LONDON: Swiss company South Pole is developing a carbon removal purchase facility with Japan's Mitsubishi Corp which aims to procure US$300 million to US$800 million worth of carbon dioxide removal credits by 2030, South Pole said on Friday.
More than 190 countries have signed up to the Paris climate agreement designed to limit global warming at 1.5 degrees Celsius, but even with pledges of huge reductions in emissions many scientists believe technology to remove CO2 from the atmosphere will also be needed to meet the goal.
The new facility"will provide a secure revenue stream for new carbon removal technologies to accelerate their development. Importantly, it will help drive down the price per ton of CO2 removed over time," said Patrick Burgi, co-founder and director of innovation at South Pole.Many companies have set net zero emissions targets which will require them to purchase carbon offset credits to compensate for the emissions they are unable to cut themselves.
Burgi said buyers could expect to pay around US$50-100 per ton for its credits and that South Pole is in advanced discussions with three initial buyers.
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