Morgan Stanley & Climeworks’ Carbon Removal Strategy

In 2020, Morgan Stanley was the first major US-headquartered global financial services firm to commit to achieving net zero in financed emissions by 2050.
In 2022, the company achieved carbon neutrality across direct Scope 1 emissions, indirect Scope 2 from energy purchasing and Scope 3 from business travel and owned assets that are leased.
Morgan Stanley has also promised to mobilise US$1tn for sustainable solutions that support the UN Sustainable Development Goals by 2030 and achieve net-zero financed emissions by 2050.
The financial giant is certainly using its clout as one of the largest companies in the world to support sustainable initiatives.
The most recent addition to this impressive list?
Morgan Stanley has partnered with Climeworks to remove 40,000 tons of CO₂ from the air.
Morgan Stanley partners with Climeworks
Morgan Stanley’s partnership with leading carbon removal company Climeworks will last until 2037 and see the permanent removal of 40,000 tons of CO₂ from the atmosphere.
The partnership sees Morgan Stanley’s first purchase of Direct Air Capture (DAC) credits and is Climeworks’ second largest contract to date.
The partnership will also support global warming in a wider sense, through the acceleration of the scale-up of Climeworks’ DAC technology in the US where Climeworks is the anchor technology provider for the Direct Air Capture Hub Project Cypress, supported by the US Department of Energy.
“As a financial institution, Morgan Stanley plays an important role in helping to direct capital toward low-carbon solutions,” says 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.”
What is carbon removal?
Carbon removal is essential to achieving net-zero goals, filling the crucial gap where emissions cannot be eliminated entirely.
Even with aggressive reduction strategies, some industries will inevitably continue to produce CO₂ emissions.
Combined with the legacy of historical emissions already in our atmosphere, this creates an urgent need for large-scale carbon removal solutions.
The stakes are clear — 2023 saw global temperatures soar to 1.45°C above pre-industrial levels, while extreme weather events inflicted nearly US$93bn in damages across the US alone.
This reality underscores why carbon removal isn't just an option — it's a critical tool for counterbalancing both historic and hard-to-abate emissions in our fight against climate change.
Meet Climeworks
Climeworks pioneers large-scale atmospheric carbon removal through its cutting-edge DAC technology.
Operating the world's largest DAC facilities in Iceland, the company harnesses renewable energy to extract CO₂ from the air, which is then permanently stored underground through partnerships with specialists like Carbfix. This process is independently verified by DNV and Puro.earth, with its Orca facility achieving the industry's first Triple A rating from BeZero Carbon in 2024.
Beyond technological innovation, Climeworks offers comprehensive carbon removal portfolios that combine engineered and nature-based solutions.
The company serves leading global organisations including Microsoft, Boston Consulting Group, J.P. Morgan Chase & Co. and SWISS, helping them achieve their net-zero commitments.
As the anchor technology provider for Direct Air Capture Hub Project Cypress in Louisiana, the company is on a trajectory to establish one of the nation’s first megaton Hubs, incentivised by the US Department of Energy’s Bipartisan Infrastructure Law.
With ambitious plans to scale to gigaton removal capacity by 2050, Climeworks is instrumental in the global fight against climate change.
“Investing in carbon removal is more than an environmental responsibility — it's a strategic business move,” says Christoph Gebald, Co-Founder and Co-CEO of Climeworks.
“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.”
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