Inside JPMorganChase's Carbon Removal Procurement Strategy
Read the designed version of the JPMorgan Buyer Spotlight.
Why Carbon Removal?
In 2023, JPMorganChase announced its intention to help scale investment in emerging carbon removal technologies as part of its broader participation in the voluntary carbon market. Since then, the Firm has purchased more than $200 million in carbon removal credits to help address residual operational emissions that cannot yet be abated. Before adopting this strategy, JPMorganChase conducted extensive research across the organization to evaluate how carbon removal could support the Firm's broader business objectives and create value for stakeholders as market conditions evolve. Since its 2023 announcement, JPMorganChase has continued to build out its CDR portfolio, supporting a diverse range of high-integrity carbon removal pathways.
Portfolio Highlights
More than $200 million in CDR credits purchased
Portfolio spans carbon removal pathways including:
Bioenergy with Carbon Capture and Storage
Biomass Carbon Removal and Storage
Direct Air Capture
Enhanced Rock Weathering
Biochar
Improved Forest Management
Afforestation, Reforestation, and Revegetation
For JPMorganChase, carbon dioxide removal is an important tool that helps…
Support clients navigating the voluntary carbon market: JPMorganChase helps mobilize capital and improve liquidity toward high-integrity carbon projects.
Support local communities: Carbon removal can bring economic value and positive impact to communities and the environment.
Address its direct emissions: JPMorganChase sees carbon removal as a tool for addressing residual emissions that cannot yet be abated.
Build market expertise: JPMorganChase’s participation in the carbon removal market has helped develop expertise, strengthened industry relationships, and deepened its understanding of emerging technologies, market dynamics, and project quality.
Every business has different ambitions and goals, so it’s important to understand what matters to your organization and how investing in CDR can support the broader business objectives and add commercial and stakeholder value.
“Every business has different ambitions and goals, so it’s important to understand what matters to your organization and how investing in CDR can support the broader business objectives and add commercial and stakeholder value.”
Deciding What Credits to Buy
JPMorganChase approaches carbon removal procurement with a focus on quality, integrity, and delivery confidence. The Firm uses its Carbon Market Principles, informed by market research as well as existing industry guidance and standards. Priority projects have strong scientific credibility, robust measurement, reporting and verification processes, and a clear pathway to delivery.
Utilizing a portfolio approach, JPMorganChase supports a range of carbon removal solutions across different technologies, durability profiles, impacts, scale-up pathways, and cost structures. This strategy helps diversify delivery, methodology, and policy risks while supporting benefits for local communities and stakeholders.
JPMorganChase recently announced its agreement to purchase 60,000 tons of carbon removal from Graphyte, a biomass burial carbon removal company. The project converts agricultural and forestry waste into durable carbon storage while supporting a market for forest-thinning materials generated through wildfire reduction efforts. In addition to the project’s carbon removal potential, JPMorganChase chose to work with Graphyte because of its demonstrated delivery track record, community benefits, and role in supporting wildfire risk mitigation.
“Graphyte is bringing economic value and positive impact to communities, as well as preventing and reducing wildfire risk. This resonates with our clients, customers, and communities.”
Lessons for Potential Buyers
As companies consider carbon removal purchases, some factors to keep in mind:
Understand your footprint – Before evaluating carbon removal purchases, understand your emissions impact and identify which emissions can be avoided or reduced directly. Carbon removal is most effective when integrated into a broader decarbonization strategy.
Define your impact strategy – Beyond carbon removal, many projects deliver additional environmental and community benefits. Buyers should consider which projects align with their organization’s priorities, from geographical footprint to co-benefits, like wildfire resilience, nature restoration or job creation.
Build a durable business case – Successful CDR strategies are grounded in a clear understanding of organizational priorities and are designed to endure evolving market conditions. Demonstrating how CDR supports broader business objectives such as community engagement, client delivery, and thought leadership, can help build confidence.
Leverage existing frameworks – Buyers don’t need to build their evaluation criteria from scratch. JPMorganChase’s Carbon Markets Principles were informed by existing market guidance and expert input, including leading frameworks and standards. Established frameworks and standards can accelerate the evaluation process and strengthen the credibility of purchasing decisions.
