PitchBook-新兴的可持续投资机会：碳利用（英）-2023

Emerging

SustainableInvesting

Opportunities:Carbon

UtilizationPitchBookData,Inc.John

Gabbert

Founder,

CEONizar

Tarhuni

Vice

President,

InstitutionalResearch

and

EditorialDaniel

Cook,

CFA

Head

of

Quantitative

ResearchHowcarbonutilizationcancreateadoublebottomlineoffinancialreturnsandpositivesocialandenvironmentalImpactInstitutionalResearchGroupAnalysisAnikka

VillegasAnalyst,

Fund

Strategies

&Sustainable

Investinganikka.villegas@PitchBook

is

a

Morningstar

company

providing

the

most

comprehensive,

mostaccurate,

and

hard-to-find

data

for

professionals

doing

business

in

the

private

markets.Insights

developed

in

collaboration

withJohn

MacDonagh,Senior

Analyst,

EmergingTechnology

at

PitchBook

Data.Key

takeawaysDataAlyssa

WilliamsSenior

Data

Analyst•As

usage

ofcarbon

capturetechnologiescontinuestorise,

thequestionofwhattodo

withcapturedcarbon

hasgrownmoreurgent,

and

carbon

utilizationispartoftheanswer.pbinstitutionalresearch@•The

financialreturnpotentialofthisopportunity

isdictatedinlargepartbycarbon

capture’sproliferation,governmentfundingand

regulatorysupport,

challengesfaced

byits

mainalternative,and

corporatesustainabilitycommitments.PublishingDesigned

by

Caroline

SuttiePublished

on

December

11,

2023•Carbon

utilizationhasthepotentialtocreatepositiveenvironmentalImpactsbyenablingamoresustainablelifecycleforcapturedcarbon,

providinglower-carbon

substitutesfortraditionalproducts,

and

reducingrelianceon

analternativethatpresents

environmentalrisks

inadditiontosocialones,

creatingaminorsocialImpact

potentialas

well.ContentsKeytakeaways1Introduction237Financial

return

potentialEnvironmental

and

social

Impactpotential1Emerging

Sustainable

Investing

Opportunities:

Carbon

UtilizationIntroductionVenturecapital,often

serving

as

theincubatorofemerging

technologies,iswellpositionedtoinvestwithpositivesocialand

environmentalImpact

goalsinmind.VCscan

drawon

theirexpertise

and

resourcestofosterthebusinesses

thathavethegreatestpotentialforbothImpact

and

returns,especiallywhen

keepinganeyetowardcompaniesforwhichsuccessnecessarilymarriesthetwo.Thisfact

hasnotgoneunnoticedbyVCs,whichrepresent42.7%ofthetotalcountofImpact

fundsraisedsince2007.

Yet,

thelandscape

ofprospectiveopportunities

isexpansiveand1rapidlyevolving,makingitdifficult

tokeeptrackofwhichones

havethegreatestfinancial—andImpact—returnpotential.Emergingopportunities

often

gobeyondtheinvestmentareastraditionallyassociatedwithsustainability,suchas

solarenergy

or

electric

vehicles,encompassingahost

oflesser-knowntechnologies.Evenwithinthefamiliarthemes,therearenicheinvestmentopportunities

developing.Inthisanalystnoteseries,

wesurface

opportunities

acrossemerging

technology

verticalssuchas

agtech,

mobilitytech,and

carbon

&emissionstechthatwebelievearepoised

toperform

wellwithinthenext

decade,

frombothfinancial-returnand

Impact-returnperspectives.

Indoingso,wehope

tohelpguideVCspursuingthe“doublebottomline”

throughthecomplexlandscape

tothemost

fruitful

opportunities.Foreach

analystnoteintheseries,

insightsaredevelopedincollaborationwithaPitchBookEmergingTechnologyAnalystcoveringtherelevantvertical,

usingtheirsubject

matterexpertise

and

previousresearch,as

wellas

some

externalresources,toinformour

perspective

on

thespace.

We

discusstheopportunity’s

majordriversofreturnpotentialas

wellas

theinvestmentrisks

and

obstacles

itfaces.

We

alsoexploreits

socialand

environmentalImpact

potential,howtheopportunity

fitsintovariousIRIS+Impact

themes,

and

potentialmetricstohelpquantifythose2Impacts.

