Climate Insider Brief:
- ClimeFi and XPRIZE launched the “Global 1000 CDR Challenge” at the UN Climate Change Conference, urging the world’s largest 1,000 companies to sign purchase agreements for at least 1,000 tonnes of permanent carbon dioxide removal (CDR) in 2025.
- The initiative aims to create over one million metric tons of global demand for CDR solutions within a year, tackling misconceptions about costs and accessibility while promoting market liquidity.
- A leaderboard will recognize companies meeting or exceeding the challenge, encouraging participation and boosting investments in scalable carbon removal technologies critical for achieving Net Zero goals.
A bold initiative to drive the adoption of carbon removal solutions took center stage at the UN Climate Change Conference in Baku, Azerbaijan. ClimeFi, in partnership with XPRIZE, unveiled the “Global 1000 CDR Challenge,” urging the world’s largest corporations to take immediate action in tackling climate change.
The challenge calls on the 1,000 largest global companies to sign purchase agreements for at least 1,000 tonnes of permanent carbon dioxide removal (CDR) in 2025. If successful, this campaign could generate over one million metric tons of demand for CDR solutions worldwide within a year—a critical boost for this nascent industry.
Accelerating CDR Market Growth
The “Global 1000 CDR Challenge” isn’t just about raising awareness; it’s a call to action designed to catalyze demand for permanent carbon solutions and address key market barriers. Participating companies will be featured on a leaderboard tracking their commitments, recognizing those that secure purchase agreements exceeding 1,000 tonnes in 2025.
“This is not just about setting targets; it’s about rapidly scaling the market to ensure that CDR projects can secure the significant financing they require to be truly effective,” said Nikki Batchelor, Executive Director of the $100M XPRIZE Carbon Removal competition.
The program also aims to dispel misconceptions about the feasibility and costs of CDR transactions while offering recognition for privately held companies and smaller players on the Forbes Global 2000 list.
Transforming a Nascent Industry
Philip Moss, Chief Investment Officer of ClimeFi, emphasized the urgency: “We need to scale carbon removal rapidly to minimize the worst impacts of 1.5°C overshoot by building a market for permanent carbon solutions today. True market transformation hinges on liquidity and accessibility, yet less than 80 companies globally have purchased 1,000 tonnes or more since 2020 despite the need to remove 5 Gt/year by 2035.”
The initiative builds on a shared mission between ClimeFi and XPRIZE to address liquidity and accessibility issues within the CDR market. By incentivizing commitments from corporate giants, the challenge seeks to create a much-needed funding pipeline for scalable carbon removal technologies.
Industry Leaders Already Signing On
Notably, several companies have already pledged to meet the challenge in 2025, signaling their commitment to Net Zero targets. The leaderboard will spotlight their achievements, aiming to inspire further participation and set a benchmark for corporate climate action.
By tackling the twin challenges of demand and investment, the Global 1000 CDR Challenge could serve as a model for how public-private collaboration can fast-track the adoption of critical climate solutions.
Climate Insider Notes
- What It Is: A challenge targeting the Forbes Global 1000 to sign new agreements for 1,000 tonnes of CDR in 2025, creating 1M metric tons of global demand.
- Why It Matters: Boosts liquidity and addresses misconceptions in the CDR market, paving the way for scalable solutions.
- Key Players: ClimeFi, XPRIZE, and industry leaders already committing to the challenge.
- Impact Goal: Building momentum toward the 5 Gt/year carbon removal target needed by 2035.
Source: Carbon Herald
Featured Image: Credit: ClimeFi + XPrize
