LGT, the family-owned private bank and asset manager, has secured one of the largest direct-air carbon capture agreements in a bid to offset its emissions.
LGT has signed a 10-year carbon removal agreement with Climeworks, which will see it remove 9,000 tons of carbon dioxide from the air.
This is the largest direct air capture agreement signed by a bank, and according to LGT shows how the financial services industry is driving carbon removal initiatives.
One of the four goals of this year’s COP26 was to mobilise 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. Carbon capture has been seen to being a key component of helping economies meet their net zero targets.
The private sector is being seen as a key enabler driving both reductions and removals by helping to advance innovative solutions.
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: turning the CO2 into stone, so removing it from the atmosphere.
Climeworks points out that its technology is scalable and does not compete with arable land. It launched its new large scale direct air capture and storage plant, ‘Orca’ in Iceland in September.
LGT chairman S.D. Prinz Max von und zu Liechtenstein adds: “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.”
Climeworks co-CEO and co-founder Christoph Gebald says: “This is the third 10-year agreement for Climeworks, showing the increasing long-term demand for our solution. It is also 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.”