To meet the IPPC’s 1.5C scenario, the emerging consensus is that carbon capture and storage (CCS) needs to increase from around 40 million tonnes of CO2 in 2020 to 1 billion tonnes in 2030, then 10 billion tonnes in 2050.
The market for carbon removal needs to grow 25 times by 2030 and XTX will support this goal by purchasing CCS credits that help to accelerate the market and bring down the cost curve. XTX is focusing on projects that have scientifically valid methods to capture atmospheric CO2 and store it durably for thousands of years.
XTX has purchased its first tranche of carbon removal credits for its 2020 emissions, equivalent to 3,265 tonnes of CO2. It plans to purchase further tranches each year.
XTX will be one of the first trading firms to remove its CO2 emissions and, as far as it knows, the first major firm in any sector to remove household carbon emissions on behalf of employees.
XTX MARKETS CLIMATE PLEDGES:
We recognise that net zero requires both the reduction and the removal of CO2 emissions. To this end, XTX is making four pledges:
1) We pledge to avoid energy use from fossil fuels:
Our research cluster uses geothermal energy (totalling 3.8 megawatts of renewable power) and our UK office has switched to renewable energy. We will keep working to incrementally improve on this.
2) We pledge to remove all the firm’s CO2 emissions:
We pledge to remove the CO2 emitted as a result of the firm’s own assets, purchased energy use and indirect emissions (Scope 1, 2, and 3 emissions respectively).
3) We pledge to remove 16t of CO2 per employee:
We pledge to remove individual XTX employees carbon emissions at the level of 16 tonnes of CO2 per employee – which is more than the average UK household emitted in 2020.
4) We pledge to offer support to employees who want to reduce their carbon footprint:
As well as removing CO2 on behalf of employees, we will offer further support where we can. This includes initiatives like electric vehicle lease schemes and advice on buying personal carbon credits.
Alex Gerko, Founder & co-CEO at XTX Markets, commented:
”We are pleased to announce our climate pledges, including our unique approach to employee carbon removal. XTX is again leading the way within the algo trading community and we look forward to others joining us in implementing processes to help alleviate climate issues.”