JPMorgan Chase Signs Significant Carbon Removal Deals

by | May 25, 2023

Exterior building shot of JPMorgan Bank

(Credit: Canva Pro)

JPMorgan Chase, one of the world’s leading financial institutions, has invested in carbon dioxide removal (CDR) technologies. By signing long-term agreements worth over $200 million, JPMorgan Chase aims to remove and store 800,000 metric tons of carbon dioxide equivalent from the atmosphere. 

With the pressing concern about climate change, the market for carbon removal is expected to experience exponential growth by 2050. According to the Intergovernmental Panel on Climate Change, the world needs to remove 100 gigatons to 1,000 gigatons of carbon dioxide globally by 2100. Based on this information, JPMorgan Chase is looking to play a role in carbon removal.

JPMorgan Chase and the Partnerships Driving Carbon Removal Innovation

To support the development and scaling of CDR technologies, JPMorgan Chase has forged strategic partnerships with a number of leading organizations in the field. These partnerships include Climeworks, Charm Industrial, and Frontier, to name a few. The culmination of these partnerships is an investment in solutions and technology for carbon reduction and removal. 

According to JPMorgan, the investment in carbon removal companies is to support the still nascent carbon removal industry and will enable the bank to remove the equivalent of the carbon emissions that are otherwise hard to abate from its direct operations by 2030.

“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,” Daniel Pinto, president, and chief operating officer of JPMorgan Chase, said in a written statement.

While the voluntary carbon market is crucial for the low-carbon transition, JPMorgan Chase acknowledges the need for greater credibility and functionality within the market. The firm has published a white paper outlining its perspective on the role of the voluntary carbon market, current challenges, and how it aims to support a more effective carbon market. 

JPMorgan Chase is contributing to the development, scalability, and commercialization of CDR solutions by supporting the growth of carbon markets. As of May 2023, the carbon removal and storage deliveries from Charm for JPMorgan have already started, the bank said.

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