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Some of the world’s biggest companies are coming together to fight climate change. Stripe, Alphabet, Shopify, Meta, and McKinsey Sustainability have announced they are committing an initial $925 million to accelerate the development of carbon-neutral technology. To that end, the companies created Frontier, an advanced market engagement (AMC) to accelerate the development of carbon removal technologies, according to an announcement.
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The goal is to send a strong demand signal to researchers, entrepreneurs and investors that there is a growing market for these technologies, according to the Frontier website.
“In concrete terms, its team of technical and commercial experts facilitates purchases from companies with high decarbonation potential on behalf of buyers. Over time, we plan to open Frontier to new buyers to further increase demand and stimulate new supply,” Frontier said.
He added that the concept of AMC is borrowed from vaccine development and was tested a decade ago.
Although the market dynamics of carbon removal and vaccines are not identical, they face similar challenges: uncertainty about long-term demand and unproven technologies, Frontier added.
“For the first time, we’re applying this model to large-scale carbon removal,” Stripe tweeted.
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Frontier said it doesn’t yet know how many tons of carbon removal $925 million will buy, but will target technologies that are high quality and have the greatest long-term potential, rather than what’s good. market today.
The United Nations’ Intergovernmental Panel on Climate Change (IPCC), in its report released April 4, wrote that carbon dioxide removal (CDR) “is required to achieve net zero emissions of CO2 and GHG emissions globally and nationally, offsetting hard-to-reduce emissions.” ‘ residual emissions. The CDR is also a critical component of scenarios that limit warming to 1.5°C or likely below 2°C by 2100, whether global emissions reach near zero, net zero or net negative levels.
” We are at the crossroads. The decisions we make now can ensure a viable future. We have the tools and the know-how to limit warming,” IPCC Chairman Hoesung Lee said in a press release on April 4. “I am encouraged by the climate measures taken in many countries. There are policies, regulations and market instruments that are proving effective. If these are scaled up and applied more broadly and equitably, they can support deep emission reductions and spur innovation.
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Frontier is managed by a team of technical and business experts, led by Stripe’s Chief Climate Officer, Nan Ransohoff.
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