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Anthropic becomes first AI startup in Frontier carbon removal coalition

▼ Summary

– Anthropic is the first AI startup to join the carbon removal collective Frontier, contributing to a new $915 million funding tranche that brings total pledges to $1.8 billion.
– Frontier has contracted nearly $700 million across over 50 projects to remove 1.8 million tons of carbon, with companies using credits to reduce their carbon footprints.
– Anthropic’s membership marks its first climate-related deal; the company has not yet produced a sustainability report and previously favored an “all of the above” energy approach.
– Frontier was founded by tech companies like Stripe, Google, and Shopify to vet and contract with carbon removal firms, addressing the gap between corporate climate pledges and nascent removal technology.
– Frontier will now fund fewer, larger projects with higher scrutiny, requiring carbon removal companies to show a path to government support, and will contract as far out as 2040.

Anthropic has become the first pure AI startup to join Frontier, the high-profile carbon removal collective, as the group announces a new $915 million funding tranche that brings its total pledged capital to $1.8 billion. The move marks Anthropic’s first climate-related deal and signals a potential shift in how AI companies approach their environmental responsibilities.

The new funding nearly doubles Frontier’s previous commitments, which have already contracted roughly $700 million across more than 50 projects to remove 1.8 million tons of carbon. Companies that pledge money to Frontier typically use the resulting carbon removal credits to offset their publicly reported emissions. While Google is a founding member, Anthropic stands out as the first company focused entirely on artificial intelligence to join the ranks. Its membership arrives at a time when AI firms have been on an aggressive energy buying spree, not all of it sourced cleanly.

Anthropic has yet to publish a sustainability report and has previously endorsed an “all of the above” energy strategy, a phrase that often translates into large purchases of polluting power. Joining Frontier could signal a change in direction, however, as the company makes its first tangible climate commitment.

Frontier was launched by tech giants including Stripe, Google, and Shopify to help them meet their climate pledges. These companies face a fundamental dilemma: They want to reach zero emissions within a decade or two, but some emissions,like those from air travel,are currently unavoidable. Meanwhile, the carbon removal industry remains nascent, lacking large-scale players capable of absorbing the volumes companies need. Frontier vets carbon removal firms and signs contracts with those it believes can deliver.

Carbon removal credits allow companies to continue emitting some pollution while subtracting those credits from their carbon footprint, much like profits offset debts on a balance sheet. Frontier acts as a shared resource, screening projects for its member companies.

In announcing the new pledges, Frontier said future funding will come with stricter scrutiny. The organization plans to fund fewer projects, focusing on those with the best chance of removing a gigaton,one billion metric tons,of CO₂ or more annually. New contracts will typically run eight to ten years.

Since its launch in 2022, Frontier has backed a range of technologies, including direct air capture, enhanced rock weathering, bio-oil, ocean antacids, and bioenergy with carbon removal and sequestration. This shift from many small bets to fewer larger ones mirrors what is happening at Microsoft, the largest buyer of carbon removal credits to date.

Despite wanting the market to grow and mature, Frontier’s members are making clear they do not intend to underwrite it forever. For any new contract, the carbon removal company must “show a path to government subsidy or support,” a Frontier spokesperson told TechCrunch.

The UN Intergovernmental Panel on Climate Change has stated that carbon dioxide removal technology will be necessary for the world to reach net zero emissions, though few companies or consumers are eager to pay for it. Like clean water, the burden will almost certainly fall on governments eventually. Frontier said it will contract as far out as 2040. It did not say what happens after that, but the implication is clear: they hope governments will have taken the reins by then. If they don’t, at the rate the climate is warming, we will have far bigger problems to worry about.

(Source: TechCrunch)