Bank of America Merrill Lynch announced that it has entered into an agreement with TerraPass, a company that manages carbon reduction projects across the country. Through the partnership, Bank of America Merrill Lynch's Global Commodities Group can purchase from TerraPass verified carbon offsets generated from agricultural methane projects throughout the U.S. This will allow the bank to create the first multisector mandatory emissions trading program in the U.S., pending approval from the California Air Resources Board.
Bank of America says that this agreement with TerraPass is part of a broader initiative to address climate change through lending, investments, capital markets activity, philanthropy and operations.
"We are pleased to be working with TerraPass, a highly innovative and respected player in the California carbon offset market," said Abyd Karmali, global head of carbon markets in the Global Commodities Group at Bank of America Merrill Lynch, in a press release. "This partnership will enable us to offer our corporate clients, who will have a carbon emissions compliance obligation under AB32, an integrated hedging solution that includes power, fuels, and carbon risk management."