Nordea Partners With Inherit for 68,000 Tonnes CO2 Removal

Nordic banking behemoth Nordea has made significant progress toward realizing its sustainability objectives by signing a multi-year agreement with Norwegian company Inherit Carbon Solutions. At least 68,000 tonnes of carbon dioxide (CO2) will be removed and sequestered using bioenergy with carbon capture and storage (BECCS) technology according to the deal. The project not only enhances Nordea's carbon removal plan but also supports the upscaling of innovative carbon capture technologies within the Nordic market.

The agreement is one of the elements of Nordea's wider ambition to have a net-positive carbon footprint from its activities by 2030. Peter Sandahl, Nordea's Head of Climate & Environment, underlined the importance of the deal, describing it as a breakthrough in the sustainability strategy of the bank. He also pointed out the bank's ambition to finance innovative solutions enabling large-scale removal of carbon, thereby long-term contributing to climate action.

The project will capture CO2 from a Danish biogas facility, where emissions produced from organic waste on farms will be liquefied and sequestered forever under the North Sea. The operation, which should start producing carbon removal credits in 2026, is one of the first operational BECCS projects in the Nordic area. Through the program, Nordea is not only mitigating its own carbon emissions but also helping to lead the development of the broader carbon removal sector.

We work eagerly toward the development of this promising project with Inherit, as it is among the first projects to begin operations in the Nordic countries. With this commitment, we are speeding up our operational sustainability initiatives and, in turn, enabling the growth of innovative solutions critical to achieving long-term climate targets and limiting global warming within the scope of the Paris Agreement," Sandahl continued.

BECCS is a new technology combining the production of bioenergy with carbon capture and storage, thereby preventing CO2 emitted when biomass energy is produced from being released into the atmosphere. Rather, it is safely stored in geological structures, thus proving to be a viable means of attaining negative emissions. This is an accepted method that is largely regarded as necessary for meeting net-zero emission targets by 2050, as set out in the Paris Agreement.

For Inherit Carbon Solutions, the partnership with Nordea is a breakthrough moment in the carbon removal industry. Inherit Co-CEO Kaja Voss was enthusiastic about the deal, stating that Nordea's involvement demonstrates a significant drive toward speeding up carbon removal efforts. "We are thrilled to be working with Nordea on this pioneering project and to see Nordea go to such great efforts to speed up the carbon removal industry.". We're doing it together, and collectively we're making a significant step towards a net-zero world, and we're excited about this partnership in the future," she said.

Nordea has already achieved considerable emissions reduction in its operations, with a 53% reduction since 2019. But Nordea also knows that to arrive at actual sustainability, it is not only necessary to reduce emissions but also to remove carbon from the air actively. By buying high-quality carbon removal credits, Nordea intends to become climate-positive by contributing positively to the environment rather than just reaching carbon neutrality. What this implies is that the amount of carbon removal credits it buys by 2030 will be more than its remaining emissions, making the company climate-positive.

Carbon removal technologies such as BECCS are central to the solution of climate change. In contrast to classical carbon offsetting, where the compensation of emissions is usually achieved through renewable energy investments or afforestation schemes, carbon removal actually removes CO2 from the air and guarantees its permanent storage. Such removal can be performed either naturally or technologically, with different levels of storage permanence. The Nordea-Inherit project uses geological storage, one of the safest and most enduring carbon removal options currently available.

This venture complements larger global actions to increase the scale of carbon removal. Scientists and policymakers converge in their view that, in order to meet net-zero emissions by 2050, carbon removal needs to be added to emission reductions. The technologies of BECCS, direct air capture, and ocean-based sequestration play important roles in tackling residual emissions from hard-to-decarbonize sectors such as aviation, heavy industry, and agriculture.

Nordea's investment in Inherit Carbon Solutions illustrates the active role that can be played by financial institutions in mobilizing climate action. Through such investments in new-generation carbon removal technologies, the bank is both fulfilling its internal sustainability objectives as well as enabling innovation in the industry. With increasing businesses and organizations looking to align themselves with the objectives of the Paris Agreement, projects such as this have the potential to be used as a blueprint to merge financial means with climate solutions.

The deal is a significant milestone for carbon removal in the Nordics, and one that will encourage other financial players and sectors to step up their game. With the pressure to combat the climate crisis intensifying, initiatives such as Nordea's will prove critical to making sure global warming stays in check. As the initiative continues to develop, success will set the stage for even more investments in bulk carbon removal, enabling a more sustainable world.