CUR8, UNDO, British Airways & Standard Chartered To Finance Carbon Removal

CUR8, UNDO, British Airways & Standard Chartered To Finance Carbon Removal - Carbon Herald

Companies CUR8, UNDO, British Airways & Standard Chartered have joined forces to launch a first-of-a-kind (FOAK) model to finance carbon removals. 

Each of the four companies represents the four main stakeholders of the global voluntary carbon markets (VCMs): platforms (CUR8), suppliers (UNDO), buyers (British Airways) and financial institutions (Standard Chartered).

And the goal of the unprecedented joint venture is to essentially unlock debt financing for carbon removals, which are currently in a desperate need for rapid development. 

Following COP28, the need for carbon dioxide removal (CDR) has been underlined yet again, as the world sees its importance in limiting rising global temperatures. 

According to the Intergovernmental Panel on Climate Change (IPCC), while emissions reduction efforts and decarbonization are paramount to mitigating the climate crisis, residual CO2 must be removed from the atmosphere at gigaton scale in order to bring about any meaningful change. 

Financial solutions like the one just launched by the 4-party group of UNDO, CUR8, British Airways and Standard Chartered are a large part of what it will take to reach that gigaton scale. 

Relevant: The New IPCC Report Stresses Need For CO2 Capture And CDR

Carbon removals represent an untapped market with extraordinary potential, duly recognized last week by McKinsey in a report that sees it reaching trillions of dollars by 2050. 

Carrie Harris, Director of Sustainability at British Airways, said: “At British Airways, carbon removals form a fundamental part of our strategy to reach net zero emissions and so we are delighted to be a part of this groundbreaking pilot.”

Marta Krupinska, CEO & Co-Founder at CUR8 also commented on the new partnership by saying: “It is clear that rapid technological and scientific innovations require appropriate, novel and abundant financing. We are delighted to be launching this pilot with UNDO, British Airways and Standard Chartered to show that debt financing in addition to venture capital is needed to unlock scalability for carbon removals. We aim to build a bridge to bankability for the most promising carbon removal suppliers who face a $5-50M scale-up financing gap.”

Read more: McKinsey Believes Carbon Removals To Be A Trillion Dollar Market Opportunity

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