Carbo Culture joins the NextGen CDR facility portfolio
In March 2023, the IPCC Synthesis Report underscored that global rates of CDR deployment are “far below” those necessary to limit global warming to 1.5°C. However, the market has not yet scaled to a level close to what the IPCC deems as necessary for a safe and sustainable future.
NextGen CDR Facility (NextGen) — a joint venture between global climate project developer and solutions provider, South Pole, and Japanese conglomerate Mitsubishi Corporation — backed by founding buyers Boston Consulting Group, LGT, Mitsui O.S.K. Lines, Swiss Re, and UBS — has announced the advance purchase of 193,125 tonnes of CDRs from carbon removal projects that will constitute the world’s largest diversified portfolio of CDRs.
The advance purchase of close to 200K tonnes of CDRs from three projects, including Carbo Culture’s industry-leading permanence biochar based carbon credits, demonstrates tangible corporate interest for various CDR technologies that offer long-term removal of CO2. The announcement marks a major milestone in building a scalable market for durable stored CDRs, representing 25% of all purchases to date according to industry data source CDR.FYI.
Creditworthy CDR purchases from large projects providing long-term storage will remove significant volumes of atmospheric and biogenic CO2 in the next few years, while helping companies to secure the financing needed to ensure these projects can be built and scaled up to the highest standards. These projects represent NextGen’s first advance purchase of a targeted one million CDRs by 2025 that can be realised by 2030 to deliver significant climate impact.
NextGen’s portfolio would establish the market best practice for project standard certification. All projects will be certified and verified under standards endorsed by the International Carbon Reduction and Offset Alliance (ICROA) to ensure an independent third-party assurance that the projects are of the highest environmental integrity and benefit local communities. Strong monitoring, reporting and verification (MRV) standards in the carbon removal industry are vital to ensure that removals approaches only incentivize the creation of high-quality CDR that is additional, measurable and highly durable.
“A few years ago, very few people were buying carbon removal. This is a clear market signal that high quality removals are here to stay. NextGen’s commitment will be catalytic for the industry,” says Henrietta Moon, CEO of Carbo Culture.
“The world is waking up to the need of radical emission reductions and carbon removal today to reach net zero. The NextGen facility led by South Pole and Mitsubishi is a best practice example, and shows the catalytic effect of bankable offtake contracts in financing this critically needed infrastructure.”
