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The net zero toolkit with Tobias Sørensen | What goes up must come down, Episode 8
TL;DR - key points from the episode.
- Captured CO₂ has multiple uses and multiple pathways worth considering.
- Comparing two pathways, e-fuels and permanent storage (like BECCs & DAC), storage is likely more cost competitive and brings greater benefits.
- Storage breakthroughs in the Nordics build a strong foundation for a cost-competitive future.
- The voluntary market can help build out the infrastructure alongside state-tenders. Still, policy intervention is necessary to scale.
Comparing optimal technology pathways: e-fuels, storage, and aviation
What’s the smartest way to use CO₂ to reach net zero? Tobias shares insights from a recent analysis showing that storing CO₂ is more cost-effective and scalable than converting it into e-fuels. E-fuels, made from green hydrogen and captured CO₂, are promoted as sustainable aviation fuel (SAF). But according to the report, Direct Air Capture with Storage (DACCS) delivers the same climate benefit with lower energy use and cost. Since CO₂ is a limited resource, prioritising long-term storage leads to greater system-wide impact. Simon and Tobias discuss the implications of SAF blending–the current EU aviation mandate–and alternatives that deliver equal climate benefit.
“We suggest... that this should be allowed as part of the toolbox when aviation and airline companies are obligated to blend in e-fuel. Let them achieve the same climate benefit by capturing CO₂ from the atmosphere and storing it permanently underground—at a much lower cost.”
— Tobias Sørensen, Concito
Challenges and trade-offs for decarbonisation
Public funding is a limited resource. Considering recent public tenders, Simon and Tobias discuss which pathways to prioritise for a cost-effective toolkit. Important factors considered for effectiveness include operating hours, infrastructure life span, and decarbonisation alternatives. A few stand-outs for optimal carbon capture and permanent storage include cement, waste-to-energy using non-fossil sources (BECCS), and biogas. But, considering the reliance on voluntary purchases today, Simon addresses one challenge of private support: companies choosing certifiable credits over technically-efficient ones.
Another challenge lies in sustainable biomass scaling. With demand across multiple sectors (CDR, materials, hydrogen, biodiversity, food), land reallocation becomes crucial. Tobias suggests reducing meat consumption could support strategies like biochar and reforestation.
Nordic CO₂ Storage Developments
With a few notable storage plants online in the Nordics, more are being explored. These early projects are expensive but essential for de-risking value chains and learning-by-doing. Simon and Tobias highlight the role that onshore storage in Denmark could play, as a cost-effective option when compared to todays price ranges.
Voluntary buyers play a crucial early role but are not sufficient to sustain market growth alone. Wide-spread recognition for carbon storage solutions, whether captured at source or removal, as a highly beneficial and effective solution must continue.
“It’s a tool we have in our climate solutions toolbox. And when we do modelling around the scarce resources we have—the limited economic resources—the cost-effectiveness proves that for certain sectors, even something as expensive as DAC is part of the solution.”
—Simon Bager, Co-founder of Klimate
Implications and Recommendations
Beyond increased traction to removal and storage in voluntary markets, stronger policies are needed to funnel climate finance. Today’s EU ETS and it’s potential inclusion of negative emissions is a step forward to drive adoption. But, current price-levels of removal and storage are misaligned with ETS cost-per-tonne. The market needs contracts for addressing this difference, public-private co-investment, and coordinated procurement strategies.
CDR is not a license to delay reductions but a vital climate tool for hard-to-abate sectors like aviation. Decisions today—on policy, investment, and market design—will shape the effectiveness and equity of future carbon strategies.
Klimate’s Carbon Asset Manager (CAM): the portfolio software for a tech-enabled net zero.
A new category of software.
Companies rely on software when business needs to outgrow a simple Excel sheet. Since our inception, we’ve helped companies access vetted carbon removal credits, create diversified investment portfolios, and strategise procurement to meet any goal. Carbon removal strategy has moved beyond a transactional, one-time purchase. Our carbon portfolio manager eliminates the manual labour and potential errors of multiple sheets while setting climate leaders up for what’s coming.
Why sustainability professionals need The CAM.
Sustainability professionals are pressed for time and budget to manage all the moving pieces of a good net zero strategy. Between balancing progress on overarching decarbonisation targets, procuring renewables, and making purchases from multiple vendors, meeting targets is already tricky. Moreover, companies that want to invest in a diversified portfolio face increasingly complicated procurement, management, and reporting for their carbon credits to comply with voluntary or regulatory standards. Bottom line: A solid net-zero strategy with carbon removal credits creates significant administrative challenges for companies, including the need for endless spreadsheets, coordination with individual registries, and manual retirement.
Without a proper tool to centralise data, information quickly becomes fragmented and prone to error. Even businesses just getting started in procuring carbon credits face multiple, manual integrations, creating extra administrative work and room for error.
We’re entering a new era of carbon compliance where the need for removals and the complexity that comes with it creates massive challenges for corporates working toward net zero. Spreadsheets may be the origin of all software. But companies must consolidate their data if they want a real chance at achieving their targets efficiently and without creating unnecessary, avoidable risks. We’re equipping sustainability teams with a critical net zero tool before they’re forced to have it, helping them stay ahead of coming requirements and build confidence in their strategies today.
-Erik Wihlborg, CCO
How can The CAM simplify your carbon removal strategy?
With growing activity comes growing scrutiny. The last financial year alone has brought several regulatory changes, i.e., EU Green Claims, CSRD, multiple EU-state CDR policies, and an updated SBTi Net Zero Standard. To stay ahead of changing regulations and the rapidly evolving carbon market, we’re unveiling a new portfolio manager called The CAM. This portfolio manager is built with climate leaders in mind. Klimate’s portfolio management software allows you to centralise all your credit data from different sources, track goal status, and confidently report on your accomplishments.
