, “Today’s announcement reinforces the need for market-based solutions to meet the challenge of climate change. Although the regulated carbon market is based on environmentally effective and standardized procedures, it has been difficult for companies to find a high-quality, standards-based service to offset their emissions in the voluntary market.”

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