Investor group bans carbon removal from CO2 reduction plans

https://www.reuters.com/business/sustainable-business/investor-group-bans-carbon-removal-co2-reduction-plans-2023-01-31/

The Net Zero Asset Owner Alliance (NZAOA), managing $11 trillion in assets, has prohibited its members from incorporating carbon removal schemes into their emissions reduction plans before 2030. This decision aims to redirect focus toward urging investee companies to actively reduce emissions across sectors rather than relying on post-emission carbon removal strategies like tree planting. Concerns regarding the quality of such removal schemes and criticism of companies resorting to carbon credits instead of improving their own carbon footprints have influenced this move. Despite recognizing the necessity of carbon removal for addressing climate change by 2050, the NZAOA insists on prioritizing immediate real-world emissions reduction until 2030. However, not all investors support this rigid approach, with some acknowledging the potential benefits of early action in directing capital towards conservation and nature projects, particularly as oversight improves to safeguard against losing vital natural resources like forests.