Bank of America pulls out of Climate Exchange deal

LONDON (Reuters) - Britain's Climate Exchange said on Wednesday that Bank of America had pulled out of an agreed joint venture and would not be buying up to $25 million shares in the company.

Bank of America (BofA) said Climate Exchange remained a strategic partner.

BofA also agreed to buy carbon emission permits on the Chicago Climate Exchange, committing to purchase 500,000 tons of carbon over three years.

Although it has not yet ratified the Kyoto Protocol, the U.S. would be the key market for carbon offsets, and CCX aims to become the established exchange. It currently allows companies to prepare for ratification, and gain "green" credibility, by buying credits to offset their pollution on a voluntary basis.