Feb. 11, 2008 ƒ‚¢ƒÂ¢¢â‚¬Å¡‚¬ƒÂ¢¢â€šÂ¬…“ Bank of America has backed out of a deal to buy a major stake in the Climate Exchange, the U.K. company that runs both the Chicago and European carbon-offset trading exchanges, Reuters reports. The deal, signed last July, called for BofA to market Chicago Climate Exchange (CCX) carbon offsets to its customers.

Itƒ‚¢ƒÂ¢¢â‚¬Å¡‚¬ƒÂ¢¢â‚¬Å¾‚¢s unclear whether BofA will move ahead with its commitment to buy 500,000 tons of carbon offsets from CCX over the next three years, as stated in the terms of the contract.

BofAƒ‚¢ƒÂ¢¢â‚¬Å¡‚¬ƒÂ¢¢â‚¬Å¾‚¢s decision comes amid growing concerns of the value of carbon offsets, which are largely unregulated. The U.S. Federal Trade Commission is currently revising its guidelines on marketing carbon offsets, and ten U.S. states recently petitioned the agency to tighten its restrictions on offset providers, citing the potential for fraud.

Yet offsets remain a popular option for companies seeking to lighten their environmental footprint and gain visibility for green initiatives. The U.S. is generally seen as a large potential market for carbon offsets.