Apple prefers to invest in businesses that restore forests and grasslands organically over fossil fuel producers’ artificial carbon capture and storage technology.
The world’s largest computer company recently unveiled the $200 million Restore investment fund, which would support businesses working to find sustainable methods of removing carbon from the environment. The additional funding comes on top of a $200 million fund that was formed the previous year.
The term “responsible” in this context is crucial. Apple is putting a lot of effort into restoring natural ecosystems like forests, grasslands, and wetlands where plants and trees use photosynthesis to take in carbon and release oxygen. By 2025, the first three Restore Fund projects, according to the business, would have eliminated 1 million metric tons of carbon dioxide annually.
Investor interest in carbon capture
However, man-made technologies created to directly suck carbon out of the air and store the gas in enormous underground storage tanks have garnered far more interest and funding.
Such technologies, according to critics, are untested. More significantly, major oil and gas producers like ExxonMobil Corporation (XOM) and Occidental Petroleum Corporation (OXY) are among of the largest supporters of the technology, which is something that environmentalists obviously don’t enjoy.
Vicky Hollub, CEO of Occidental, earlier remarked, “We shouldn’t be talking about eradicating fossil fuels. “Emissions reduction should be the topic of discussion.”
However, investors are pouring money into these firms. According to a Pitchbook analysis, venture capitalists invested $841.5 million into 11 deals in just the second quarter of last year. The amount is greater than any prior quarter and almost double the sum of the four prior quarters.
“Carbon capture technologies are experiencing high levels of global interest and investment, and the regulatory environment has created pressures and incentives that will support their continued growth in the future,” the research stated.
Microsoft is experimenting with a variety of ideas
Artificial carbon capture and storage technologies are popular among investors because businesses can simply integrate such systems into already-existing infrastructure like power plants and industrial facilities like oil fields.
According to the Pitchbook research, “this integration makes it a very attractive investment for those looking to extend the life of their carbon-intensive assets during the pivot to a low-carbon paradigm, effectively allowing decarbonization without the immediate upfront costs of building new facilities.”
For instance, in the Permian basin, a region in West Texas and New Mexico that already produces a significant portion of the United States’ oil supply, Occidental is now constructing what will be the largest carbon capture and storage plant in the world. By 2024, the business intends to have finished building the facility, which will be able to capture and store 1 million metric tons of carbon dioxide.
Software giant Microsoft Corporation (MSFT) – Free Report The competitor of Apple has chosen the “try them all” strategy. The multinational software company has engaged in “blue carbon” projects, which involve the natural carbon sequestration and storage capabilities of coastal ecosystems like mangrove forests, tidal marshes, and seagrass meadows. CarbonCapture, a business constructing a sizable carbon capture facility in Wyoming, is also supported by Microsoft.
