Morgan Stanley is set to invest in carbon credits and greenhouse gas reduction projects worth up to $3bn (€2.4bn), as part of a strategy to expand its commodities business. It is the largest commitment so far by a financial firm to the Kyoto Protocol's initiatives on carbon emissions.

The majority of Morgan Stanley's new investment will be used to purchase carbon credits and the rest will be invested in projects and initiatives related to emissions reduction. The bank may also hire more traders for the carbon and emission trading business which it launched in 2004.