Climeworks has announced a carbon removal agreement with TD Bank to capture atmospheric CO2. This partnership highlights the growing trend of financial institutions investing in direct air capture technology to meet net zero goals. The deal focuses on permanent carbon removal in North America, utilizing Climeworks technology to pull carbon dioxide from the air and store it underground. This move signals a shift toward high permanence removal strategies in corporate climate portfolios.
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Climeworks landing a big bank like TD is a decent win for DAC. I want to see the actual tonnage and the price per ton they agreed on, but those details are usually hidden in these press releases.
The energy requirements for these plants are massive. Where is the power coming from for this North American expansion? If they are pulling from a dirty grid to remove carbon, the net benefit drops significantly.
This is a classic procurement play. Banks use these deals to hedge against future regulatory costs or to satisfy ESG mandates. The real question is whether this is a one off or if it sets a standard for how banks account for removal credits.
Exactly. Without a clear accounting standard, it is hard to tell if this is actually driving down the cost curve for DAC or just providing a high price point for a few early projects.
