🏦 Is carbon dioxide removal bankable?

✅ Yes, it is starting to be, finally! But some approaches more than others.

🇨🇭 That is my main takeaway from Zurich Climate Week and the Financing CDR Summit hosted by Carbonfuture, SIX, and Google.

🤔 Until now, most financing for durable CDR has come from venture capital. This works well for some approaches, especially tech heavy, high-risk, high-reward ones such as DACCS. But it has clear limitations: it cannot pay for large-scale projects and did barely touch more mature technologies such as biochar carbon removal (BCR).

🔄 Things are now changing.

💚 Major banks are starting to seriously look at CDR, often collaborating directly with multilateral development banks. Together, they can offer de-risked products - loans and outcomes bonds - tailored towards the needs of CDR project developers and with competitive returns.

🌎 This seems to be particularly true for BCR companies in the Global South. After years in the shadows, BCR is now recognised as the most shovel-ready technology available, reliably delivering credits to customers.

🇧🇴 Financiers are paying attention. The best and most inspiring example - but far from the only one - is Exomad Green, the world’s biggest CDR company. Initially financed by local banks in Bolivia, they are now looking at a first of its kind nine-figure loan from two well-known financial institutions to significantly scale their operations.

🤩 This is a HUGE sign to the market and all the CDR entrepreneurs out there. It shows that CDR is bankable at scale.

🔎 I will be diving deeper into this specific topic over the coming weeks and months. I am particularly interested in the bankability of other durable CDR approaches and how financiers are looking at this. 

⁉️ What is your take? Especially those out there seeking or providing finance to CDR projects? 

👏 Finally, a huge compliment to the organisers of the first ever Zurich Climate Week. What a success it was! Over 200 events, dozens on CDR, site visits, and all within walking distance of each other. I had a blast and cannot wait for ZCW 2027!

Follow the conversation