Britain’s Climate Exchange, which runs the Chicago and European Climate Exchanges, announced yesterday that Bank of America has backed out of a joint venture agreed upon by the two companies last July.
The companies reaffirmed that they will remain strategic partners, however, Bank of America will not be purchasing $25 million shares of Climate Exchange, per the earlier agreement.
According to Reuters, Climate Exchange said the companies scuttled the joint venture, because it wasn’t necessary "to pursue projects of mutual interest."
In July, Bank of America announced that it would market the Chicago Climate Exchange’s (CCX) carbon offsets on the Bank of America trading platform. Bank of America also agreed to purchase CCS carbon emission permits for 500,000 tons of carbon over three years.
While it remains unclear whether or not Bank of America will market the offsets, Reuters reported that the bank said it is no longer obliged to purchase the carbon credits, though it remained committed to reducing its carbon footprint.
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