Honeywell Carbon Capture Partnership with University of Texas

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Honeywell and the University of Texas at Austin have partnered together to drive down the cost of carbon capture from power plants and heavy industry.

The UT Austin team has created a system that will improve carbon capture performance.

This makes the process more efficient for industries such as steel, cement, chemical plants, coal, natural gas, and bio-energy power plants.

The licensing agreement with Honeywell enables UT Austin to commercially scale & make major contributions toward zero emissions.

The difference between UT Austin’s system and others is that they utilize an advanced solvent. This technology can be used within existing plants or included within new systems.

This can make carbon capture less expensive and more efficient.

Honeywell is capturing, storing, and utilizing approximately 15 million tons of carbon per year – with the potential to capture 40 million tons annually.

They are committed to reaching carbon-neutral operations and facilities by 2035.

Like carbon offset projects, Carbon Capture and Storage projects (CCS) are growing in popularity.

In 2020 alone, CCS projects captured and stored 40 million metric tons of carbon. However, to meet new emissions goals, CCS must increase to 840 million metric tons by 2030.

While increasing CCS project capacity 20x seems like a challenge, partnerships such as Honeywell and UT Austin can help get us there.

UT Austin has been a leader in carbon capture research for more than 20 years.

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Wall Street’s Carbon Crisis

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A new report shows that Wall Street is the fifth-largest carbon emitter, coming in just after Russia and before Indonesia.

In 2020, 8 of the largest US Banks and 10 of the largest US asset managers financed $2 billion tons of carbon emissions.

Though major corporations have shared their support for net-zero initiatives, the “Wall Street’s Carbon Bubble” report by the Sierra Club and the Center for American Progress (CAP) says it isn’t enough.

Some banks are continuing to fund oil and heavy industries, but many have joined the Glasgow Financial Alliance for Net Zero (GFANZ) to limit their investment in heavy emitters.

“If left unaddressed, climate change could lead to a financial crisis larger than any in living memory,” said Andres Vinelli, vice president of economic policy at CAP.

According to Insurer Swiss Re, the global economy could lose 18% of current GDP by 2048 if no action against climate change is taken. So, whether you are an environmentally-conscious investor or not, there is cause for concern.

The report went on to say that financial institutions across the 20 largest economies have $22 trillion worth of assets within carbon-intensive sectors.

Following the report’s release, SEC Commissioner Caroline Crenshaw acknowledged the concerns expressed but drew attention to actions taken at COP26.

Many public companies have pledged to reach net-zero with world leader support.

However, she did say, “It’s sometimes unclear to me how companies will achieve these goals. Nor is it clear that companies will provide investors with the information they need to assess the merits of these pledges and to monitor their implementation over time.”

Crenshaw added that “metrics calculated using reliable and comparable methodologies that enable investors to decide whether companies mean what they say” will play a significant role moving forward.

The Securities and Exchange Commission is looking at more rigid climate reporting rules from publicly traded companies, including banks.

A ruling could take place as soon as next year.

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Shipping Industry Insurance Companies Join the Net-zero Movement

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Six of the world’s major marine insurers have undertaken a ground-breaking project to give carbon emissions transparency and promote the shipping industry’s green transition.

The Poseidon Principles for Maritime Insurance (PPMI) establishes a methodology for quantifying and disclosing the climate alignment of marine insurers’ underwriting portfolios.

This aims at developing a sector-specific methodology to support the ambition of the Net-Zero Insurance Alliance (NZIA).

NZIA members have committed to transitioning their underwriting portfolios to net-zero GHG emissions by 2050.

This is in line with the International Maritime Organization (IMO) who adopted a zero-emissions target by 2050 at the COP 26 climate summit.

Signatories to the PPMI have committed to assessing and disclosing the climate alignment of their hull and machinery portfolios.

They have also benchmarked their alignment with two initial pathways:

A 50% reduction in annual CO2 emissions by 2050 compared to 2008 (this is in line with the IMO’s Initial GHG Strategy)
A 100% reduction in emissions by 2050.

Members include: Swiss Re, Gard, Hellenic Hull Management, SCOR, Victor International, and the Norwegian Hull Club.

More marine insurers are anticipated to join in the not-too-distant future.

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