Climate investors are willing to sacrifice some level of profit in order to know that their dollars are benefiting future generations. As such, they might be interested in knowing that TPG Rise Climate Fund is funding Summit Carbon Solutions’ risky carbon capture scheme.

After decades of research and pilot projects, it’s evident that carbon capture and storage is not a viable method of mitigating the climate crisis. [1]

Carbon Capture and Storage (CCS) is a process in which carbon is captured from polluting entities, such as ethanol plants and cement factories, and then transported (typically by pipeline) to be sequestered underground.

Under the U.S. tax code known as section 45Q, polluters are rewarded for every ton of carbon dioxide stored or utilized. Historically, this has benefited oil and gas companies who are eligible for tax credits after pumping carbon into the ground in order to extract fossil fuels via "enhanced oil recovery". In recent years, the subsidies available have increased, leading to a massive growth in interest from oil companies like Exxon and Chevron, as well as new start ups like Summit Carbon Solutions and Carbon TerraVault. [2]

Unfortunately, the climate crisis doesn’t follow the rule of “out of site, out of mind.” Moving pollution from one location to another is not a real solution. Claims otherwise are simply greenwashing from those attempting to take advantage of vast government subsidies. Without government subsidies, the CCS industry would not be economically viable. [3]

Furthermore, the process of capturing, transporting, and storing carbon requires great amounts of energy, decreasing the already negligible net carbon reduction of the technology. Sequestering carbon also poses a variety of threats from groundwater contamination to increased seismic activity, while the transportation process poses a public safety risk to communities near the pipeline who could be exposed to lethal levels of CO2 in the event of a rupture.

If TPG Rise is truly dedicated to evidence-based solutions and technology that move us away from harmful industries that put profit before people and planet, it must divest from Summit Carbon Solutions.

In aligning with Summit, TPG is affirming that greed, not sustainability, not climate mitigation, and certainly not morals, is the driving force behind their investment decisions.

Are you a TPG Rise investor upset they are funding greenwashing? Email us at zach@drcinfo.com.

REFERENCES:

[1] "Don’t Fall for Big Oil’s Carbon Capture Deceptions," Scientific American, December 2023.

[2] "Carbon Capture Will Extend Oil Production by 84 Years, Industry Study Finds," DeSmog, June 2024.

[3] "Carbon Capture and Storage Is About Reputation, Not Economics," Institute for Energy Economics and Financial Analysis, July 2020.