Ultimately,theaimofthisresearchistogiveVCsand

theirLPs

abetterunderstanding

ofhowtheopportunities

aligntotheirreturnand

sustainabilitygoalsand

providecompaniesoperatinginthese

spacesasense

ofhowtooptimizeandcommunicatetheirsocialand

environmentalImpact.Thisanalystnotefocuseson

carbon

utilization,whichencompasses

awiderangeofdevelopingapproaches

tomakinguse

ofcapturedcarbon

dioxide(CO

)and

isthe2mainalternativetocarbon

sequestration.Historically,CO

waslargelyused

inurea2production

and

enhanced

oilrecovery,thelatterofwhichinvolvedpumpingCO

into2oilfields

toincreasetheextraction

ofoiland

extend

thelifetimeoftheoilfields.3However,theend

products

ofup-and-comingcarbon-utilizationcompaniesfit

intothreemajorcategories:industrialchemicals,

fuels,

and

constructionmaterials.Withdecarbonizationnowamajorinvestmenttheme

inbothPEand

VC,carbon

capturecapacity

isgrowing,and

thequestionofwhattodo

withcarbon

onceithasbeentrapped

ismorepressing.Since2013,46

VC-backedcompanieshaveenteredthecarbon-utilizationspacewith$1.1billionininvestment.1:For

more

Impact

fundraising

data,

read

our

Q4

2022

PitchBook

Analyst

Note:

Impact

Investing

Update.2:

The

Impact

Reporting

and

Investing

Standards

(IRIS+)framework,

created

bythe

Global

Impact

Investing

Network

(GIIN),isan

industry-leadingmethodology

aiding

investors

in

sorting

Impact

investments

bythe

different

types

ofImpact

they

are

targeting.

Youcan

learn

more

about

the

IRIS+categories,

what

they

include,

and

what

they

do

not

in

“IRIS+

Thematic

Taxonomy,”Global

Impact

Investing

Network,

April

2023.3:

For

more

detail

on

carbon

utilization

approaches,

read

our

Q1

2023

PitchBook

Analyst

Note:

Carbon

Dioxide

as

aSource

ofValue.2Emerging

Sustainable

Investing

Opportunities:

Carbon

UtilizationCarbonutilizationVC

dealactivity2521191412105433220132014201520162017201820192020202120222023*Deal

value($M)Deal

countSource:

PitchBook

•Geography:

Global*AsofNovember

22,

2023FinancialreturnpotentialAtmosphericcarbon

dioxideistheprimary

contributortoanthropogenicglobalwarming,

whichhasfar-reachingeffects

on

thewelfareand

continuityofthe4environmentand

society.Inordertohalt,letalonereverse,climatechange,itwillbe

necessary

topreventcontinuedemissionsofcarbon

intotheatmosphereinadditiontoremovingaportion

ofwhathasalreadybeen

released.5,

6

Carbon

capturetechnologiesareanimperfect

solutiontothese

monumental

problems.

Althoughtheyhaveawaystogotoreachtheefficiency

levelsnecessary

tojustify

widespreadimplementation,therehasbeen

significantinvestmentintheirdevelopmentanduse,

withbroadsupport

fromthefossilfuels

industry,whichstands

tobenefitenormously

fromproofoftheirfeasibility.As

usage

increases,

theneed

foraplacetoput

capturedcarbon

willas

well,and

carbon

utilizationcan

helpmeet

thisneed,reapingtherewardsofheightenedand

growingdemand.Despiteoften

beinggrouped

as

one,

carbon

capture,utilization,and

storage(CCUS)

involvedifferent

technologiesand

businessmodels.

Carbon

captureisthetechnology

thattrapsCO

,eitherthroughpoint-sourcecaptureatthelocationof2emissions,suchas

anindustrialfacility,or

direct

aircapturefromtheatmosphere.7Once

carbon

iscaptured,thecapturermust

find

somethingtodo

withit,

and

therearetwooptions:carbon

storageor

carbon

utilization.The

capturercan

eitherdothese

itself

or—morefrequently—outsourcetoanothercompany.Carbon

storageinvolvesthetransportation

ofcarbon

tositeswhereitisinjectedintoundergroundrockformationsforpermanent

storage.As

these

sitesrequireacertain

geologyand

economicviability,whichmaynotexistator

near

thelocationofcapture,transportation

costs

can

be

substantial.The

mainsourceofrevenueforcarbon-storage-focusedcompaniesisthepaymenttheyreceivefromcarbon

capturerstotaketheircapturedcarbon,

althoughgovernmentincentivessuchas

taxcreditspermetrictonstoredcan

alsoplayaroleinthebusinessmodel.4:

“Overview

ofGreenhouse

Gases,”

USEnvironmental

Protection

Agency,

October

10,

2023.5:

“Climate

Change

2022:

Mitigation

ofClimate

Change,”

IPCC,

2022,

accessed

November

29,2023.6:

“CO2Removal

Is

Essential,

Along

With

Emissions

Cuts,

toLimit

Global

Warming—Report,”

University

ofOxford,

January

19,2023.7:“What

Is

Carbon

Capture

and

Storage

and

How

Does

It

Work?”

