The UN recently confirmed the world is on track to blow past the 1.5C warming limit, making carbon removal a necessity rather than a goal. But the funding model for large-scale removal projects is still unclear. Bloomberg's newsletter examines the financing gap and the role of bond markets in pricing climate risk. With direct air capture and other removal technologies still expensive, the question of who foots the bill is unresolved. Policy incentives, carbon credit markets, and grid decarbonization all factor into whether removal projects can scale in time. The piece also highlights JPMorgan's climate chief on how weather risk is shifting bond market expectations. For anyone tracking climate finance or carbon markets, this is a useful look at the practical obstacles between climate pledges and actual deployment.
