Portfolios have been central to Klimate's advisory services from the beginning. In line with our mission to support the scaling and development of carbon removal projects and technologies, portfolios offer key benefits: They diversify impact, manage risk, and tailor investments to meet organisational goals. In a relatively young industry like CDR, new projects and technologies emerge constantly. So, it makes sense that climate leaders would "travel every road possible" to support climate solutions in our fight against climate change.

How does a CDR portfolio benefit your company's climate goals?

When approaching CDR investment, portfolios attract buyers for several reasons. Instead of picking one project, where buyers often need to sign long-term and large-scale agreements, portfolios offer a more flexible approach. Companies interested in CDR investment can also maximise impact, tailor their spending to meet specific goals, and balance risk. Ultimately, portfolios ensure that companies actually achieve their intended climate goals. Here's how:

1. Maximise and diversify impact

Most investment portfolios encourage diversification. In the case of CDR portfolios, diversification enables buyers to maximise their investment and provides a crucial balance between technologies and credit delivery timelines.

Carbon removal methods vary significantly in price, from €30 to €1,000 per tonne. And, ex-post credits, representing a tonne of already-removed carbon, are typically more costly than future deliveries from the same method or project. In terms of risk, some nascent technologies or up-and-coming projects—although essential to support—may not be a good fit for companies prioritising the certainty of delivery. This balancing act enables buyers to access projects they wouldn't otherwise be able to invest in, so that budget doesn't limit ambition.

2. Align with your organisation

Investing via a portfolio allows companies to make specific, tailored choices, regardless of their company size or budget. Deciding your own priorities and investing accordingly is a great way to boost the resonance of a CDR strategy in your organisation.

Some priorities may include how durably carbon is stored, catalysing nascent tech, or boosting specific co-benefits such as biodiversity. Companies can also consider the other vital areas beyond just 'carbon' to decide what makes a project 'good'.

Furthermore, some projects or locations may align perfectly with a company's story or industry. For example, Real Estate Company A is drawn to credits from a carbon mineralisation project where the carbon is actually injected into cement. Company A can support the development of an early-stage project that may benefit the carbon management of their industry in the long run, and at the same time, engage with nature-based solutions that contribute to biodiversity, another key metric of their ESG agenda. This choice balances cost, certainty, and impact.

3. Effectively manage risk and balance trade-offs

The CDR space is full of proven, scalable solutions and in this early stage of developing carbon markets, no single solution has emerged as the 'winner'. As new approaches and projects continue to emerge, there can be risks ranging from technological delays to failure to secure the necessary finance for business operations. The portfolio approach mitigates this risk, as it's easier to replace a portion of the investment, as opposed to the entire investment.

Additionally, all projects have strengths and weaknesses. A rigorous due diligence process is an essential step to gain awareness of both delivery risk and a given project’s trade-offs. Balancing a given solution’s trade-offs through a diverse portfolio further secures the positive impacts your investment can have.

The numerous impactful projects that exist are indeed worth supporting in their early stages, and they are all a part of the climate toolkit necessary for achieving net zero.

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Portfolios designed to best-fit client needs

Part of CDR strategy 101 is understanding what motivates the purchase, so you can align a procurement pathway that looks and feels like your organisation. These questions can help determine the composition of the portfolio and where the decision-making process will go:

• Are you looking for a specific number of tonnes or need a particular delivery timeline to meet your net zero commitments?
• Are you interested in specific impacts (permanence, co-benefits like biodiversity, jobs), locations, or SDGs?
• To what degree would you like to support nascent technologies versus established NBS/hybrids?

Any given strategy can and should evolve. As buyers become more knowledgeable or find their organisational goals shift with changing goalposts, portfolio distributions can easily adjust along with them. By starting with and well-balanced portfolio, companies can effectively price their residual carbon emissions and prepare for a net-zero future.

How portfolios help meet climate goals and create a functioning, mature CDR market

By developing a global marketplace that balances established projects and emerging technologies, we can scale important climate pathways and build the necessary market infrastructure. In the end, the climate doesn’t care where in the world a tonne of carbon is removed. Exploring and supporting diverse locations opens up the possibility of creating greater impacts. Looking beyond carbon helps address the multiple interconnected environmental crises, while the portfolio approach lowers barriers to entry, ultimately contributing to creating the robust market we need to achieve net zero goals. Supporting a diverse portfolio of projects with balanced costs and co-benefits across the globe is the most effective way to reach our shared climate goals.