- Centralise data to avoid unnecessary error: Instead of managing multiple sheets, import all credit purchases to one source with automated overviews in your personalised dashboard. Save time (and stress) of procurement by accessing vetted projects, data from a 301 point due diligence, and consolidate all your carbon credit purchases–even across vendors.
- Flexible asset grouping for changing targets: Was Scope 2 higher in 2024 than anticipated? No problem. Organise your credits to reflect any strategy and simply re-allocate to keep yourself on track. Monitor your progress even with changing goalposts, integrate with multiple registries, and retire all assets with a single click to make meeting your target clear and simple.
- Confidently report on your progress: Whether voluntary or compliance-based, transparent and auditable communications are critical to protect your brand from greenwashing. Our modular reporting tool and single-click export enable you to report and comply with any modern requirement from CSRD, SBTi, and other relevant frameworks. Access communication guidance, project metrics, and visual content to make your investment tangible for your audience.
Tech infrastructure is crucial for market growth.
Carbon removal is growing and evolving rapidly. An essential piece of net zero, the current supply trajectory still isn’t efficient enough to reach these global goals alongside ambitious reductions. Today’s projections call for upwards of 10 gigatonnes of carbon removed year-on-year by 2050. This demands a massive degree of public and private effort to contribute enough resources, especially financial. We need to collectively invest in the order of millions or even billions of dollars to achieve net zero. In addition to sustainable, justly scaled land use and resource allocation for this massive physical undertaking, we need the right digital infrastructure to scale efficiently and securely. For companies and organisations with net zero targets, doing their part of global net zero must build dynamic strategies and streamlining of once-complicated procurement efforts, backed by digital assurance like The CAM, to be successful.
Exploring the State of CDR with Tank Chen | What goes up must come down, Episode 7
TL;DR: Key Takeaways
- 2024 saw a 78% growth in the voluntary carbon removal market, with delivery of carbon removal credits increasing by 120%.
- Microsoft remains a dominant buyer, but new players and innovative purchasing models are emerging in 2025.
- Asia, particularly Taiwan, Japan, and South Korea, is beginning to engage seriously in CDR, mainly on the demand side, with potential to expand supply through industrial capabilities.
- The Nordics leverage abundant renewable energy and geological storage to position themselves as a global hub for CDR technologies and deployment. In tandem, the newly launched Nordic Carbon Removal Association provides a path for broader corporate inclusion.
- Trust, financing, and buyer diversification remain critical challenges for scaling CDR globally.
Insights on overall market growth.
The voluntary carbon removal market experienced significant growth in 2024, with contracted volumes rising from 4.5 million to 8 million tonnes of CO₂ removed, marking a 78% increase year-on-year. Delivery also grew impressively by 120%, signalling that the market is beginning to move beyond promises to actual carbon removal on the ground.
However, the first quarter of 2025 showed a dip in contracted volumes. This pause is seen not as a setback but as a preparatory phase for the market’s next ascent. Following the quarter’s close, major deals by Microsoft with various suppliers effectively doubled the market overnight, signalling renewed momentum. Both emphasise the importance of buyer diversification beyond tech giants, noting how the middle players are important as well. Yet, there is growing interest from mid-sized companies eager to integrate CDR into their sustainability strategies. Excitingly, new buyers are doing more than just dipping their toes, making large purchases from a range of methods and projects in Q1 '25.
“The market grew 78% in 2024, but 2025’s first quarter was a back to base came moment—preparing for the big climb ahead.” – Tank Chen
Catching up with Asia's CDR scene.
Asia's CDR scene is gaining traction, particularly in Taiwan, Japan, and South Korea. While the region currently has limited supply-side capacity — with Taiwan hosting just one biochar facility — demand is growing, supported by corporate interest and government initiatives. Japan’s integration of CDR into its Green Transformation (GX) League exemplifies this shift, combining government, private sector, and academic collaboration to craft forward-looking policies. Tank highlights the multifaceted roles Asian corporations play, not just as buyers but also as financiers, component manufacturers, and potential competitors in the space.
Regarding China, both hosts agree that its entry into the CDR market is inevitable. The nation is likely to leverage its industrial capacity to rapidly scale technology deployment both domestically and internationally. The comparison with China’s rapid rise in electric vehicles and solar technology underscores the potential speed and scale of its involvement.
Zooming in on the Nordic CDR advantage.
The Nordic region stands out as a promising CDR powerhouse, combining strong government subsidies, advanced energy infrastructures, and vast geological storage potential. Countries like Norway, Iceland, and Denmark have the capacity to store billions of tonnes of CO₂, making them ideal locations for a range of CDR suppliers. The new Nordic Carbon Removal Association aims to elevate the region to become a key player in both demand and supply.
Simon notes, “The Nordics have a comparative advantage... it seems difficult to find many other locations in the world with these combined assets.”
In addition to the regional comparative advantage, competition is a key element to bring Nordic-based large companies onboard. Support systems like the Nordic Carbon Removal Association are needed to shift paradigms.
Looking ahead.
Despite these encouraging developments, challenges remain. The market is still dominated by a small number of large buyers. Some innovative technologies face financial risks if demand does not scale quickly enough.
Both hosts also touch on cultural perceptions of carbon credits, with Asia and the Nordics showing differing attitudes shaped by their unique policy and market histories. But, there are threads between Northeast Asia and the Nordic countries, including historical collaboration on wind and other green sectors. This creates a strong foundation to combine their respective strengths to accelerate global carbon removal efforts.