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Scaling carbon dioxide removal now to meet future net-zero targets
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:
- 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.
- 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.
- 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.
The business case for climate investments with Sophie Bruusgaard Jewett │ What goes up must come down, Episode 9
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, CEO and Co-Founder of Morescrope
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
Conclusion
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.
How intermediaries drive growth for essential carbon removal pathways.
How can we manage costs while developing diverse removal solutions?
Emerging solutions are essential for a diversified and resilient CDR portfolio. There is no single 'silver bullet' method for carbon removal – each has its own capabilities and limitations that factor into its scaling potential. We must pursue a suite of pathways to fight climate change, including emerging solutions. However, these are often nascent technologies, operating within a broader supporting ecosystem that is still under development. This is evident in the limited pool of entities capable of executing third-party validation and verification audits, as well as the implementation of measuring, reporting, and verification (MRV) systems. While improving quickly, these factors can hinder the roll-out of a project or technology.
It's a real chicken-and-egg problem: early-stage solutions need funding to mature, but high price and limited supporting infrastructure make widespread investment seem both costly and risky. On the other hand, organisations with net-zero targets know they need to purchase diversified CDR to reach net zero, but can pause due to these barriers. As a result, many projects struggle to secure off-takes or investment due to their early-stage status and high price per tonne.
The power of aggregation and intermediation: how 'regular' companies can help scale the market.
While tech giants or large banks can financially support record-breaking CDR purchases on their own and even handle their due diligence and contracting, most companies need alternative approaches. Most entities understand best practices when it comes to carbon removal in Net Zero strategies, but they need support in mitigating price of credits, understanding the broader market complexity, and engaging meaningfully with suppliers.
By working with clients over long-term, multi-year commitments, we can support stronger planning for individual clients. At the same time, we also aggregate their demand with that of other clients, creating a buyer pool to take advantage of particular market opportunities that arise from our dialogue with key project partners, such as InPlanet. This coordinated approach enables us to provide greater certainty to projects and then pass that value back to our clients through risk-mitigated contracting approaches.
For sustainability teams and leads managing complex decarbonisation strategies among many other objectives, procuring a diversified and cost-effective CDR portfolio alone is simply not feasible. Klimate simplifies this process. We help clients build balanced portfolios of vetted projects while selectively providing pre-financing to suppliers, reducing a project’s costs per tonne. Through bulk purchasing, we create direct savings for clients while fostering both a more supportive ecosystem for CDR innovation and price reduction.
A case study in Klimate InPlanet Partnership: innovative Financing & Structuring
Our collaboration with best-in-class carbon removal projects enables us to demonstrate year-on-year how innovative financing structures facilitate scaling. One notable example is our partners at InPlanet, a project developer specializing in Enhanced Rock Weathering (ERW).
Enhanced rock weathering, in general, faces several challenges, including:
- High baseline price per ton, especially for near-term credits.
- MRV and certification infrastructure are still in the process of maturing.
- Low availability of spot credits excludes ERW from many "same year" credit portfolios.
Still, ERW is a highly permanent and scalable solution, with broader co-benefits — an essential piece of the climate toolkit.
InPlanet, in particular, is a key leader in the ERW category, with an emphasis on tangible co-benefits for local farmers, high project transparency, and, importantly, certified MRV standards via Isometric. Their approach reinforces trust and integrity in ERW as a carbon removal method.
By aggregating demand from clients with forward-looking net-zero strategies, Klimate can sign multi-year agreements with InPlanet with later delivery timelines, looking forward to 2030. And, pre-financing helps cover the gap between some of the upfront operational costs and the ensuing sequestration timeline, inherent to ERW. The equation of later delivery plus pre-financing results in a lower purchasing price per tonne, lowering barriers to entry and thus strengthening the incentive to act now.
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Why does this financing structure matter to a CDR buyer?
Many companies seek to meet net-zero and SBTi targets by 2030. When purchasing CDR, these goals align with the later delivery timeline of our multi-year commitments. Buyers benefit from a balanced portfolio of carbon removal solutions, featuring both short-term and long-term deliveries while mitigating risk and achieving annual targets in the short term.
That InPlanet has already successfully issued third-party certified credits via Isometric adds to the credibility of the project and also instills confidence that clients can utilise these credits with confidence for neutralisation purposes in their strategy.
How we sustainably scale the market.
When Klimate aggregates demand across various clients, we also identify the right opportunities that strike a balance between risk and benefits. These could be a combination of different delivery timelines, project or technology preferences, voluntary or mandatory frameworks, risk appetites, or connections to broader sustainability objectives.
Mitigating risk across diversified pathways and project developers can also help build confidence across the market, as portfolios and client investments are more stable and secure. One project or pathway that underdelivers or struggles will not mean the entire market suffers. It benefits market health as a whole and allows for prioritising different pathways for different purposes. This is particularly apparent across permanence and delivery timelines, allowing companies to depend on more mature technologies for short-term deliveries while still supporting the growth of others in the long term.
A model that meets the mission
Klimate's model unlocks long-term viability for enhanced weathering, contributing to our mission of accelerating and developing essential pathways while also bringing tangible impacts to the climate and communities. InPlanet has already demonstrated project-level success and has particular credibility from its previous successful issuance of certified credits via Isometric. Partnering with projects like InPlanet enables our clients to benefit from strategic alignment, cost savings, and progress towards decarbonisation. And this growing support signals a mature, scalable pathway for permanent carbon removal — essential for achieving net zero.
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Carbon Removal Specialist