The summer of 2021 has shown a vast variety of extreme weather events around the world and thereby given an outlook on the consequences of the climate crisis. To limit global warming to safe levels, we need to do everything we can. The latest report by the UN’s Intergovernmental Panel on Climate Change confirms that it is crucial to reduce our emissions drastically and, on top of that, remove unavoidable and historic carbon emissions from the air permanently. Climeworks’ carbon dioxide removal via direct air capture technology is the only solution that can reduce atmospheric concentration of CO2 in a scalable manner, by capturing CO2 from the air today and storing it permanently underground.
Swiss Re’s pioneering commitment
Swiss Re committed in 2019 to reach net-zero operational emissions by 2030 by reducing their carbon footprint and removing any residual emissions. The company is committing to a unique long-term partnership with Climeworks.
Swiss Re and Climeworks are launching a cutting-edge collaboration by signing the worlds’ first 10-year carbon removal purchase agreement. This first of its kind agreement is worth $10m.
Both the length and the total value of the partnership are, so far, unrivalled in the voluntary carbon market for this type of innovative high-quality carbon removal. The partnership with Swiss Re is of integral importance to Climeworks: the re/insurance industry is at the forefront of assessing complex risk structures including those of climate change. Re/insurers are capable of structuring those risks and allocating them in an efficient way. Swiss Re’s unique long-term commitment sends a strong signal emphasising that a pure climate solution like Climeworks’ technology is important to reach the Paris Agreement climate targets.
Supporting the rapid scale up
This commitment is by its nature providing a structure for interested buyers to enter into similar purchase agreements with Climeworks. Swiss Re is sending a key demand signal to carbon removal solution providers and investors. Pioneering customers like Swiss Re and their long-term commitment prove that a market for measurable and permanent carbon dioxide removal already exists today and will grow significantly in the future.
Bringing climate solutions to scale not only requires the right demand signals, but also de-risking and financing. This is why the partnership between Swiss Re and Climeworks goes beyond the pioneering 10-year carbon removal purchase agreement with further joint activities being assessed together.
About Climeworks’ direct air capture and storage technology
Powered solely by renewable energy, Climeworks’ direct air capture plants capture CO2 from the air. In Iceland, Climeworks’ partner Carbfix mixes the CO2 with water and pumps it deep underground where it reacts with the basaltic rock formations and mineralizes: the CO2 literally turns into stone. Climeworks’ technology is scalable and does not compete with arable land. This September, Climeworks is going to launch its new large-scale direct air capture and storage plant ‘Orca’ in Iceland, bringing large-scale direct air capture technology to reality.