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The 2030 and 2050 milestones outlined by the Intergovernmental Panel on Climate Change (IPCC) are fast approaching: a 45% emissions reduction by 2030 and net zero by 2050. Today, almost no country is on track to meet them. To stay within 1.5°C warming and avoid the most severe impacts of climate change, we must accelerate emissions reductions and the deployment of CDR. Estimates suggest that we will need between 6 and 16 gigatonnes of removals annually by mid-century; yet, the market today delivers only a fraction of that capacity. Bridging this gap requires urgent investment and deployment now.

Why is CDR an essential, near-term, climate solution?

Decarbonisation, or the reduction and eventual elimination of fossil-fuel-based emissions, is essential to fighting climate change. The science is clear—reductions alone cannot deliver a 1.5°C future. To some degree, on the order of a few to ten billion tonnes each year, negative emission technologies will be necessary to bring climate mitigation back on track and reach a final state of net zero. CDR directly addresses both historical and residual emissions: those already in the atmosphere and those that are extremely difficult or costly to reduce in sectors like heavy industry. Governments, companies, and organisations of all types must take ambitious action to reduce and remove in tandem.  

Most net zero frameworks have treated CDR as a final-stage activity, reserved for hard-to-abate emissions closer to 2050. Delayed CDR deployment is ill-advised for climate mitigation and overlooks its immediate value. Scaling removals today achieves three things:

1. Climate imperative: The pace of warming is accelerating, and mitigation pathways already assume large volumes of removals. Deploying CDR now helps close the gap between current trajectories and the 1.5°C goal.
2. Lower long-term costs: Early investment sends market signals. By growing supply chains, infrastructure, and financing mechanisms today, we avoid the cost spikes that would come from a last-minute scramble in the 2040s.‍
3. Climate credibility: Companies and governments are under pressure to deliver on climate promises. Integrating CDR now strengthens the credibility of net-zero pathways, backing ambitions with action.

We'll dive into each pillar below.

Why we can't wait: the climate imperative

CDR can close the near-term emissions gap and help address ongoing emissions. The 'emissions gap' is a term that notes the disparity between climate pledges and actual emissions levels. While emissions rise, the ambition and actual implementation of net-zero strategies lag. Paris Agreement signatories need to cut an astounding 42% of emissions by 2030 to get back on track with 1.5°C.

Deploying the entire suite of CDR pathways can play a significant role in helping to close this gap and get back on track with net-zero goals before it's too late.

Investing today lowers long-term costs.

Like renewable energy, the cost of CDR will fall as deployment scales. Projects today receive investment from diverse sources, primarily credit sales in the voluntary carbon market (VCM). Early demand signals, even from smaller investments today, contribute to broader market-building and boost trust in the viability of the CDR ecosystem. Building long-term offtake agreements now also de-risks technology growth and signals seriousness to stakeholders.

These are important mechanisms to help projects secure pre-finance, covering costs of operations and ultimately lowering the long-term purchasing price. On the individual buyer level, companies that commit early can secure access to scarce supply at predictable prices, rather than facing inflated costs in the 2040s. And those that price emissions today are more likely to decarbonise faster, saving money in the long-run.

Upholding climate credibility

In an era of widespread net-zero targets, stated climate ambitions often differ from expected or actual implementation. With climate credibility in question, organisations can leverage CDR to take responsibility for any ongoing emissions and offer tangible proof that their goals are more than hot air.

Stakeholders, from regulators to customers, want proof that pledges translate into measurable action. Companies that incorporate removals today demonstrate leadership, safeguard their brand reputation, and build trust by showing they are not waiting until the last minute.

Aligning internally to take action now

It is essential to build a strong internal business case for immediate CDR engagement. The strategic opportunity for CDR today lies in anticipating future risks and fostering genuine climate leadership. Here's why:

• Manage future risks. Supply is scarce today and will only continue to crunch as the thousands of net-zero target setters approach their target years and need to purchase offsets.
• Get in line with upcoming regulations. Whether voluntary or codified, climate legislation is around the corner, and ESG agendas are here to stay.
• Social license to operate. Taking action today boosts brand reputation and trust. Climate leadership is essential for stakeholder and employee satisfaction, and can even impact a company's valuation.

