Welcome to Thoughts on the Market. I'm Jessica Osford, global head of sustainability research

at Morgan Stanley.

And I'm Adam Virgidomo, US equity strategist. And on this special Earth Week episode, we're

going to be diving in to some key green investment themes for investors. It's Tuesday, April

20th, at 8 a.m. in New York, and 1 p.m. in London.

So Jess, Earth Day's coming up, which gives us a natural opportunity to talk about some

of the ways in which industry is finding an opportunity to go green. Decarbonization

technologies like renewables or like electric vehicles are probably well known. But perhaps

a lesser known area is something like carbon capture and storage. Our colleague, Devon

McDermott, he covers oil and gas for us here in the US recently wrote an interesting piece

on carbon management. Can you maybe walk us through what this potential solution looks

like?

Sure, absolutely. And CCS, as it's known, is a really interesting technology. So what

it essentially is doing is capturing carbon from different sources of emissions and then

sequestering that carbon permanently in underground stories such as depleted oil and gas reservoirs

or saline formations, for example. Now, we first wrote about it quite a few years ago.

And then there was a lot of skepticism from investors about whether CCS would really take

off or not. But we're really seeing that change. The first pushback that we always

got was that CCS doesn't actually prevent greenhouse gas emissions. And clearly, if we

think big picture, that is the end goal is to reduce greenhouse gas emissions, carbon

emissions to net zero by 2050. However, I think now there is just a much better appreciation

that CCS actually has to be part of the solution. If you think about sectors like chemicals

...