JPMorgan Chase said Tuesday it will spend $200 million to remove and store a total of 800,000 metric tons of carbon dioxide from the atmosphere, or the equivalent of 896 billion pounds of coal burned.

Among other things, the company is signing big contracts with two high-profile startups: Climeworks, which operates the largest direct air capture site in the world; and Charm Industrial, which sequesters CO2 by turning biomass into an oil.

However, some critics have pushed back against scaling investments in carbon removal, saying it does not address the deep operational changes needed to reduce emissions. The United Nations Framework Convention on Climate Change, the UN agency charged with overseeing the Paris Agreement and COP28, released an information note last week that stated that engineering-based carbon removal is "technologically and uneconomically unproven" and "does not contribute to sustainable development" in a list of concerns it has about the activity. 

But that hasn’t stopped companies from charging ahead. Many companies have been encouraged by the 45Q tax credit changes from the Inflation Reduction Act, an amendment that increases payments for investments in carbon removal projects.

As part of the commitments announced Tuesday, JPMorgan Chase signed a $20 million, nine-year purchase agreement with Climeworks to capture and store 25,000 metric tons of carbon dioxide. This news follows Climeworks’ decision to open three new U.S.-based hubs of operation

"Agreements of this magnitude and beyond are what is immediately needed and expected from corporate buyers going from net-zero plans to net zero progress. They enable the capacity build-up that we all need to fight global warming at scale, in line with the latest climate science," said Jan Huckfeldt, Climework’s chief commercial officer, in a statement.

The U.S. bank also signed a five-year agreement with Charm Industrial to remove and store 28,500 metric tons of carbon us