Climate Insider Brief:
- Climeworks and Morgan Stanley signed a long-term partnership to remove 40,000 tons of CO₂, marking Climeworks’ second-largest contract, and supporting its U.S. expansion as a key player in the Direct Air Capture Hub Project Cypress.
- This partnership aligns with Morgan Stanley’s goal of achieving net-zero financed emissions by 2050, as well as its commitment to sustainable finance, demonstrated by its first purchase of Direct Air Capture credits.
- Climeworks’ advancements in Direct Air Capture, supported by the U.S. Department of Energy, aim to address residual emissions as the world faces record temperatures, with plans to establish one of the first megaton carbon capture hubs in the U.S.
PRESS RELEASE – Austin, Texas / October 24, 2024 – Climeworks, the global leader in carbon removal, signed a long-term agreement with Morgan Stanley to remove 40,000 tons of CO₂ from the air. The partnership, lasting until 2037, is Climeworks’ second-largest contract to date and will accelerate its scale-up in the U.S., where Climeworks is the anchor technology provider for the Direct Air Capture Hub Project Cypress supported by the U.S. Department of Energy. The purchase of Climeworks’ high-quality carbon removal service reflects Morgan Stanley’s commitment to supporting the development of new climate technology.
Driving forward the net-zero transition
Morgan Stanley has set an ambition to achieve net-zero financed emissions by 2050 and mobilize USD 1 trillion in sustainable finance by 2030. The financial services institution has partnered with Climeworks to secure a sizable volume of carbon removal credits, representing the Firm’s first purchase of Direct Air Capture credits.
“As a financial institution, Morgan Stanley plays an important role in helping to direct capital toward low-carbon solutions,” says Jessica Alsford, Morgan Stanley’s Chief Sustainability Officer. “Through our partnership with Climeworks, we are supporting the development of technology that can help drive the global economy’s transition to a more sustainable future.”
Carbon removal as the ‘net’ in net zero
The global economy will face significant challenges in reducing CO₂ emissions to absolute zero, even when implementing the most ambitious reduction measures. On top of historic CO₂ emissions already emitted into the atmosphere, these residual CO₂ emissions will continue to heat the planet, which is why large-scale carbon removal is necessary. In 2023, the global average temperature reached a record-breaking 1.45°C above pre-industrial levels and the damages from extreme weather events were estimated to be at least USD 92.9 billion in the U.S. alone.
A launchpad to reach climate-relevant scale
Climeworks already operates two Direct Air Capture plants in Iceland and delivers third-party certified carbon removal services to its customers. As the anchor technology provider for Direct Air Capture Hub Project Cypress in Louisiana, the company is on a trajectory to establish one of the nation’s first megaton Hubs, incentivized by the U.S. government’s Bipartisan Infrastructure Law.
SOURCE: Climeworks
Featured Image: Credit: Cimeworks
