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illuminem summarizes for you the essential news of the day. Read the the full piece on CNBC or enjoy below
🗞️ Driving the news: Stripe, Shopify, and H&M Group are investing $7 million into 12 carbon removal startups
• This deal, initiated by Frontier, a public benefit company under Stripe, aims to accelerate the development of carbon removal technologies using various techniques
🔭 The context: Frontier was launched in April 2022 to advance carbon removal methods and create future demand for the emerging sector
• Member companies, including Stripe, Shopify, and H&M, are actively funding efforts to remove carbon emissions via innovative startups like Alkali Earth, CarbonBlue, and Mati, among others
🌎 Why it matters for the planet: The urgency to remove carbon emissions grows as climate change accelerates
• Current efforts by companies may seem small relative to global emissions, but they offer hope for refining and scaling techniques over time
• The United Nations Intergovernmental Panel on Climate Change (IPCC) underlines that while immediate emission reductions are vital, carbon removal is equally crucial for limiting global warming
⏭️ What's next: Frontier, which has secured over $1 billion from member companies, will now use different purchase methods to support carbon removal
• Pre-purchase agreements, like the recent $7 million investment, back early-stage companies while offtake agreements are reserved for more mature companies
💬 One quote: “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,” (Joanna Klitzke, Frontier lead)
📈 One stat: In 2022, 36.8 billion metric tons of carbon emissions were emitted solely for energy production, as per the International Energy Agency (IEA)
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