Morgan Stanley Joins the Direct Air Capture Movement with Climeworks Deal

[Social Media]

 

Morgan Stanley has taken a step towards advancing carbon removal technology through a new partnership with Climeworks, a Swiss company specializing in direct air capture (DAC) of carbon dioxide. This agreement, announced today, signals a shift in Wall Street's engagement with the emerging carbon capture sector, as financial institutions increasingly seek to purchase carbon removal credits to support climate goals.

 

 

The financial details of Morgan Stanley's investment remain undisclosed, but the bank's commitment involves capturing 40,000 tons of CO₂ from the atmosphere over the duration of the partnership, which extends until 2037. This collaboration follows a similar $20 million investment from JPMorgan last year, underscoring growing enthusiasm among major financial players to invest in long-term solutions for carbon removal.

 

Climeworks, known for its leading role in DAC technology, operates the world’s largest direct air capture plant, which opened this year in Iceland. With Morgan Stanley’s backing, the company aims to expand its technology, which focuses on efficiently capturing carbon dioxide from the ambient air and securing it for safe storage. According to Climeworks, this contract is its second-largest to date and is part of a broader effort to enhance DAC's impact. The company has also joined forces with the U.S. Department of Energy as a technology partner for Project Cypress Direct Air Capture Hub in Louisiana.

 

Morgan Stanley’s move to invest in DAC aligns with its broader sustainability goals, such as achieving net-zero financed emissions by 2050 and mobilizing $1 trillion in sustainable finance by 2030. This investment marks an expansion in the bank’s portfolio of climate-oriented projects, showing a proactive stance on emerging technologies as part of its strategy to address climate impacts. Christoph Gebald, co-founder and co-CEO of Climeworks, noted, “By securing access to high-quality carbon removals now, companies position themselves ahead of the curve of future regulatory changes and competitive pressures.”

 

However, the 40,000 tons of CO₂ targeted by Morgan Stanley's agreement represent only a small fraction of emissions at a global scale. This quantity equates to the annual carbon emissions produced by roughly 9,000 traditional gasoline-powered cars in the U.S., according to the Environmental Protection Agency. Although this number is modest, it reflects the current scale of DAC technology, which is still in its early stages. DAC is focused on removing residual CO₂ already present in the atmosphere, complementing efforts to reduce ongoing emissions by other means.

 

Morgan Stanley’s investment illustrates the financial sector’s increasing willingness to engage with innovative climate solutions that, while still in their infancy, hold the promise of supporting long-term climate stability. As Climeworks continues to scale its DAC technology, partnerships like these highlight a growing intersection between finance and technology in the fight against climate change, one that is likely to evolve as regulatory frameworks and environmental priorities advance.

 

Based on a report from AXIOS 2024-10-26

 

 

 

[KhunLA]

2 thoughts ...

... scam

... treating symptoms instead of causes

 

And people believe or endorse this crap.  I'm seeing a new carbon tax to finance the silliness.   Knew they would eventually find a way to charge you for the air you breathe.

 

FFS, they already charge you for water, the most abundant resource on the planet.  Amazing how stupid people are.

[digger70]

10 hours ago, Social Media said:

efficiently capturing carbon dioxide from the ambient air and securing it for safe storage.

Yea and How are they going to do that hey 40,000 Tons just for starters .

Freeze it and  bury that in ICE. ?   What a Laugh. 

How stupid they think people are to believe their Dreams .

An other Money Scam.

[rickudon]

Carbon capture and storage as a technology is a dead end. Every plant set up so far has been expensive, inefficient and uses up lots of energy to capture the carbon (and where's that energy coming from?).  The only efficient way is to enhance natural/geological processes  which capture carbon  - i.e. plants or weathering of rocks. Let nature work for you.