Global

CCS

Institute,

accessed

November

29,2023.3Emerging

Sustainable

Investing

Opportunities:

Carbon

UtilizationCarbon

utilization,whichinvolvescreatingand

sellingproducts

usingcapturedcarbon,

often

requiresless

carbon

transportation,

as

utilizerscan

localizetheiroperationsclosetothesourceofthecapturedcarbon.

The

mainrevenuesourceforcarbon

utilizersisthesale

oftheirend

products,

but

as

withcarbon

storage,governmentincentivesmayalsobe

acomponent.

Whilechargingcarbon

capturersforcarbon

offtake

maynotbe

theprimary

revenuesourceformanycarbon-utilizationbusinesses

today,thisdoes

notmean

thatitwillnotbecome

amorecommon

practiceinthefuture.Itisalsoworth

notingthatcarbon

utilizersmustcompetewithotherproducers

ofthesame

or

similarend

products

as

theirs.

Forexample,intheconstructionmaterialscategory,acement-producingcarbon-utilizationcompanymust

competewithothercement

producers,

carbon-utilizingor

not.Similarly,afuel-producingcarbon-utilizationcompanywillhavetocompetewithotherfuel

producers.

As

such,

carbon-utilizationcompanieswithend

productsindifferent

categoriesexperiencevarying,

market-specificreturndrivers.Thecompanieswiththestrongestreturnpotentialarethosethatcan

competeon

priceand

qualityinadditiontobenefitingfromtheothertailwindsdiscussedinthisreportand

positivemarketdynamics.There

arefourcentralfactors

influencingthereturnpotentialofthecarbon-utilizationspaceas

awhole:carbon

capture’sproliferation,governmentfundingand

regulatorysupport,

challengesfaced

byits

mainalternative,and

corporatesustainabilitycommitments.

On

thefirst

point,carbon

captureison

therise.

Atpresent,

carbon

captureand

removal-relatedtechisresponsiblefor0.1%oftheWith

more

capturedcarbon,demandfor

carbonutilization

andstoragewill

increase,

andcarbon-utilization

companiesmaybeableto

earnmore

throughgovernment

incentives

orby

charging

to

take

it

offthecapturer’s

hands,positivelyimpactingthe

bottom

line.roughly2billiontonsofCO

removedfromtheatmosphereeach

year.

However,82limitingglobaltemperatureincreasesto1.5

to2.0degrees

Celsiuswilllikelyrequiremoresubstantialimplementationofthese

technologies.Usage

isanticipatedtogrowdramaticallyinthecomingyears,

potentiallysixfoldby2030.

Withmore9capturedcarbon,

demand

forcarbon

utilizationand

storagewillincrease,

andcarbon-utilizationcompaniesmaybe

abletoearn

morethroughgovernmentincentivesor

bychargingtotakeitoff

thecapturer’shands,

positivelyimpactingthebottomline.

Of

course,

thecostofotherinputs

inproduction

willalsoinfluenceprofitability,but

as

carbon-utilizationtechnologiesgrowmoresophisticatedandefficient,

morecarbon

willlikelybe

abletobe

utilizedrelativetothecosts

oftheseotherinputs,

atleast

forsome

types

ofcarbon

utilization.Second,

governmentfundingand

regulatorysupport

forCCUShasbeen

robustandexpanding.Thisfundingprovidesanedgeforcarbon

utilizersincompetitionwithproducers

ofthesame

type

ofproduct

withoutthecarbon-utilizationcomponent,as

itcan

allowutilizerstochargeless

fortheirproduct

or

reinvestinoperationalimprovements.IntheUS,

theInfrastructureInvestmentand

Jobs

Act

allocated$12.0billiontoCCUStechnology,10

and

theInflationReduction

Act

providedforadditionaltaxcreditsforcarbon

storageand

utilization,extendingthedeadlineforqualificationforthecreditsand

looseningthecapacity

requirementsforeligibleprojects.11

The

UK

alsorecentlyannounced

£20

billioninfundingforaCCUSprogram,

and

Chinahasaround80

CCUS-relatedplans,

standards,roadmaps,and8:

