LONDON, July 25 (Reuters) – Bank of America (BAC.N: Quote, Profile, Research) said it has formed a joint venture to obtain shares in Climate Exchange PLC (CLE) in return for buying carbon emissions permits issued under the Chicago Climate Exchange, owned by CLE. BofA will get up to $25 million worth of shares in CLE (CLE.L: Quote, Profile, Research), depending on the joint venture revenues. In the meantime it has committed to buying 500,000 tonnes of carbon offsets over three years, it said in a statement on Wednesday.
BofA said in March it would invest $20 billion over the next 10 years in environmental markets, which are expected to grow as governments lay down tougher rules to curb emissions of the greenhouse gases blamed for global warming.
Under the joint venture the bank would also market Chicago Climate Exchange (CCX) carbon offsets to its customers when BofA launches an emissions trading operation later this year.
“Bank of America will play an active role in the growing emission trading industry through our membership and investment in the exchange,” Richie Prager, the bank’s head of global rates, currencies and commodities, said.