GCMU Intermediaries
What’s in it for financial intermediaries?
This GCMU infrastructure will make it easier for financial intermediaries, like banks and insurance firms, to provide much-needed financing and risk management for the carbon markets.
These financial intermediaries would contract directly with project developers to build portfolios of credits. These projects would be tracked in the GCMU ledger structure, and the resulting portfolios of deposits would become eligible for sale to corporate buyers.
How do intermediaries improve the carbon-credit-purchasing process for buyers?
The buyer will purchase a financial contract, rather than the output from a specific project. This contract would be backed by the intermediary, which would provide replacement in-kind if a project fails. GCMU intermediaries can manage diversified portfolios of credits, therefore requiring lower risk premiums.
