Climeworks Solutions Signs 10-Year Carbon Removal Agreement with TD Bank Spanning Multiple North American Pathways

Climeworks Solutions has signed a 10-year agreement to supply high-quality carbon removal credits to Toronto-Dominion Bank, the sixth largest bank in North America, marking TD's first engagement with direct air capture technology and Climeworks Solutions' first Canadian financial services customer. The managed portfolio will span multiple carbon removal pathways and technologies across North America, including enhanced rock weathering, biochar and bioenergy with carbon capture and storage, alongside future direct air capture credits from one of Climeworks' planned North American facilities. Climeworks Solutions will be responsible for project sourcing, due diligence and ongoing portfolio management across the full duration of the agreement, having delivered 100 percent delivery rates across its portfolios in 2025.

 

The Portfolio Approach and Technology Diversity

 

The multi-pathway portfolio structure is designed to deliver durable carbon removal with carbon stored for long periods, combining near-term scalable technologies including enhanced rock weathering and biochar with longer-duration engineered removal through BECCS and ultimately direct air capture. This diversified approach mitigates the risk associated with any single technology or methodology while providing TD with flexibility as carbon market standards and project pipelines evolve over the decade-long agreement term. Susan Thompson, Managing Director of Sustainable Finance and Advisory at TD Securities, said the portfolio approach helps mitigate risk while providing organisations with flexible options in their carbon management strategies as standards and methodologies continue to develop.

The inclusion of future direct air capture credits from a Climeworks North American facility adds a forward-looking commitment to the portfolio that connects the 10-year agreement to the company's active expansion into Canada. Climeworks has opened its corporate headquarters in Calgary and will focus in coming months on cold-weather testing of its direct air capture technology, a key milestone ahead of building a commercial-scale plant. The development of Canadian direct air capture infrastructure alongside an established Canadian bank customer creates a mutually reinforcing commercial relationship that supports both the technology deployment pathway and the bank's carbon management strategy.

 

Read more: Shein's $100 Million Everlane Acquisition Puts Fast Fashion's Sustainability Claims Under New Scrutiny

 

TD Bank's Carbon Management Strategy

 

Nicole Vadori, Vice-President Global Sustainability at TD Bank, said being the first Canadian bank to support Climeworks' direct air capture technology is well aligned with the bank's strategy of supporting a broad set of innovative clean technologies in North America and that TD is looking forward to Climeworks' innovations in Alberta. The framing positions the agreement as part of TD's clean technology support strategy rather than solely as a carbon offsetting exercise, reflecting the growing sophistication with which institutional buyers are approaching carbon removal procurement. Adrian Siegrist, Chief Commercial Officer at Climeworks, said Climeworks Solutions will provide a mix of North American-sourced high-quality removals from regional projects alongside future direct air capture credits, supporting TD in addressing its residual emissions.

The 10-year duration of the agreement provides both parties with long-term certainty that is commercially important for TD's sustainability planning and financially essential for Climeworks' ability to invest in and develop North American project and facility infrastructure. Long-term offtake commitments from creditworthy institutional buyers are increasingly recognised as a prerequisite for the capital-intensive direct air capture sector to attract the project finance needed for commercial-scale plant construction. TD's participation as a committed long-term buyer establishes an important anchor demand signal for the Canadian direct air capture market.

 

Explore OneStop ESG Marketplace: Carbon capture

 

Outlook for Managed Carbon Removal Portfolios

 

The Climeworks Solutions and TD Bank agreement reflects a maturing approach to corporate carbon removal procurement in which managed portfolios spanning multiple technologies and pathways are replacing single-technology or single-project commitments. This portfolio model reduces buyer exposure to technology or project-specific risks while maintaining access to the highest-quality permanent removal credits as they become available at scale. The 10-year timeframe allows the portfolio to evolve alongside the carbon market as methodologies are refined, new project types gain credibility and direct air capture costs decline with scale.

Whether Climeworks can successfully advance its Canadian direct air capture programme from cold-weather testing through to commercial-scale plant construction within the agreement period will be a critical test of the technical and commercial ambitions underpinning the TD partnership. Sustained progress would establish Alberta as a pioneer location for commercial direct air capture in North America and demonstrate that Canadian institutions and technology developers can collaborate to build the carbon removal infrastructure the country's net-zero commitments require. The convergence of financial institution demand for high-integrity carbon removal, government support for clean technology innovation and Climeworks' established track record creates a favourable environment for the Canadian direct air capture programme to advance.

 

 

Source: Climeworks