As I’ve become even more aware of our limited carbon budget to remain within 1.5 (or realistically 2C) scenario. It’s clear CDR will have to play a role, even if it won’t scale fast enough to limit most of the short term consequences, longer term if we don’t have CDR in play we could be setting up a (mostly) uninhabitable planet for our ancestors.
So how do we move faster? Financially incentivize the largest players who could most benefit from CDR scaling up: Oil Companies.
In the ongoing quest to present themselves as eco-friendly and sustainable, many oil companies have turned to Carbon Dioxide Removal (CDR) technologies.
But why aren’t they fully committing to it, like funding a dedicated CDR fund? I mean at minimum something that matches Frontier’s Advanced Market Commitments, but go a step further to also become the go-to backer from early stage equity, advanced market commitment and growth stage/project financing. Given the clear trends, benefits, and minimal downside, it seems like a no-brainer for an oil company to take this playbook I propose:
Big Oil Invests in CDR Tech: Oil companies pour money into cutting-edge carbon removal technology, presenting themselves as the champions of a greener future.
Greenwashing Galore: With slick marketing campaigns, they tout their commitment to sustainability, ensuring the world sees them as eco-friendly saviors.
Leveraging CDR for Enhanced Oil Recovery: They integrate CDR technology into their operations to improve processes like enhanced oil recovery, making fossil fuel extraction more efficient and extending the life of their reserves.
Continued Fossil Fuel Dependence: By investing in CDR, these companies justify ongoing fossil fuel extraction, arguing that any emissions can just be captured and removed.
Market Domination: Eventually, they monopolize the CDR market, squeezing out genuine environmental innovators and ensuring their dominance in the industry remains unchallenged.
Global Expansion: The oil companies expand their CDR operations globally, outcompeting smaller, dedicated green startups and ensuring that the world remains dependent on their technology and resources.
The specifics on the funding mechanism and structure aren’t rocket science, as many of the pieces of the puzzle have already been developed by many innovative climate tech financiers. Even seeding some of those peers of mine would further widen their net and capture the best in class CDR opportunities.
