Is Climeworks the 'Next Big Thing' in Climate Technology?
The Intergovernmental Panel on Climate Change states that, if we are to limit global warming to agreed-upon levels of 1.5°C, carbon removal schemes must be rolled out on a gigaton scale.
Climeworks is one of the world's fastest growing firms when it comes to the delivery of carbon removals.
With funding exceeding US$1bn, its direct air capture (DAC) technologies have positioned it as a go-to firm for corporations and governments looking to invest in sustainability.
"Direct air capture has gone from experiment to essential – and we're focused on scaling it by driving down costs and pushing innovation," says Christoph Gebald, Co-CEO and Co-Founder of Climeworks.
"Our hybrid model builds long-term demand while generating cash flow today, helping us grow a market that investors now see as inevitable.
"Crossing the US$1bn equity mark isn't just a milestone – it shows that carbon removal is real, needed and here to stay."
Introducing Climeworks
Climeworks was founded in 2009 by Christoph and his business partner Jan Wurzbacher, who were extracting CO₂ from the air under laboratory conditions at ETH Zurich, a university renowned for engineering.
By 2012, the pair were showcasing their DAC technology in demonstrations around the world and by 2014 Climeworks' first small-scale DAC plant became fully operational.
Today, Climeworks specialises in developing best-in-class carbon removal strategies for some of the largest companies in the world, combining nature-based solutions with engineered technologies, like DAC.
In 2021, Climeworks launched Orca, the world's first DAC and carbon storage plant.
Mammoth, the firm's second plant, opened in Iceland in 2024 and is around 10 times larger than its predecessor.
Cypress, a new facility currently under construction, will be Climeworks' first commercial DAC and storage plant in the US, set to scale up carbon removal capacity and bring this technology closer to key North American markets.
Alongside DAC, Climeworks also employs nature-based solutions including reforestation, biochar creation and mangrove planting.
Are these solutions credible?
Climeworks states that its due diligence model employs a rigorous set of criteria to vet the highest quality carbon removal solutions.
Its framework groups quality criteria across three categories: trust, impact and risk.
Climeworks' four core attributes of trust are measurability, end-to-end carbon accounting, checking the removal would not have otherwise occurred and third-party certification.
Impact attributes encompass permanence or durability, co-benefits that are both social and environmental, availability, scalability and price and long-term affordability.
Risk encompasses a variety of areas including storage reversal, leaked or displaced emissions, negative social and environmental risks and execution risks.
Which businesses are using Climeworks' solutions?
SAP is just one of the major businesses working with Climeworks to secure carbon credits.
"Investing in quality carbon removals addresses emissions we can't eliminate directly," says Sophia Mendelsohn, Chief Sustainability & Commercial Officer at SAP.
"Our Climeworks partnership secures high-integrity capacity at preferred rates while protecting against price volatility.
"This investment also strengthens SAP economically - we can now develop new products that meet evolving customer, partner, and regulatory expectations."
TikTok is another major company to have selected Climeworks for its sustainability endeavours, procuring more than 4,600 tonnes of carbon removal through DAC, biochar and reforestation.
Ian Gill, Global Head of Sustainability at TikTok, says: "We carefully evaluated multiple providers to build a high-quality carbon removal portfolio.
"Climeworks provided a solution that meets our highest standards and aligns perfectly with our sustainability strategy as we work toward carbon neutrality by 2030."
