Recent developments, such as new initiatives launched during COP26 or the release of the new SBTi Net Zero Standard, prove that high-quality carbon removal must be an essential component of net zero roadmaps in addition to emissions reduction efforts.
LGT, the world’s largest family-owned private banking and asset management group, has just signed a ten-year carbon removal agreement with Climeworks, who will remove 9’000 tons of CO2 from the air for them – the largest-ever direct air capture agreement signed by a bank.
LGT’s purchase is the third ten-year agreement for Climeworks within just 5 months, showing that the long-term demand for high-quality carbon removal, such as Climeworks’ direct air capture and storage, is strongly increasing.
The financial services sector shows leadership in advancing the carbon removal market: LGT is the latest and largest example, following earlier purchases from Stripe, Klarna and Square, Inc.
The financial sector as a key enabler of climate action
One of the four goals of this year’s COP26 was to mobilize the finance sector for its potential to drive the carbon removal market through both investments strategies and its own plans to deliver net zero climate targets. “To meet the commitments made in the Paris Agreement and keep 1.5 alive, we need […] to unleash the trillions required in private investment to create a net zero future”, said COP26 President Alok Sharma.
To truly achieve net-zero emissions, emissions reductions must come first; however, removing CO2 is needed in addition to both neutralize unavoidable emissions and remove excess CO2 from the air. The private sector acts as a key enabler driving both reductions and removals by helping to advance innovative solutions.
Climeworks’ carbon dioxide removal via direct air capture technology is the only available solution that can reduce atmospheric concentration of CO2 in a scalable manner by capturing CO2 from the air today and storing it permanently underground.
Private banking group LGT commits to long-term carbon removal with Climeworks
Through its new long-term carbon removal agreement with Climeworks, LGT sets a strong example in the financial services industry. LGT has a long-standing commitment towards sustainability and pledged to reduce its CO2 emissions from its operations and investments to net zero by 2030. To achieve this, LGT will reduce its emissions as much as possible, while neutralizing any unavoidable emissions through carbon removal.
As part of this commitment, LGT purchased 9’000 tons of carbon dioxide removal from Climeworks – the so far largest direct air capture agreement signed by a bank. The financial services sector shows leadership in advancing the carbon removal market: LGT is the latest and largest example, following earlier purchases from Stripe, Klarna and Square, Inc.
About Climeworks’ direct air capture and storage technology
Powered solely by renewable energy, Climeworks’ direct air capture plants capture CO2 from the air. In Iceland, Climeworks’ storage partner Carbfix mixes the CO2 with water and pumps it deep underground where it reacts with the basaltic rock formations and mineralizes: the CO2 literally turns into stone and is thus permanently removed. Climeworks’ technology is scalable and does not compete with arable land. This September, Climeworks launched its new large-scale direct air capture and storage plant “Orca” in Iceland, bringing large-scale direct air capture technology to reality.
“We are proud and excited to enter this carbon removal agreement with LGT. It is very strong for two reasons: first, it is the third ten-year agreement for Climeworks, showing the increasing long-term demand for our solution, and second, it is the largest-ever direct air capture agreement signed by a bank. LGT, and the financial services industry more broadly, shows true leadership in advancing the carbon removal market.”
Christoph Gebald, co-CEO and co-founder of Climeworks
“We have to try in all areas and with all means to improve our CO2 balance in order not to lose the fight against climate change. For this purpose, Climeworks develops new technological solutions that are scalable and have good further development potential. For LGT, supporting innovative companies with promising technologies is an elementary component in the fight against climate change. As a company that aims to act responsibly and sustainably, it is important to us to achieve a net-zero CO2 balance as soon as possible. Our long-term partnership with Climeworks is a further step in this direction.”
S.D. Prinz Max von und zu Liechtenstein, Chairman of LGT
Climeworks empowers people and companies to fight global warming by offering carbon dioxide removal as a service via direct air capture (DAC) technology. At Orca, Climeworks’ DAC facility in Iceland, the CO2 is permanently removed from the air by capturing and geologically storing it for thousands of years with Climeworks’ storage partner Carbfix. Climeworks’ DAC facilities run exclusively on clean energy, and our modular CO2 collectors can be stacked to build machines of any capacity.
Founded by engineers Christoph Gebald and Jan Wurzbacher in 2009, Climeworks is on a journey to climate impact at scale. To do so, we strive to inspire 1 billion people to act and remove CO2 from the air. Climeworks is spear-heading the DAC industry globally, with the world’s largest DAC facility and storage installation in operation and a team of 300 Climeworkers determined to contribute to a net-zero future. Our growing customer base includes over 160 companies, including multinationals such as Microsoft, BCG, UBS or Swiss Re, as well as more than 18,000 individual Climate Pioneers.
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