How we stay on track for our common climate goals

The role of CDR in 2030 is about scaling up: proving pathways, establishing standards, and building the infrastructure that enables exponential growth. By 2050, it must be delivering gigatonnes annually. That trajectory cannot be achieved without today's corporate and policy leadership.

For companies, the question is no longer whether to include removals, but when to do so. Early movers will secure lower costs, influence market design, and establish climate credibility. Governments, investors, and corporations all share responsibility, but businesses in particular have the chance to shape the market through procurement, partnerships, and long-term commitments. Net zero is not possible without CDR—and the time to scale it is now.

Introduction

In a world of shifting geopolitics and growing climate uncertainty, sustainability professionals are under pressure to keep climate action both relevant and impactful. The conversation is evolving. It is no longer just about ambition, but also embedding sustainability into core business strategies to drive resilience, manage risk, and ensure long-term profitability.

In this episode, Sophie Bruusgaard Jewett, CEO and Co-Founder of Morescrope, and Simon Bager, CIO and Co-Founder of Klimate, explore how climate leadership is adapting to this new reality. Drawing on insights from industry experts and real-world examples, they unpack what it takes to keep climate investments strategic, even in uncertain times.

TL;DR

• The business case for climate investments is evolving; companies need to demonstrate tangible returns.

• Sustainability professionals are increasingly collaborating with CFOs to align climate goals with financial strategy.

• Risk management, resilience, reputation, and relevance are essential frameworks for climate leadership.

• Data-driven approaches and adaptable reporting systems help sustain momentum despite regulatory shifts.

• Small and medium-sized enterprises face unique challenges but can benefit from simplified frameworks (e.g., the EU’s VSME).

Adapting to Uncertainty: A New Era for Climate Leadership

Over the past few years, sustainability was a dominant theme in corporate agendas, fuelled by global movements and supportive legislation. However, recent geopolitical events and political shifts in the EU have altered this landscape. This has led to a “pendulum swing” where climate initiatives are no longer the unquestioned priority they once were.

The role of the sustainability officer is changing from being on the sidelines to working closely with the CFO, presenting a clear business case aligned with company operations. This shift demands that sustainability professionals develop skills in finance and strategic business communication to remain influential within their organisations.

The Four Rs of Climate Strategy: A Framework for Long-Term Impact

A fundamental insight from the discussion is the practical framework built around the “four Rs”: Risk management, Resilience, Reputation, and Relevance. These pillars help translate climate initiatives into strategic imperatives that resonate with leadership and stakeholders.

• Risk management involves identifying and mitigating supply chain vulnerabilities and regulatory risks.

• Resilience relates to preparing the business to thrive in a low-carbon economy.

• Reputation ensures the company remains relevant and trusted to customers, investors, and the public.

• Relevance ties sustainability directly to the company’s core operations and long-term competitiveness.

“Putting your climate work on the shelf right now is a classic sign of short-term thinking. A resilient and robust strategy requires long-term thinking about risk management, resilience, and reputation.”

– Sophie Bruusgaard Jewett

The Power of Data and Strategic Integration

Data-driven decision-making is now central to effective climate leadership. Transparent, high-integrity data serves as a reliable anchor, which enables companies to measure impact, build credible business cases, and secure financing. Moreover, companies are increasingly using climate data to create value for customers and investors, leading to more strategic business applications.

Insights for Small and Medium Enterprises (SMEs)

While much attention focuses on large corporations, SMEs face similar challenges with fewer resources. Sophie points to the EU’s voluntary reporting framework (VSME) as a practical tool to help smaller companies prepare for future regulatory demands without excessive burden. Though some SMEs may delay action due to uncertainty, the growing expectations from larger supply chain partners mean climate accountability is increasingly unavoidable.

“Companies that dare to invest in climate performance and investments in uncertain times will be the ones that profit the most.”

– Sophie Bruusgaard Jewett

Summing up

Although today’s climate investment landscape is more challenging and unpredictable, it also offers a valuable chance for sustainability professionals to make climate action a core part of business strategy. To succeed, they need to adapt their skills, focus on long-term goals, and use data to show the real business benefits of their efforts. Companies that stay committed to climate investments, even during uncertain times, will be better positioned to gain a competitive edge in a future where sustainability is closely tied to resilience and long-term value.