This is Climeworks’ second-largest contract to date and will accelerate its scale-up in the U.S., where Climeworks is the anchor technology provider for the Direct Air Capture Hub Project Cypress supported by the U.S. Department of Energy. The purchase of Climeworks’ carbon removal service reflects Morgan Stanley’s commitment to supporting the development of new climate technology.
Morgan Stanley has set an ambition to achieve net-zero financed emissions by 2050 and mobilize USD 1 trillion in sustainable finance by 2030. The financial services institution has partnered with Climeworks to secure a sizable volume of carbon removal credits, representing its first purchase of Direct Air Capture credits.
“As a financial institution, Morgan Stanley plays an important role in helping to direct capital toward low-carbon solutions,” said Jessica Alsford, Morgan Stanley’s Chief Sustainability Officer. “Through our partnership with Climeworks, we are supporting the development of technology that can help drive the global economy’s transition to a more sustainable future.”
The global economy will face significant challenges in reducing CO2 emissions to absolute zero, even when implementing the most ambitious reduction measures. Climeworks already operates two Direct Air Capture plants in Iceland and delivers third-party certified carbon removal services to its customers.
“Investing in carbon removal is more than an environmental responsibility—it's a strategic business move. By securing access to high-quality carbon removals now, companies position themselves ahead of the curve of future regulatory changes and competitive pressures. Orca and Mammoth represent just the beginning of a future trillion-dollar industry and Morgan Stanley understands the benefits of entering the market today,” said Christoph Gebald, co-founder and co-CEO of Climeworks.