Investing in CDR Solutions

Richard Probst

In this video, Richard explains the benefits of adopting a portfolio approach to carbon dioxide removal (CDR), highlighting how diversifying investments across nature-based and engineered solutions maximises climate impact and mitigates risks. He explores why organisations invest in CDR, how the portfolio approach accelerates innovation, and how it aligns with long-term decarbonisation goals. He also provides a step-by-step guide to implementing an effective CDR strategy, from identifying needs to designing tailored portfolios, ensuring compliance, and contributing to the growth of the CDR market for a sustainable future.

Regulation and Initiatives

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Investing in CDR Solutions

9 mins 41 secs

Key learning objectives:

Understand the benefits of a portfolio approach to CDR, including risk mitigation and innovation acceleration
Outline the strategic steps involved in implementing a CDR portfolio, from identifying needs to monitoring solutions
Understand how diversification in CDR investments aligns with the like-for-like principle and supports long-term decarbonisation goals
Understand the role of buyers and intermediaries in scaling the CDR market through strategic investments

Overview:

A portfolio approach to carbon dioxide removal enables organisations to maximise climate impact and minimise risks by diversifying investments across nature-based and engineered solutions. This approach accelerates innovation, balances cost with permanence, and aligns with long-term decarbonisation goals. Implementing a CDR portfolio involves identifying needs, evaluating solutions, and designing a customised strategy. Investing strategically in diverse CDR solutions allows organisations to support the growth of the CDR market, ensure compliance with evolving standards, and effectively contribute to achieving net zero and a sustainable future.

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Summary

Who are the main buyers of carbon dioxide removal (CDR) solutions, and why do they invest?

CDR buyers include companies, governments, and environmentally conscious individuals committed to addressing emissions that cannot be reduced directly. Organisations with net-zero commitments often invest in high-quality CDR credits to complement their emission reduction efforts. By addressing hard-to-abate emissions, these buyers help foster the growth of the CDR market, support innovation, and ensure progress toward long-term sustainability and decarbonisation goals.

What is the portfolio approach to CDR, and why is it beneficial?

The portfolio approach diversifies CDR investments across multiple solutions, mitigating risks and accelerating innovation. Like a financial portfolio, it balances nature-based and engineered solutions to maximise climate impact. Diversification fosters innovation, scales multiple approaches simultaneously, and aligns with organisational goals, such as ESG commitments. Dynamic portfolios also allow organisations to adapt as the CDR market evolves, ensuring compliance and supporting long-term decarbonisation strategies.

How can organisations implement a CDR strategy effectively?

Effective CDR implementation requires a structured approach. Organisations must identify their CDR needs, evaluate technologies based on attributes like permanence and price, and design tailored portfolios aligned with net zero targets. This process includes collaborating with experts, setting volume trajectories, and ensuring compliance with international standards. A clear strategy, supported by third-party monitoring and reporting, ensures long-term success in meeting decarbonisation goals.

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Richard Probst

Richard Probst, an economist and lead of Climeworks' Carbon Dioxide Removal Advisory team, assists organisations in developing carbon dioxide removal strategies to achieve net zero targets. He works with sustainability leaders to develop long-term investment strategies for carbon removal solutions, removing emissions that organisations cannot reduce, even after fully utilising all carbon reduction levers. Richard is passionate about the rapidly evolving field and eager to explore carbon dioxide removal solutions with organisations. He began his career in management consulting at the Boston Consulting Group.

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