In a blockbuster new deal that could be a sign of things to come, one of the world's largest banks, JPMorgan Chase, is spending $200 million to remove carbon dioxide permanently from the atmosphere.
Working with companies like Charm Industrial and ClimeWorks and project developers and funders Frontier Climate and CO280 Solutions, JPMorgan Chase expects to remove 800,000 metric tons of greenhouse gases from the atmosphere.
The purchase should help the company meet its emissions reductions targets by 2030, JPMorgan Chase said in a statement.
“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,” said Ashley Bacon, Chief Risk Officer, JPMorgan Chase, in a statement.
The slew of deals include one of the largest purchases of carbon dioxide removal services from a direct air capture company. That agreement, with Climeworks, should result in 25,000 metric tons of greenhouse gases being removed from the atmosphere through Climeworks' carbon sucking industrial plants.
America's biggest bank is also buying another 28,500 metric tons of removal service from Charm Industrial. That company converts agricultural waste into an oil-like substance and then stores that oil permanently underground.
What makes the JPMorgan Chase investment so significant is that it gives these new companies a much needed boost of revenue to build out their operations so the costs of their services can come down.
Basically JPMorgan is paying more now so other companies can pay less for these technologies in the future.
“Alongside facilitating sustainable finance and supporting clients in the energy transition, within our operations, we’re first reducing emissions to minimize our environmental impact and then addressing what we can’t yet abate,” said Brian DiMarino, Head of Operational Sustainability, JPMorgan Chase, in a statement. "Our goal is to remove and durably store one ton of CO₂ for every ton of unabated direct operational emissions by 2030. Working with partners like Charm, Climeworks, CO280 and Frontier supports these objectives and helps bring innovative solutions to market at scale."
That's also what's driving the bank's deal with Frontier Climate -- a new fund set up by a group of big tech, consulting, and financial services companies to boost new technology companies removing carbon dioxide -- and other greenhouse gases -- from the atmosphere.
Finally, JPMorgan said it would work with CO280 Solutions to buy another 450,000 metric tons of greenhouse gas capturing projects.
“These agreements will meaningfully contribute to moving carbon removal forward as a solution available to a wider range of buyers, including our clients,” said Heather Zichal, Global Head of Sustainability, JPMorgan Chase.