Climeworks and Swiss Re have signed up the world’s first, and largest, 10-year purchase agreement for direct air capture (DAC) and storage of carbon dioxide. As everyone in the insurance indsutry knows there is huge pressure from activists and western governments to reduce CO2 emissions – DAC is basically a catalytic converter for fresh air; remove the CO2 bit and then release clean air back into the atmosphere.
The great thing about removing carbon from the air on an industrial scale is that it allows insurers to tick that ESG box on their company accounts, update customers on social media and head off the next XR protest at the pass, because you can legit claim that your company IS doing something to fight carbon emissions. Here’s the word from Climeworks;
- Scientists and opinion leaders agree that direct air capture and storage is needed to fight climate change and the technology needs to be scaled up as soon as possible as highlighted in recent IPCC report
- In a pioneering commitment Swiss Re signs the world’s first and largest 10-year carbon removal purchase agreement with direct air capture and storage worth 10 million USD
- Further, Climeworks and Swiss Re have committed to a strategic partnership. The collaboration will include developing risk management knowledge and risk transfer solutions, as well as to explore future investment and project finance opportunities
- Such a partnership is unique and so far unrivalled in the voluntary carbon market for high-quality carbon removal. It is a unique lever to support the development of the direct air capture and storage industry.
The summer of 2021 has shown a vast variety of extreme weather events around the world and thereby given an outlook on the consequences of the climate crisis. To limit global warming to safe levels, we need to do everything we can. The latest report by the UN’s Intergovernmental Panel on Climate Change confirms that it is crucial to reduce our emissions drastically and on top of that remove unavoidable and historic carbon emissions from the air permanently. Climeworks’ carbon dioxide removal via direct air capture technology is the only solution that can reduce atmospheric concentration of CO2 in a scalable manner by capturing CO2 from the air today and storing it permanently underground.
Swiss Re’s pioneering commitment
Swiss Re committed in 2019 to reach net-zero operational emissions by 2030 by reducing their carbon footprint and removing any residual emissions. They are walking the talk by committing to a unique long-term partnership with Climeworks.
Swiss Re and Climeworks are launching a cutting-edge collaboration by signing the worlds’ first 10-year carbon removal purchase agreement. This first of its kind agreement is worth 10 million USD.
Both the length and the total value of the partnership are so far unrivalled in the voluntary carbon market for this type of innovative high-quality carbon removal. The partnership with Swiss Re is of integral importance to Climeworks: the re/insurance industry is at the forefront of assessing complex risk structures including those of climate change. Re/insurers are capable of structuring those risks and allocating them in an efficient way. Swiss Re’s unique long-term commitment sends once again a strong signal emphasising that a pure climate solution like Climeworks’ technology is important to reach the Paris Agreement climate targets.