Sustainable Finance

Climeworks Signs Latest Equity Round and Raises USD 650 Million

Published on: 8 April 2022 07:33 PM
by KnowESG
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Climeworks, a Swiss company focusing on carbon-capturing technology, signed an equity round of USD 650 million to drive its sustainable efforts further. The investor base included renowned institutional technology and infrastructure investors internationally. The fund raised by the firm demonstrates its strength in the carbon removal industry and the trust placed by several high-quality investors.

According to the latest report unleashed by the IPCC, it is essential to remove carbon dioxide to limit global warming to 1.5 degrees Celcius. To reach net-zero emissions by 2050, besides emissions reductions, carbon removal solutions should be put in place at scale to remove residual CO2 emissions.

The recent announcement made by climeworks displays its significant contribution to the carbon removal industry as a global leader in carbon capturing technology.

The financing round is co-led by GIC and Partners Group, which sees participation from Baillie Gifford, Carbon Removal Partners, Global Founders Capital, John Doerr, M&G, Swiss Re and other new and existing shareholders.

Climeworks has been very active in direct air capture technology since its foundation in 2009. It has become the most advanced player in the carbon-capturing industry following the launch of the world's largest direct air capture and storage plant in September 2021.

The funding will help unlock the next stage of Climeworks' growth, including scaling direct air capture up to a multi-million-ton capacity and establishing large-scale facilities when carbon removal becomes a trillion-dollar market.

Christoph Gebald, co-founder and co-CEO of Climeworks, said: "We are proud to partner with our new investors and thankful for the renewed trust of our existing ones, all committed to the long-term journey of Climeworks. It is thrilling to see the appetite and support of globally leading investors towards the scale-up of our technology; this is a great milestone for our company as well as the entire industry.”

Jan Wurzbacher, co-founder and co-CEO of Climeworks, said: "We founded Climeworks with the vision to provide the world with a tech that has the potential to reverse climate change. Accelerating the scale-up of carbon removal capacity will play a crucial role in global efforts to keep global warming under 1.5°C, positively impacting the lives of billions of people. And this is what we will do starting now.”