Climeworks has published an optimized carbon dioxide removal (CDR) portfolio blueprint, aiding companies in reaching carbon removal goals with increased efficiency and lowered costs by 2050.
The optimized portfolio blueprint is designed to deliver maximum effectiveness while enabling cost savings and accelerated scale-up by 2050, all while respecting our planet’s ecological boundaries.
Highlighting that both natural and engineered CDR solutions will be vital for successfully removing 6–16 gigatons of CO2 annually in order to meet climate targets by 2050 and limit global warming to no higher than 2°C, Climeworks designed this portfolio model to ease organizations looking to make smart and impactful CDR decisions.
The CDR portfolio blueprint includes the most advanced solutions currently available on the market, covering pathways like reforestation, mangroves, biochar, enhanced rock weathering (ERW), bioenergy with carbon capture and storage (BECCS), and direct air capture and storage (DACS).
The optimized portfolio was created with two building inputs: the projected evolution of unit prices for each CDR pathway over time and the expected ramp-up curves for their removal volumes.
As a result, the blended levelized CDR price across the entire portfolio model is set at around $225 per ton.
According to Climeworks, this global optimized portfolio can bring about an average CDR cost savings of more than $125 per ton compared to prevailing carbon tax rates, along with a twofold faster deployment for novel CDR pathways compared to standard industry forecasts.
By choosing to adopt this optimized portfolio model, CDR investors can tap into 20-35% estimated risk-adjusted savings, made possible through the diversity of CDR approaches covered in the portfolio blueprint.
Relevant: NYK Invests In A CDR Portfolio By Climeworks
Additionally, the Climeworks publication highlights that by 2030, this portfolio model is projected to deliver durable CDR that would match or surpass the cost-effectiveness from investments in reforestation credits.
Taking into consideration the expected and forecasted growth trajectory of nature-based and engineered solutions by mid-century, this model offers a step-by-step process for reaching CDR targets aligned with SBTi and Oxford Net-Zero Aligned CDR Principles.
For the companies that decide to embark on this CDR portfolio journey, the Climeworks team will also provide guidance and support throughout the entire adoption process.
Read more: SAP And Climeworks Join Forces In A Multifaceted CDR Collaboration
