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JPMorgan Chase and Climeworks landmark CDR agreement heralds new standard in voluntary carbon market for direct air capture

Key take-aways:

  • Climeworks and JPMorgan Chase announce one of the largest purchases to date in the direct air capture industry (DAC) between a single corporate buyer and a single CDR company – valued above USD 20M.

  • The magnitude of the agreement demonstrates clear support for Climeworks’ high-quality, high-integrity approach to CDR with operational, measurable, additional, and permanent carbon removal services via DAC+S.

  • It also heralds the new standard for voluntary carbon market offtake agreements for DAC: companies’ immediate actions play a crucial role in achieving net zero targets and represent an essential component of the financing mechanisms needed for new, larger projects.

  • In this maturing market, a few corporate off-takers secure a portion of CDR services from future plants to support deployment, de-risk project development, and act as catalysts for other corporate buyers.

  • Brian DiMarino of JPMorgan Chase will join Climeworks’ Direct Air Capture Summit on June 6 in Zurich to share more about the firm’s approach to this agreement with Climeworks and their action plan on high-quality technological removals.

Climeworks x JPMorgan Chase&Co.
Climeworks, a global leader in carbon dioxide removal (CDR) via direct air capture and storage (DAC+S), announces one of the largest purchases of CDR services from a corporate buyer to date.

Climeworks, a global leader in carbon dioxide removal (CDR) via direct air capture and storage (DAC+S), announces one of the largest purchases of CDR services from a corporate buyer to date.

Valued above USD 20M, the agreement demonstrates the bank’s support for Climeworks’ high-quality and high-integrity approach centered on a measurable, 100% additional, and permanent removal of CO₂.

The action taken by corporate buyers today is essential for CDR companies to bring to life the economies of scale that are needed by 2050. For buyers, building long-term relations in this supply-constrained market now is key to accessing sufficient, high-quality supply in the decades to come.

This agreement heralds a new standard for the voluntary carbon market. Agreements of this magnitude and beyond are what is immediately needed and expected from corporate buyers going from net zero plans to net zero progress. They enable the capacity build-up that we all need to fight global warming at scale, in line with the latest climate science - complementing emissions reductions and as part of a portfolio of solutions.

On the project development side, such agreements are an essential component of the equation that enables project developers and solution providers such as Climeworks to bring new, larger projects to life. A few corporate off-takers securing a portion (in the range of 5-10%) of a future plant’s lifetime capacity in advance purchases of CDR services enables de-risking project development, securing additional financing, and acting as catalysts for other corporate buyers.

A more mature, functional market will support deployment-led innovation and propel CDR solutions at the speed and scale required to achieve an annual gigaton-scale removal capacity by 2050.

Jan Huckfeldt, Chief Commercial Officer at Climeworks
The commitment from JPMorgan is a landmark. Carbon dioxide removal is a complementary but essential tool to address unavoidable emissions and help the world move from net zero commitments to net zero progress. High-quality solutions like Climeworks’ measurable, additional, and permanent CDR via direct air capture and storage (DAC+S) need to be deployed fast. As we expand to achieve climate impact at scale, we look forward to supporting one of the world’s leading financial institutions on its journey to net zero.
Christoph Gebald, co-founder and co-CEO of Climeworks
JPMorgan’s long-term agreement with Climeworks sets a compelling example for the immediate action and the portfolio approach that are needed to deploy CO₂ removal solutions. The finance industry has no doubt become a trailblazer in supporting the scale-up of high-quality carbon removal solutions; today marks a new milestone in this field.

Climeworks is honored to welcome Brian DiMarino, Managing Director, Head of Operational Sustainability at JPMorgan Chase & Co., as a keynote speaker at its upcoming Direct Air Capture Summit on June 6 in Zurich. Brian will provide valuable insights into how the firm sees its role in signaling to stakeholders that procuring high-quality CDR solutions, such as Climeworks’, is an essential, and immediate next step to take, with corporates acting as change agents to realize CDR capacity at scale tomorrow.

Innovative technologies play an increasingly important role in the transition to a low-carbon economy. At JPMorgan Chase, we prioritize reducing our own environmental footprint. To complement our operational emissions reduction efforts, we’re collaborating with companies like Climeworks to address our unabated emissions today and, crucially, to support the development of scalable solutions that the world needs to achieve net-zero emissions by 2050,” said Brian DiMarino.

Advancing high-quality carbon removal solutions:

Direct Air Capture Summit

DAC Summit 2023

Guided by climate science, carbon removals and direct air capture need to permanently remove CO₂ from the air, in addition to drastic emissions reductions.

Monthly industry updates from Climeworks

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