Green Finance Briefing: Tech’s newfound interest in carbon capture
- The carbon removal market has been attracting a lot of interest lately, and now it seems that there’s a strong wave of capital coming in as well, with big tech companies paving the way.
- The latest IPCC report suggests that people’s lifestyle changes can also contribute to reducing carbon emissions, but there are concerns that this narrative could backfire into a new greenwashing strategy.
The carbon removal market has been attracting a lot of interest lately, and now it seems that there’s a strong wave of capital coming in as well, with big tech companies paving the way.
Alphabet, McKinsey, Meta, Shopify, and Stripe are joining together in launching a $925 million fund – essentially an advanced market commitment on carbon capture technology – in a project named Frontier.
The idea is to invest in this technology at an early stage with the aim of figuring out a way to capture carbon at scale, store it long-term, bring the price below $100 per ton, and remove over 0.5 gigatons annually.
“With Frontier, we want to send a loud demand signal to entrepreneurs, researchers and investors that there is a market for permanent carbon removal: Build, and we will buy,” said Stripe’s head of climate, Nan Ransohoff.
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