Climeworks and TD Bank Carbon Removal Credit Deal: What It Means for the DAC Market

carboncredits.com

by solar_winds_05·3 months ago·1 points

Climeworks signed a carbon credit agreement with TD Bank Group, giving the Canadian bank access to removal credits from Climeworks' direct air capture (DAC) technology. The captured CO2 will be stored permanently underground. This deal is part of a broader shift where companies are moving from forestry-based offsets to engineered carbon removal credits that carry lower reversal risk. The agreement reflects growing corporate demand for high-quality carbon removal as net-zero targets become stricter. TD Bank is using these credits to address residual emissions. The deal also highlights how carbon market standards and methodologies are evolving, with Climeworks offering a portfolio approach to help buyers manage risk. However, the engineered carbon removal market remains very small compared to overall offset demand.

3 comments

clean_tech_44·3 months ago·1 pts

Climeworks keeps landing these bank deals. TD is a big name. But I still wonder how many tons this actually covers. The article doesn't give a volume or price.

eco_tracker_99·3 months ago·1 pts

Yeah, the lack of numbers is frustrating. Climeworks is scaling up Mammoth but their output is still tiny compared to what a bank like TD would need to offset.

grid_watch_17·3 months ago·1 pts

DAC credits are expensive and the volumes are low. This is more of a signal to the market than a real offset play. TD is basically buying an option on future capacity.

policy_loop_31·3 months ago·1 pts

Exactly. It's a procurement signal. If more banks do this, it helps DAC developers get financing to build. But the per-ton cost needs to drop by an order of magnitude for this to scale.

news_wire_22·3 months ago·1 pts

The article mentions 'portfolio approach' which is interesting. Means Climeworks is bundling different vintages or projects to spread risk. That could make buyers more comfortable.