The Net-Zero Asset Owner Alliance has published a Request for Information (RfI), inviting asset managers to share insights on investment vehicles for carbon dioxide removal (CDR) and addressing the obstacles that stand in the way of bolder CDR investments.
The UN-convened alliance is launching this RFI in an attempt to accelerate investments and the deployment of nature- and tech-based carbon removal solutions, a critical tool in the global fight against climate deterioration.
Representing a member-led initiative of 88 institutional investors, the Net-Zero Asset Owner Alliance is focused on transitioning investment portfolios to net-zero by 2050, while prioritizing the transition in the real economy.
Acknowledging that reaching these goals will require the scale-up of CDR investments, the alliance is now gathering feedback from stakeholders, hoping to facilitate knowledge-sharing and capacity building that will ultimately lead to a rise in carbon removal investments.
The current CDR market is home to solutions that have limitations when it comes to commercial viability, while the demand for carbon removal in the long term is uncertain.
Looking to address these issues, the Net-Zero Asset Owner Alliance is calling on asset managers to help shape the creation of scalable investment vehicles for carbon dioxide removal and support additional efforts that will address the investment barriers in this sector.
Specifically, the Request for Information is looking for answers in two parts.
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The first part contains general questions that are intended for asset managers who are currently investing or seeking to invest in CDR, while the second one is vehicle-specific questions, meant for asset managers with an investment vehicle that meets the requirements outlined in the survey.
Beyond addressing these imminent roadblocks, the Net-Zero Asset Owner Alliance also points out the need for a supportive policy network that would boost the scale-up of CDR investments.
That is why, looking ahead, the alliance intends to work on designing policy solutions that could introduce meaningful advances in the CDR investment space.
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