The deal is the financial institution’s first foray into direct air capture credit purchasing and expands Climeworks’ U.S. footprint.

The bank is the latest major financial institution to invest in novel tech like carbon removal to fight climate change.

The agreement will accelerate the Swiss-based direct-air capture company’s plans to scale up in the U.S.

Morgan Stanley (NYSE:MS) has partnered with Climeworks, the operator of the world's largest direct air capture project, to finance carbon removal efforts, according to a statement on Thursday. The agreement,

Morgan Stanley has entered into a deal with Climeworks AG to finance the removal of CO2 from the atmosphere, joining other Wall Street heavyweights including JPMorgan Chase & Co. in throwing its weight behind the nascent technology.

Morgan Stanley has announced a partnership with Climeworks to remove carbon dioxide (CO2) from the atmosphere through direct air capture (DAC) technology. Swiss-based leader in DAC technology company Climeworks will help Morgan Stanley offset a portion of its unavoidable emissions through carbon removal.

Morgan Stanley is investing in direct air capture of carbon dioxide through a partnership with the Swiss firm Climeworks, the companies announced this morning.Why it matters: The deal demonstrates growing interest on Wall Street to tap into the fledgling carbon removal industry by buying carbon removal credits.