JPMorgan Is Investing $200m in Carbon Removal Efforts — Is the Tide Turning on Climate Change?

Key takeaways

• Banking titan JPMorgan has agreed to spend over $200 million on a combo of carbon removal companies
• Agreements are for previously announced Frontier, plus Climeworks and Charm Industrial
• Carbon removal industry is still in its infancy but could be set to be big

US banking giant JPMorgan has revealed its agreement to spend over $200 million on carbon removal tech. The news marks a major play in the world of climate tech and shows that the opportunity is ripe for investors looking to get in on clean tech, which is quickly hotting up into a multi-billion dollar industry. Let’s get into the details.

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What’s JPMorgan announced?

The bank had previously revealed it had signed a $75 million deal with benefits company Frontier last month. What’s the carbon removal link here? Frontier helps its members buy carbon removal through pre-purchase or off-take agreements in a bid to support the fledgling industry.

JPMorgan now also confirmed it’s invested $20 million with carbon removal company Climeworks. The nine-year agreement will help to fund the removal of 25,000 metric tons of carbon from the Earth’s atmosphere (using a fancy vacuuming process, no less).

Its third investment is with carbon storage company Charm Industrial, which specializes in converting excess organic material like corn plants into bio-oil. JPMorgan’s five-year deal with the company will remove 28,500 metric tons of carbon in that timeframe.

JPMorgan’s COO and president, Daniel Pinto, said the capital provided will help the companies to grow. “We’re working to drive scalable development of carbon removal and storage as commercial solutions and aim to send a strong market signal,” he said in a written statement.

For traders, it’s a promising sign that a big institution like JPMorgan is investing in climate tech. It’s a big vote of confidence that bigger companies are starting to shift towards environmentally friendly companies in a bid to save the planet.

There are several strands to the industry, such as hydrogen fuel cell development, nuclear energy safety improvements and sodium-ion batteries, to name a few. That means getting in at the ground now while still diversifying in the industry is possible.

The bottom line

Cynics would say the only reason banks and venture capitalists are moving towards helping climate change is because there’s money to be made. But as long as the effects of disastrous global warming can be slowed or even reversed, then it’s money well spent from the likes of JPMorgan.

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