
Major news has just emerged last week that JPMorgan Chase & Co., Autodesk, H&M Group, and Workday have committed a collective $100 million to carbon dioxide removal (#CDR) efforts via #Frontier, which already has $925 million in commitments from a range of companies including owner Stripe, Alphabet Inc., McKinsey & Company, Meta and Shopify. This marks a significant milestone in corporate responsibility and big businesses investing in CDR solutions.
How does Frontier work?
💡 Frontier is an advance market commitment (#AMC) with the goal of accelerating the development of CDR technologies by guaranteeing a future demand for them.
🔏 It helps companies purchase #carbonremoval by allocating capital invested by these companies into CDR companies in the Frontier portfolio through pre-purchase agreements or offtake agreements.
✅ All its funded CDR solutions must meet the following criteria: #permanence (lasting 1,000+ years), #cost (less than $100/ton at scale), #capacity (over 0.5 gigatons/year at scale), and #additionality (the CO2 removed could not have been reduced any other way).
Why are buyers’ clubs important?
❗ Demand is currently one of the biggest challenges CDR is facing, with only 20+ companies procuring CDR at scale in 2022.
📈 Buyers’ clubs like Frontier consisting of financial corporate commitments send a strong signal that there is a demand and growing market for CDR technologies.
🗺 They also provide necessary guidance for corporate buyers through the process of choosing CDR projects to invest in, making the purchase process for corporations more seamless.
Frontier crossing the $1b threshold is encouraging for both the growing demand in the CDR market and the further development of scalable CDR projects. I am eager to see more and more corporate companies make similar commitments to decarbonisation technology for a cleaner and more sustainable future.
What do you think about buyers clubs like Frontier? Will it help scale demand in the voluntary carbon market (VCM) for CDR sufficiently?
Read more here: https://lnkd.in/d9NRTDtp
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