JPMorgan Chase on Tuesday announced it will spend $200 million to help scale the growth and development of carbon dioxide removal (CDR) technologies.
The US banking behemoth aims to remove and store 800,000 metric tons of carbon dioxide equivalent through four deals unveiled on Tuesday:
- A nine-year agreement with Climeworks for removal of 25,000 metric tons of CO2 equivalent, in what the bank called one the largest-ever purchases of CDR services via direct air capture and storage
- Purchase of bio-oil CDRs for removing and storing approximately 28,500 metric tons of CO2 equivalent from Charm Industrial over five years. JPMorgan Chase said deliveries have already begun
- A long-term agreement with CO280 Solutions, Inc, to purchase CDR services of up to 30,000 metric tons of CO2 equivalent per year for up to 15 years, totaling to the removal of as much as 450,000 metric tons of CO2 equivalent over the length of the deal
- A commitment of $75 million to Frontier to help the company accelerate CDR technologies, through the purchase of $50 million CDR credits and the provision of $25 million in financing to help clients meet their climate targets
Ashley Bacon, Chief Risk Officer, JPMorgan Chase, said at the announcement: "These agreements reflect our ambition to support scale, innovation and evolution in these technologies. Alongside reducing emissions, the world needs significant investment in durable carbon removal solutions with gigaton-scale potential."
Daniel Pinto, President and Chief Operating Officer, JPMorgan Chase, added: "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."