Net-Zero Asset Owner Alliance calls for scaling up of carbon dioxide removal solutions
Net-Zero Asset Owner Alliance paper states Asset Owners must scale investment into impactful carbon management and negative emissions technologies both inside and outside of value chains.
The Alliance recognises the need for investors to cut GHG emissions across all systems.
To meet the 1.5°C pathway, carbon dioxide removal (CDR) solutions must be rapidly scaled to remove 0.5 to 1.2 Gt of CO2 per year by 2025, in addition to decarbonisation efforts.
The IPCC previously warned that the world is currently on a 3°C pathway, and action to reduce CO2 emissions must be improved to minimise global warming effects.
The lack of investment and failure to develop initial CDR pathways has now created the risk that CDR solutions will not be readily available as a resource when needed at scale.
Günther Thallinger, member of the board of management, Allianz SE, says: “The importance of carbon dioxide removal techniques and technologies in addressing unabated emissions must not be underestimated.”
“Massive investment in these solutions both inside and outside the value chains of investee companies, combined with a drive toward more mature carbon markets, are now critical to achieving the Paris Agreement goals.”
“What we are missing in the mix is strong policy support. Financial incentives, through a price on carbon, subsidies or tax rebates have been vital to accelerating the deployment of sustainable technologies thus far. We believe that the “incentives + mandate” approach must also be applied to the development of CDR technologies and deployment of nature-based solutions.”
Large-scale CDR will play a crucial role in helping achieve the net zero targets by 2050 and limiting global warming to 1.5°C.
The increase in investment and progression of strong policy support for tightening the complementary carbon credit market will drive forward the transition to a global green economy.
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24 September 2021
Climate Action
