Recent developments, such as new initiatives launched during COP26 or the release of the new SBTi Net Zero Standard, prove that high-quality carbon removal must be an essential component of net zero roadmaps in addition to emissions reduction efforts.
LGT, the world’s largest family-owned private banking and asset management group, has just signed a ten-year carbon removal agreement with Climeworks to remove 9’000 tons of CO₂ from the air – the largest-ever direct air capture agreement signed by a bank. LGT’s purchase is the third ten-year agreement for Climeworks within just 5 months, showing that the long-term demand for high-quality carbon removal, such as Climeworks’ direct air capture and storage, is strongly increasing.
Climeworks will permanently remove 9'000 tons of CO2 from the air for LGT
One of the four goals of this year’s COP26 was to mobilize 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. “To meet the commitments made in the Paris Agreement and keep 1.5 alive, we need […] to unleash the trillions required in private investment to create a net zero future”, said COP26 President Alok Sharma.
To truly achieve net-zero emissions, emissions reductions must come first; however, removing CO₂ is needed in addition to both neutralize unavoidable emissions and remove excess CO₂ from the air. The private sector acts as a key enabler driving both reductions and removals by helping to advance innovative solutions.
Through its new long-term carbon removal agreement with Climeworks, LGT sets a strong example in the financial services industry. LGT has a long-standing commitment towards sustainability and pledged to reduce its CO₂ emissions from its operations and investments to net zero by 2030. To achieve this, LGT will reduce its emissions as much as possible, while neutralizing any unavoidable emissions through carbon removal.
As part of this commitment, LGT purchased 9’000 tons of carbon dioxide removal from Climeworks – the so far largest direct air capture agreement signed by a bank. The financial services sector shows leadership in advancing the carbon removal market: LGT is the latest and largest example, following earlier purchases from Stripe, Klarna and Square, Inc.
“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”, says S.D. Prinz Max von und zu Liechtenstein, Chairman of LGT.
Read the full press release here.