A group of major investors has called on electric utilities to stop using carbon capture and offsets as part of their decarbonization strategies.
Specifically, the investors have urged companies to stop the use of carbon capture due to its high costs and the risks associated with it.
The group known as the Climate Action 100+ released a report earlier this year, in October, titled “Investor interventions to accelerate net zero electric utilities”.
Its aim was to promote constructive relationships between investors and electric utility companies with the aim of reaching net-zero targets.
Some of the names of the over 600 group members include investment giants like BlackRock and State Street Global Advisors.
Yet despite these warnings, the Department of Energy (DOE) is still funding projects that were launched during the Trump administration and continues to study the use of carbon capture at coal-fired power plants.
In fact, some of the coal carbon capture projects are applying for loan guarantees from the DOE and the US government to fund their projects that have already been turned down by investors.
In their report, the Climate Action 100+ group outlines the steps necessary for electric utilities companies to reach net-zero emissions from electricity generation by 2035.