During the Singapore FinTech Festival, the World Bank's new president, Ajay Banga, announced plans to certify carbon credits in the coming months, focusing on forestry projects. This move aims to enhance the credibility of carbon markets, addressing concerns raised over the past year about the quality and impact of carbon credits. Banga believes that improving transparency and credibility in voluntary carbon markets (VCMs) is crucial for directing funds to poorer regions. The World Bank aims to create reliable credits with better pricing to ensure resources move appropriately, contributing to the institution's broader strategy of reform and adaptation to changing financial landscapes. This initiative aligns with a growing trend, as other financial institutions, such as Barclays, also explore opportunities in carbon markets.

Source: Carbonherald