“Guest

Post:

The

Stateof‘Carbon

Dioxide

Removal’

in

Seven

Charts,”

CarbonBrief,

January

19,2023.9:

“Global

Carbon

Capture

Capacity

Due

toRise

Sixfold

by2030,”

BloombergNEF,

October

18,

2022.10:

“Infrastructure

and

Jobs

Act:

Carbon

Capture,

Utilization

and

Storage

Investment,”

IEA,

May

25,

2023.11:“Inflation

Reduction

Act

2022:

Sec.

13104

Extension

and

Modification

ofCredit

for

Carbon

Oxide

Sequestration,”

IEA,

November17,2022.4Emerging

Sustainable

Investing

Opportunities:

Carbon

Utilizationotherpolicies,aportion

ofwhichhaveinvestmentand

financingprovisions.12,

13Other

geographies,

suchas

theEU,arealsotakingstepstoacceleratepermittingand

define

goalsaroundCCUS.14The

thirdkeyfactor

incarbon

utilization’sreturnpotentialisthatcarbon

storagefaces

serious

challengesthatcreateopportunities

foralternatives.Carbontransport

and

storageiscapital-intensive,necessitatingcomplexinfrastructureandongoingmeasuring,

monitoring,and

management,

and

further

requireshuman-capitalexpertise

thatisfairlylimitedtoday.15

Shouldthese

aspects

changedue

totechnologicaldevelopments,

labor

marketshifts,

or

supplemental

governmentsupport,

theneed

forcarbon

utilizationmaydecrease.

However,itisprobablethatbothcarbon

storageand

carbon

utilizationwillbe

needed

toaccommodatethelargeamounts

ofcarbon

projectedtobe

capturedinthecomingyears.

Regardless,carbon

storagewillnotbe

viableforallgeographiesand

locations,

and

thelandinwhichitcan

be

storedisalimitedresource.Rockmust

havesufficient

porous

spaceforliquefiedcarbon

tobe

injected,but

toomanyvoids,suchas

cavernsor

holes,increasethelikelihoodofaleak.

The

further

thecarbon

must

be

transported

tobestored,themoreexpensiveitis,

and

as

thenumber

ofsuitablesitesbecomes

morelimited,itwillhavetobe

movedgreaterdistances,

increasingcosts.

Althoughtheglobalpotentialcapacity

forstoragefarexceedswhatisnecessary

toachievenetzero,16

accessibilityand

commercialviabilitywillcreateconstraints.Corporate

commitmentsto

sustainability

andthetransition

to

net

zero

helppromote

demandfor

theendproductsof

carbon-utilization

companiesandmay

allow

themto

charge

a“green

premium.”Lastly,corporatecommitmentstosustainabilityand

thetransitiontonetzerohelppromotedemand

fortheend

products

ofcarbon-utilizationcompaniesandmayallowthemtochargea“greenpremium.”Makingtheshift

toutilizingmoresustainableproducts

isaconcretestepthatcompaniescan

taketoreducenegativeenvironmentalimpact,

aidingtheminavoidinggreenwashingclaims.Forexample,capturedcarbon

can

be

usedto

createaviationfuel,providingalower-carbonenergy

solutioninasector

thatisnotoriouslydifficult

todecarbonize.Airlinesutilizingthisfuel

can

brand

aroundthesustainabilityoftheiroperations,

whichmayimprovetheirstandingamong

potentialpassengers,

as

consumers

increasinglycareabout

theclimateimpact

ofthecompaniesfromwhichtheymaketheirpurchases.

The

abilitytochargeagreen

premiumwillbe

presentonlyforsomeproducts

used

insome

industries,though,

so

itwillnotbenefit

alltypes

ofcarbonutilizationuniformly.Fromariskviewpoint,carbon

utilizationhasafewvulnerabilities.First,

itissubjecttopoliticaland

regulatoryrisks,

whichtakeseveralforms.

Lossofgovernmentfundingor

harshregulationofcarbon

capturecouldconstrainthesupplyofcarbonfeedstocks,

eliminatingamajortailwindforthespace.

