Morgan Stanley Partners with Climeworks for CO2 Removal

Morgan Stanley has entered a significant partnership with Swiss firm Climeworks to remove 40,000 tonnes of CO2 from the atmosphere using direct air capture (DAC) technology, with the agreement lasting until 2037. This collaboration aligns with Morgan Stanley's goal of achieving net-zero financed emissions by 2050 and mobilizing $1 trillion in sustainable finance by 2030. Climeworks, which operates the world's largest DAC facility in Iceland, will utilize the funding to expand its operations, including planned sites in the U.S. The deal reflects a growing trend among financial institutions to invest in carbon removal technologies, as they face pressure to address climate risks tied to their investment portfolios. However, the scale of the CO2 removal remains modest compared to overall emissions levels, highlighting the early stage of DAC technology. Climeworks has also garnered support from other corporates like Microsoft and Stripe, emphasizing the increasing demand for effective carbon removal solutions.