Stripe, Shopify, H&M spend $7 million on carbon removal from a dozen new companies

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The deal was facilitated by Frontier, a public benefit company started by payment processing company Stripe to accelerate the development of carbon removal tech.

All of these efforts today are capturing minuscule amounts of carbon emissions compared with the quantity of emissions being released — humanity emitted 36.8 billion metric tons of CO2 in 2022 just to produce energy,. But the thought behind Frontier is that these techniques will be tested and built out over time.

And the carbon removal industry will need to grow dramatically in order for humanity to achieve its climate goals, according to the. Carbon dioxide removal cannot be a "substitute for immediate and deep emissions reductions, but it is part of all modelled scenarios that limit global warming to 2 degrees or lower by 2100," the IPCC says.

Stripe Climate began carbon removal purchases in 2020 and Frontier launched a couple years later. Since then, there has been an increase in both the quantity and quality of applications, Klitzke told CNBC. Carboniferous is one of two companies that stripe is announced Thursday that it has provided $250,000 in a research and development grant to. Carboniferous is developing a process to sink leftover surgar cane fiber and corn stover into the deep oxygenless parts of the Gulf of Mexico."In my mind, that's a really encouraging sign that the field is growing and maturing," Klitzke told CNBC.

For Frontier, the idea of carbon removal is not isolated from a primary climate goal of "really, really deep, deep emission reductions and fossil fuel phase out," Klitzke told CNBC. "The role of carbon removal is fully to address legacy emissions and is not to be an offset or an excuse for the fossil industry."

 

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