First-of-a-kind Pilot for Financing Carbon Removals Launches

In a groundbreaking move to accelerate the carbon removals market, CUR8, UNDO, British Airways, and Standard Chartered have partnered to launch a first-of-a-kind financing pilot. This initiative aims to unlock debt financing for carbon removals, crucial for achieving the global climate target of limiting warming to 1.5 degrees by 2050.

Partnership Details

This innovative pilot was announced at COP28, following a McKinsey report highlighting a $6 trillion to $16 trillion funding gap necessary to achieve net zero by 2050. The collaboration among CUR8, a leader in procuring high-quality carbon removal credits; UNDO, a pioneer in enhanced rock weathering; British Airways, a major buyer; and Standard Chartered, a key financial institution, seeks to bridge this gap.

Importance of Carbon Removals

Carbon removal involves extracting CO₂ from the atmosphere and securely storing it. Techniques range from afforestation to advanced methods like direct air capture and enhanced rock weathering. Scaling these solutions is vital to meet climate targets, yet financing remains a significant hurdle.

CUR8, supported by Google Ventures, aims to drive demand for carbon removal credits through multi-year purchase agreements and by alleviating suppliers' working capital challenges. British Airways has committed to purchasing over 4,000 tonnes of carbon removal credits from UNDO, supported by Standard Chartered as the banking partner.

Objectives of the Pilot

The pilot intends to create a financing blueprint that allows carbon removal suppliers to scale with debt financing secured against future client demand. This approach aims to establish credit histories for suppliers and meet their working capital needs, thus moving away from bespoke financing structures.

Statements from Partners

Carrie Harris, Director of Sustainability at British Airways:
"Carbon removals are essential to our net zero strategy. This pilot is a pivotal step toward unlocking future investment and accelerating the scale-up of carbon removals technology. It reinforces our commitment to net zero by 2050."

Marta Krupinska, CEO & Co-Founder at CUR8:
"Rapid technological and scientific innovations require novel financing solutions. This pilot with UNDO, British Airways, and Standard Chartered demonstrates that debt financing is crucial for scaling carbon removals. We aim to bridge the financing gap for the most promising suppliers."

Marisa Drew, Chief Sustainability Officer at Standard Chartered:
"Our focus on carbon removals is integral to our net zero delivery. Partnering with mission-aligned entities allows us to develop financing structures that support providers in scaling up and accessing greater capital to expedite carbon removal."

Jim Mann, Founder and CEO at UNDO:
"Enhanced rock weathering is a robust, scalable carbon removal solution with numerous co-benefits. British Airways' leadership in this partnership exemplifies the progressive collaborations needed to achieve the IPCC's goal of removing 10 billion tonnes of carbon annually by 2050."

About the Partners

CUR8:
Founded by Marta Krupinska, Dr. Gabrielle Walker, and Mark Stevenson, CUR8 specializes in high-quality carbon removals, supporting global suppliers across nature and technology. Their mission is to facilitate 1 billion tonnes of carbon removals annually by 2050.

British Airways:
Committed to net zero carbon emissions by 2050, British Airways focuses on operational efficiency, fuel-efficient aircraft, sustainable aviation fuels, and emerging technologies like hydrogen-powered aircraft and carbon capture.

Standard Chartered:
A leading international bank, Standard Chartered drives commerce and prosperity in 53 dynamic markets. The bank's commitment to high-integrity carbon markets supports global net zero progress.

UNDO:
UNDO specializes in enhanced rock weathering, a scalable technology that removes CO₂ while improving soil health and crop yields. Their process mimics natural geological weathering, providing a cost-competitive, permanent carbon removal solution.

Conclusion

This pilot represents a significant step toward scalable carbon removals. By leveraging debt financing and strategic partnerships, CUR8, UNDO, British Airways, and Standard Chartered aim to pave the way for a more sustainable future.

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