JPMorgan Chase announced on Tuesday a commitment of $200 million to remove and store a massive 800,000 metric tons of carbon dioxide from the atmosphere – equivalent to a whopping 896 billion pounds of coal burned!
In a significant move towards combating climate change, JPMorgan has partnered with Climeworks and Charm Industrial, two rising stars in the carbon capture sector.
In a $20 million, nine-year agreement with Climeworks, JPMorgan aims to capture and store 25,000 metric tons of carbon dioxide, which operates the largest direct air capture site in the world. They’ve also partnered with Charm Industrial to remove and store 28,500 metric tons of carbon using the startup’s innovative bio-oil technique, injecting carbon-rich liquid made from plant material underground for permanent storage.
Last but not least, JPMorgan will purchase $50 million of carbon removal credits from Frontier to offset the bank’s operational emissions and provide its clients with access to $25 million worth of credits.
But why is this important? To prevent the worst of climate change and meet the Paris Agreement’s ambitious goals, scientists agree that we need to not only reduce but remove carbon from the atmosphere – a target of 10 gigatons per year.
Despite criticism around the efficacy of carbon removal investments, the move by JPMorgan sends a strong market signal, illustrating the bank’s commitment to supporting initiatives that enhance the voluntary carbon market’s integrity.