Carbonx Issued Its First Report On Bridging The Gap In Carbon Removal Financing

Carbonx Issued Its First Report On Bridging The Gap In Carbon Removal Financing - Carbon Herald

Carbonx Climate – a trusted permanent carbon removal procurement and management platform, issued its first report introducing a critical topic in ensuring carbon dioxide removal fulfills its purpose in offsetting residual emissions (ideally up to the last 10% after all reductions are worn out). 

The report called Bridging The CDR Financing Gap, Strategies for Scaling Deployment, defines CDR financing, discusses key issues like financing opportunities for a number of carbon removal methods, the unique challenges of financing options, and offers practical advice for suppliers and investors, aiming to spur collaborations. 

Authored by finance experts with firsthand experience in the early CDR market, the comprehensive study offers an in-depth analysis of the unique challenges and opportunities that comprises CDR financing.

The report closely examines things like financial instruments, bankability requirements, risk profiles per CDR method, collaterals, and the impact of cost structures (Opex vs Capex) on financing feasibility. It highlights the limitations of current approaches and addresses potential risks that could affect the cost of capital, business strategies, and overall performance.

Relevant: New Carbonx Procurement Round Attracts $7M For CO2 Removal

Understanding ways to fund carbon removal projects is critical for ensuring their deployment and often is considered one of the current biggest stumbling blocks towards acceleration. More about the Carbonx report and its important insights can be found here.

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