Swiss Re, one of the world’s top reinsurers, has signed a fresh multi-year deal with carbon removal platform Carbonfuture. At more than 17,000 tonnes, it is one of the largest CDR deals of its kind to date by volume.This move is seen as a real vote of confidence in the carbon removal market, and a signal that trust and integrity are of paramount importance to companies when it comes to participation in the sector. The Carbonfuture platform prioritizes transparency and accountability, and aims to eliminate the risks that can be associated with this emerging market.
For individual companies to reach net-zero emissions, they must both reduce their carbon emissions and participate in effective carbon dioxide removal solutions. Unfortunately, many carbon offsetting and carbon credit projects and methods have been mired in controversy, with bad actors engaging in practices that are ineffective at best and fraudulent at worst. This is the problem that Carbonfuture is solving.
In order to be trusted, the carbon removal market needs to meet the highest standards of monitoring, reporting and verification (MRV). Adhering to very strict controls, using the most transparent accounting methods, and fully tracking the carbon journey are all of paramount importance. Carbonfuture is fully committed to these processes, and its approach is precise, transparent and verifiable. It is for these reasons that Swiss Re has chosen to renew its commitment over a multi-year deal.
Tom Spencer, Environmental Management Specialist at Swiss Re, detailed the company’s position in a statement: “Carbonfuture’s sink-tracking technology, which keeps a record of where each bag of biochar is added to a carbon sink, ensures that buyers “know where the carbon is.” This protects against the biochar being used for means other than carbon removal and was an important reason for Swiss Re to choose Carbonfuture as a supplier.”
The carbon removal industry needs to grow at scale and become a mainstream practice if we are to reach net zero by 2050. This can only happen if there is integrity in the industry, and Carbonfuture is a key leader in this regard. The company received significant investment in early 2022 and more recently raised €5.5 million to accelerate growth. This deal with Swiss Re is one of the largest CDR agreements ever made, with more than 17,000 tonnes of carbon removals being purchased. It’s a clear sign that when trustworthiness is put at the top of the agenda, then big steps can be taken.
The CEO at Carbonfuture, Hannes Junginger-Gestrich, emphasized the significance of this deal and what it means for the future: “The partnership with Swiss Re is of vital importance to Carbonfuture: Their multi-year commitment once again sends a strong signal emphasizing that a transparent and impact-based climate solution is necessary to reach a higher credit quality at lower risk, and ultimately scale climate action to stay within the limits laid out by the Paris Agreement.”
In addition to Swiss Re, Carbonfuture has already secured other major partnerships, such as those with Microsoft and with Klarna. Elsewhere in the carbon removal space, there are more signs that the market is growing — in March 2022 direct air capture startup Heirloom raised $53 million, and in April 2022 another direct air capture company, Climeworks, raised $650 million.
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