Additionally,materiallydisproportionategovernmentsupport

forcarbon

storageovercarbon

utilization,thusimprovingthecostofcarbon

storagecomparedtoits

alternative,wouldlikelydrivedowndemand

forcarbon

utilization.Similarly,lossoffundingand

regulatorysupport

forcarbon

utilizationwouldhaveanegativeimpact

on

returnsinthespace,12:

“Government

Provides

aSpringboard

toUK

CCUSIndustry

With

£20

Billion

for

Early

Deployment,”

CCSA,

March

15,

2023.13:“Global

Carbon

Capture

and

Storage

Regulations:

ADriver

or

Barrier

toCCS

Project

Development?”

Norton

Rose

Fulbright,

Alistair

Black,

et

al.,September

2023.14:“Net

Zero

Industry

Act:

CCUS,”

IEA,

June

12,

2023.15:“Scaling

the

CCUSIndustry

toAchieveNet-ZeroEmissions,”

McKinsey

&Company,

Krysta

Biniek,

et

al.,

October

28,

2022.16:

“The

World

Has

VastCapacity

toStoreCO2:Net

Zero

Means

We’llNeed

It,”

IEA,

Raimund

Malischek

and

Samantha

McCulloch,

April

1,

2021.5Emerging

Sustainable

Investing

Opportunities:

Carbon

UtilizationGiven

it

possessestheapproval

of

the

fossilfuelindustry,

CCUSgiventheaforementionedadvantagesitconfers.

These

outcomesareunlikely,though.

Givenitpossesses

theapprovalofthefossilfuel

industry,CCUShasmorebuy-infromconservativesthanmost

othersustainability-relatedinvestments,andvery

fewgovernmentsaretakingan“either-or”approachwhen

itcomes

tocarbonutilizationversuscarbon

storage.Italsobears

reiteratingthatcarbon-utilizationcompaniesproducingdifferent

end

products

aresubject

tosome

distinctrisks,includingregulatoryones.

Forexample,whilesome

constructionmaterialssuchas

concretearethoughttobenefit

fromtheinjectionofcarbon

duringthemixingprocess,

creatingatheoreticallystrongerproduct,

these

types

ofmaterialsaresubject

togreaterregulatoryscrutiny,particularlyifload

bearing.Thiscan

meanyearsofwaitingforapprovaland

permitting,

animportant

considerationforinvestorswithless

patientcapital.has

more

buy-in

fromconservatives

than

mostother

sustainability-relatedinvestments,andveryfewgovernments

are

takingan“either-or”

approach

whenitcomesto

carbonutilizationversus

carbonstorage.The

second

majorriskiscompetition.Inadditiontothechallengeofgoinghead-to-headagainstincumbents,

ifcarbon-utilizationbusinesses

proveprofitable,morewillenterthemarket,creatingmoreintensecompetitionon

twofronts.

First,shouldcarbon

utilizersbe

abletochargeforcarbon

offtake,

moreentrantswilllikelyresultinincreaseddemand

forcapturedcarbon,

decreasingtheamount

theycancharge.

Itcouldalsoeventuallyresultinscarcityofcapturedcarbon,

whichisacoreand

criticalinputforcarbon-utilizationcompanies,thushamperingproduction.Nevertheless,

thisisunlikelytomanifestinthenear

futuredue

tothesmallamountofcarbon

used

bymost

end

products,

whichissomethingthatproducers

areactivelyattemptingtoscale.

Second,

marketentrantswillincreasethesupplyofproducts

createdwithcarbon,

alsoforcingdownthepricesatwhichtheycanbe

sold.

To

theextentthatsustainability-relatedbrandingofcarbon-utilizationcompaniesoffers

anupper

handagainstnon-carbon-utilizingcompetitors,thiswillalsobe

dilutedwithmorecompetitorsbrandingaroundthesame.Third,carbon-utilizationcompaniesaresubject

tomacroeconomicand

marketforcesinfluencingdemand

fortheirend

products.

Regardlessofwhethercement-producingcarbon-utilizingcompaniescan

competewithincumbentsor

newentrants,

ifthereisarecessionresultinginthewidespreadcessationofconstruction,

thosecompaniesmaynotbe

abletogeneraterobustreturns.Thesame

goes

forbusinesses

inthecarbon-utilizingindustrialchemicalsand

fuelsspaces,

and

anyothercarbon-utilizationtechnologiesthatemerge.

