Canadian carbon removal developer Deep Sky has signed a ten year agreement with TD Bank Group. Under the deal, TD will purchase more than 18,000 verified direct air capture (DAC) carbon removal credits over the next decade. The credits come from Deep Sky's Canadian DAC facilities and will be verified by an independent third party registry. Financial terms were not disclosed. The agreement gives TD a way to address residual emissions that remain after its operational reductions. The bank has cut Scope 1 and 2 emissions by 29% from a 2019 baseline. It sees engineered carbon removal as a complement to efficiency and renewables, not a replacement. For Deep Sky, the long term purchase commitment provides revenue certainty to help scale its infrastructure. This deal follows a similar 10 year CDR portfolio deal between Climeworks and TD, and a separate Deep Sky partnership with ENGIE. The trend shows major banks moving beyond voluntary offsets into long term procurement of permanent carbon removal. The durability and verification of DAC credits will be critical as this market grows.
