Online payment processor Stripe has partnered with Alphabet, Meta, Shopify and McKinsey & Company to invest in carbon-eliminating technologies.
Their new initiative, dubbed Frontier, aims to buy $925 million worth of permanent carbon removal by 2030, scaling up deployment and making it affordable for other companies looking to reduce their own pollution.
“The goal is to send a strong demand signal to researchers, entrepreneurs and investors that there is a growing market for these technologies,” according to the program’s website. “Frontier aims to help create a new net carbon-offset offering rather than competing with what exists today.”
The group will act on behalf of buyers and suppliers, facilitating agreements and aggregating demand from buyers who want to reduce greenhouse gas emissions and suppliers who do so for them.
As each shopper determines their maximum annual spend between 2022 and 2030, Frontier aggregates demand to determine an estimated price cap and facilitates purchases up to that amount. “We expect the annual amounts of money spent and tonnage disposed of to increase significantly over the life of the commitment as the field of carbon removal matures,” the project page explains.
Frontier has set strict criteria for participants, including the ability to store carbon for over 1,000 years, charge less than $100 per ton at scale, reduce atmospheric carbon dioxide, and use scientifically transparent for monitoring and verification. Importantly, solutions must result in further carbon removal – customers cannot simply take credit for removal that was already going to happen.
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“Frontier will target technologies that are of high quality and have the greatest long-term potential, rather than what is cheap today,” according to the initiative. “For this reason, we do not know in advance how many tons we will be able to buy, nor what the price per ton will be.”
Wholly owned by Stripe, Frontier is led by climate chief Nan Ransohoff, with seed funding from its founding partners.
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