Bayer AG just made its first purchase of tech-based carbon removal credits from German startup Novocarbo.
The announcement came today from Novocarbo, which is a climate tech company that specializes in the production of biochar.
The transaction was facilitated by the marketplace for carbon projects Callirius AG, which prides itself in its ‘data-driven, science-backed, and well-regulated framework’ that ensures the high quality of its carbon credits.
As outlined by the IPCC, carbon removal solutions and the credits generated by them are a key component in the fight against climate change, as simply reducing emissions will not be enough to limit rising global temperatures.
Hence, all approaches that can remove existing CO2 from the atmosphere need support in order to reach the needed scale and have a meaningful impact on the climate crisis.
When major companies and governments invest in carbon removal credits, such as in the case of this latest transaction between Bayer and Novocarbo, both tech- and nature-based carbon dioxide removal (CDR) solutions get the financing necessary to expand and grow.
Currently, biochar is one of the most promising carbon removal methods, as it binds CO2 and can be stored in a permanent carbon sink, such as concrete or soil.
Biochar has additional uses aside from removing planet-warming gasses from the air, for instance, it is particularly useful in agriculture, as it acts as a soil conditioner and nutrient store.
Thus, the technology is especially interesting to Bayer, as one of the world’s largest agricultural groups.
„Biochar is a particularly promising carbon removal technology for us because, in addition to actively removing CO₂ from the atmosphere, it also has positive effects as a soil improver for agriculture. The co-benefits of biochar support our sustainability goals,” said Dr. Klaus Kunz, Head of ESG External Engagement and Performance Reporting at Bayer.