Deep Sky has signed a ten-year carbon removal agreement with TD Bank Group under which the Canadian financial institution will purchase more than 18,000 verified direct air capture (DAC) carbon removal credits.
The deal represents another milestone for Canada’s emerging carbon removal sector and highlights growing corporate demand for engineered, permanent carbon dioxide removal solutions.
The agreement provides TD with access to carbon removal credits generated from Deep Sky’s Canadian direct air capture facilities over the next decade.
While financial terms were not disclosed, the partnership demonstrates increasing confidence in long-term carbon removal procurement as companies develop strategies to address emissions that remain after conventional decarbonization efforts.
For Deep Sky, the agreement further strengthens its position as a developer of carbon removal infrastructure in Canada and follows other recently announced carbon credit purchase agreements with major international organizations.
Supporting long-term carbon removal infrastructure in Canada
TD has reported a 29% reduction in its Scope 1 and Scope 2 emissions compared with its 2019 baseline and has stated that it intends to continue reducing operational emissions wherever possible.
The bank views carbon dioxide removal as a complementary tool for addressing residual emissions that cannot be eliminated through efficiency improvements or renewable energy adoption alone.
Under the agreement, TD will receive carbon removal credits generated through direct air capture technologies that remove CO2 directly from the atmosphere and permanently store it.
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The credits will be verified through an independent third-party registry, providing assurance regarding the durability and integrity of the removals.
The partnership also reflects a broader trend among financial institutions to support the development of carbon removal markets. By committing to long-term purchases, organizations can help provide the revenue certainty needed to finance and scale emerging carbon removal infrastructure.
The announcement comes as interest in direct air capture continues to grow globally, with governments, corporations and investors increasingly viewing engineered carbon removal as an important component of long-term net-zero strategies.
Read more: Deep Sky Enters DAC-Focused Strategic Partnership With ENGIE
