Industrial Bank Co. is working with the China Beijing Environment Exchange to launch a China UnionPay-branded, “low-carbon” credit card, an official from the Fuji-based bank tells PaymentsSource.
“This is China’s first low-carbon credit card,” he says. “This card will help the bank to establish a carbon-emission reduction platform with China Beijing Environment Exchange.”
The goal is to reach carbon neutrality, in which individuals calculate the amount of the greenhouse gases they directly or indirectly release over a specific time and counter the total by buying carbon credits to fund energy-conservation and emission-reduction projects that meet international standards.
Through the platform created by Industrial Bank and the exchange, cardholders can reach carbon neutrality by using an online platform to estimate their annual carbon emissions. Cardholders then may apply a charge to their cards for the applicable amount to fund the projects.
There is no annual fee on the card, and cardholders may not use reward points to pay off their carbon-offset charges.
The cost to offset each ton of carbon emissions is 35 yuan (US$5 or 4 euros), the official says. “Cardholders will voluntarily pay for a certain amount of carbon emissions for the first year,” he says. “The emission standard is two tons for a gold card, and one ton for a regular card.”
Cardholders also may purchase more carbon credits using their cards, according to the official.
Instead of plastic, the card is made of a new green, biodegradable material, and cardholders receive their bills electronically instead of through paper bills sent through the mail, the official says. Industrial Bank also is establishing a carbon-purchasing fund to which cardholders may donate one penny per card transaction, the official adds.
