JPMorgan Chase has announced that it is taking steps to accelerate the growth of carbon dioxide removal (CDR) technologies through long-term contracts of more than $200 million.
“These agreements reflect our ambition to support scale, innovation and evolution in these technologies,” said JPMorgan Chase Chief Risk Officer Ashley Bacon in a release on May 23. “Alongside reducing emissions, the world needs significant investment in durable carbon removal solutions with gigaton-scale potential.”
The aim of the agreements is to remove and store 800,000 metric tons of carbon dioxide equivalent called mtCO2e from the atmosphere. This makes it one of the largest carbon removal purchases ever. By 2030 the plan is for JPMorgan Chase to match its unabated direct operational emissions with durable carbon removal, which will enhance operational sustainability efforts.
“Financing promising technologies needed to help accelerate the low-carbon transition requires capital and expertise. We’re working to drive scalable development of carbon removal and storage as commercial solutions and aim to send a strong market signal,” said Daniel Pinto, President and Chief Operating Officer, JPMorgan Chase according to a press release.
One partnership is through Climeworks, where there is a nine-year agreement to deliver 25,000 mtCO2e of carbon removal services.
Co-Founder and Co-CEO of Climeworks Christoph Gebald said in the release that his company’s long-term agreement sets a “compelling example for the immediate action and the portfolio approach that are needed to deploy CO2 removal solutions.
“The finance industry has no doubt become a trailblazer in supporting the scale-up of high-quality carbon removal solutions, today marks a new milestone in this field,” Gebald said.
Another partnership is through Charm Industrial, where the firm agreed to buy Charm CDR to remove and store 28,500 mtCO2e for the next five years.
“We’re excited to partner with JPMC to remove thousands of tons of carbon while creating significant economic opportunities in communities with large-scale agriculture and oil and gas expertise - right here in the U.S. JPMorgan Chase’s commitment to CDR is an important industry catalyst that will help us grow our carbon removal operations, and we’re proud to be one of their early partners,” said Peter Reinhardt, co-founder and CEO of Charm Industrial according to a press release.
There was also a Memorandum of Understanding signed with CO280 Solutions, Inc. with an intent to buy up to 30,000 mtCO2e of CDR per year for delivery of up to 15 years. This will lead to an estimated removal of 450,000 mtCO2e.
“CO280 was created to deliver what the carbon market wants: durable, high-quality, affordable CDR at large scale…today,” said Jonathan Rhone, CEO of CO280 Solutions according to a press release. “JPMorgan Chase’s ambitious strategy to support high-quality carbon removal is a catalyst for growth and helps accelerate scale across these technologies. We’re thrilled to be selected as a CDR partner along with Climeworks and Charm.