Energy Efficiency, GHG Emissions - April 18, 2022
Alphabet, Meta, Shopify, Stripe Join Carbon Removal Commitment
Alphabet, Meta, Shopify, and Stripe will partner with McKinsey Sustainability as part of an eight-year $925 million commitment to accelerate the development of permanent carbon removal technologies by guaranteeing future demand.
The joint effort, called Frontier, is an advanced market commitment (AMC), which aims to expand the global supply of carbon removal, rather than increase competition for the supply that exists today.
“Reaching net zero emissions is key to building environmental resilience and to realizing a future that delivers sustainable and inclusive growth. Carbon removals have an essential role to play,” says McKinsey Senior Partner, Dickon Pinner, in a statement. “Frontier will play a catalytic role in enabling the supply of high-quality carbon removals.”
Carbon removals work alongside emissions reduction solutions and they are not a substitute. But at the current pace, the pipeline of carbon removal projects will fall short of the volume of carbon removals the Intergovernmental Panel on Climate Change (IPPC) says is required in 2025 by 80%.
Recent analysis by McKinsey Sustainability for the Coalition for Negative Emissions finds that it’s possible to scale carbon removals sustainably to meet the climate need with a portfolio of approaches. However, once carbon removals are deployed at gigaton scale, the average cost could decrease dramatically, saving anywhere from $4.2 trillion to $8.4 trillion to deploy as compared to today’s costs.
An advanced market commitment like Frontier can play a crucial role and Frontier will both facilitate low-volume pre-purchase agreements for new carbon removal technologies and invest in future tons of carbon removal to help scale effective technologies.