A new aim to achieve net-zero financed emissions by 2050 and mobilize USD 1 trillion in sustainable finance by 2030, has been set by Morgan Stanley. In order to achieve this goal, the financial services institution has made a new partnership with Climeworks with the intention of securing a sizable volume of carbon removal credits. Doing this would mark a significant step forwards for the company, as they would be purchasing their first Direct Air Capture credits.

It has been agreed that this partnership will last until 2037 and whilst it will benefit Morgan Stanley, it will also aid Climeworks when it comes to their intention to accelerate the scale-up of its Direct Air Capture technology within the U.S.

This new agreement is significant because it is Climework’s second-largest contract to date and it is hoped that this agreement will help to accelerate its scale-up in the U.S. Growing larger within the U.S. is important to this company, because Climeworks is the anchor technology provider to the Direct Air Capture Hub Project Cypress, which is currently supported by the U.S. Department of Energy.

Whilst this partnership is significant to Climeworks, it is also beneficial to Morgan Stanley because the purchase of Climework’s carbon removal service depicts Morgan Stanley’s commitment and dedication to supporting the development of new and innovative climate technology.

Projects like these are extremely important within the carbon capture industry right now, due to the fact that the global economy is facing and will face more significant challenges when it comes to reducing carbon emissions to absolute zero. This difficulty in reducing emissions will be present even when companies and industries are implementing large and ambitious reduction measures. The enormity of this issue can be shown through Climeworks, which currently has two operational Direct Air Capture plants based in Iceland and they also actively deliver third-party certified carbon removal services to their customers.

Morgan Stanley’s Chief Sustainability Officer, Jessica Alsford, commented, “As a financial institution, Morgan Stanley plays an important role in helping to direct capital toward low-carbon solutions. Through our partnership with Climeworks, we are supporting the development of technology that can help drive the global economy’s transition to a more sustainable future.”

Co-founder and co-CEO of Climeworks, Christoph Gebald, “Investing in carbon removal is more than an environmental responsibility—it's a strategic business move. By securing access to high-quality carbon removals now, companies position themselves ahead of the curve of future regulatory changes and competitive pressures. Orca and Mammoth represent just the beginning of a future trillion-dollar industry and Morgan Stanley understands the benefits of entering the market today.”