Idiosyncraticand

macroeconomicdemand-siderisks

willevolveand

fluctuateovertimeand

canbe

identifiedand

evaluatedthroughresearch.Whilesome

ofthese

risks

can

bemanaged,otherscannot,

so

as

withanyotherinvestment,assetmanagersmustmakeajudgment

callregardingwhetherrisk-adjustedreturnpotentialisattractive,bearinginmindthecurrentmacroeconomicenvironmentand

marketconditions.The

finalriskrelatestoone

oftheotherkeyinputs

inproduction

formanycarbon-utilizationcompanies,whichisenergy.CO

isalow-energy

molecule,

so

producers2offuels

and,

toalesser

extent,

certain

chemicals,

mayrequiresubstantialenergyconsumption

toconvertittoahigh-energy

moleculesuitabletothoseend

uses.

Incontrast,constructionmaterialsrequirelittletonone,

withCO

typicallyconverted2intolow-energy

carbonates.

Forcompaniesthatuse

largequantitiesofenergy,fluctuationsinenergy

pricescan

greatlyimpact

profitability,particularlyifmargins6Emerging

Sustainable

Investing

Opportunities:

Carbon

Utilizationarealreadythin.Furthermore,

asignificantcomponent

ofcarbon

utilization’sgreencredentialsisdependent

on

theenergy

used

inproduction

beinglowcarbon,

whichwillaffect

carbon

utilizers’abilitytoscale

ifcosts

arehighand

thesupplyislimited.Recenteventssuchas

theEuropeanenergy

crisis,whichhadaglobalrippleeffecton

energy

prices,

demonstratethemagnitudeoftheimpact

these

risks

can

haveoncertain

industries.17

Withtechnologicaldevelopmentfocused

on

makingconversionofcarbon

intoahigh-energy

moleculemoreefficient,

thisriskmaycometohaveless

weightas

timegoes

on.

Nonetheless,

when

examiningreturnpotential,thecostofthese

otherinputs

inproduction

must

alsobe

considered.EnvironmentalandsocialImpactpotentialRelevantIRIS+categories18ClimateEnergyLandRealestateCarbon

utilizationcurrentlyhasamoderateenvironmentalImpact

potentialthatisanticipatedtoscale

withinthenext

10

yearsas

technologicaldevelopmentand

adoptionincrease.

There

arethreemajorchannelsthroughwhichthespacecan

generatethese

Impacts,

withthesecond

beingamoreminoropportunitythantheothertwo.The

first

majoravenueisbyenablingamoresustainablelifecycleforcapturedcarbon.

Whileopinionson

theefficacy

and

investment-worthiness

ofcarbon

capturevary,itisbeingimplementedon

aglobalscale,

and

itspopularizationwillcomewithits

ownramifications.Iftheonlyoptionformanagingcapturedcarbon

ispumpingitback

intoafinitenumber

ofsuitable,accessible,andcommerciallyviablesites,carbon

capturewillnotbe

along-termsolutiontotheproblemofanthropogenicclimatechange.

By

offeringotherpathwaysforcapturedcarbon,

carbon

utilizationcan

decrease

pressureon

carbon

storageand

helpextendtheavailabilityofsitesintothefuture.Relatedly,carbon

storagedoes

presentsome

environmentalrisks

and

costs

thatcarbon

utilizationdoes

not.Forone,

carbon

storageoften

involvesmoreextensivetransportation

thancarbon

utilization,usinglandand

watervehiclesor

pipelines.

Ifthevehiclesarenotelectric

or

usingcarbon-neutral

technologies,theycontributetoCO

emissions,attenuatingthecarbon-reducingeffects

oftheentireprocess.2Buildingpipelinescan

disruptecosystems,contributingtobiodiversityloss,

andtheleak

or

ruptureofpipelinescan

contaminateaquifers.19

The

same

goes

forcarbon

storedunderground,

whichcan

additionallystimulateseismicactivity.Someofthese

environmentaldamagescan

be

prevented,but

withless

transportationinvolvedincarbon

utilization,itisthelower-riskoption.These

trade-offs

are17:“‘Crippling’

Energy

BillsForce

Europe’sFactories

toGo

Dark,”

The

New

YorkTimes,

LizAlderman,

September

19,2022.18:

“IRIS+

Thematic

Taxonomy,”Global

Impact

Investing

Network,

April

2023.19:

“Carbon

Capture

and

Storage,”

CIEL,

2022,

accessed

November

29,2023.7Emerging

Sustainable

Investing

Opportunities:

Carbon

Utilizationdifficult

toquantifybut

arerelevantregardless.Beyondtherisks

alreadydiscussedinthereturnpotentialsection,

whichaffect

theviabilityof