SAP and Climeworks are joining forces to make net-zero a reality! This blockbuster partnership blends Climeworks’ carbon removal tech with SAP’s enterprise software, offering businesses a seamless way to manage their carbon footprints. With SAP snagging 37,000 tons of carbon removal credits across direct air capture, biochar, and enhanced rock weathering, they’re not just talking sustainability—they’re walking it. Will this deal redefine corporate climate strategies, or face headwinds in a volatile carbon market?

The Powerhouse Partnership

Climeworks, a carbon removal trailblazer, and SAP, an enterprise software giant, are co-creating tools to embed carbon management into business operations. Using SAP’s Sustainability Control Tower and SAP Store, companies can track, manage, and cut emissions via ERP-centric solutions. SAP’s also buying 37,000 tons of high-quality carbon removal credits from Climeworks, covering direct air capture (DAC), biochar, and enhanced rock weathering, tailored to SAP’s needs. Climeworks, in turn, is adopting SAP’s enterprise tools, like S/4HANA Cloud and LeanIX, to scale its operations and plans to lean harder into SAP’s sustainability tech.

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Why It’s a Big Deal?

Carbon removal’s a must for industries with stubborn emissions—think aviation or manufacturing, which spew 30% of global CO2. Climeworks’ portfolio, mixing DAC’s permanent storage with biochar’s soil benefits and weathering’s scalability, could slash 1 million tons yearly at scale, per industry estimates. SAP’s 37,000-ton purchase locks in credits at $200-$1,000 per ton, hedging against market spikes. This deal empowers 90,000 SAP customers to integrate sustainability into their ERP, turning compliance into profit.

Christoph Gebald calls it an “economic opportunity,”.

How It Works?

• Tools: SAP’s Sustainability Control Tower centralizes carbon data, enabling real-time tracking and reporting. Climeworks’ credits integrate into SAP Store for easy purchase.

• Tech Mix: DAC pulls CO2 from air and stores it underground; biochar locks carbon in soil; enhanced weathering uses crushed rocks to trap CO2, boosting farm yields.

• Scale: SAP’s credits offset 37,000 tons, with Climeworks’ Mammoth plant in Iceland targeting 36,000 tons yearly. Climeworks’ SAP tools streamline its global ops.

• Impact: Supports SAP’s net-zero goals, aligned with Science-Based Targets, and fuels new sustainability products for clients.

Sophia Mendelsohn says it’s about “high-integrity” removals, securing capacity while dodging price swings, which hit 20% last year.

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The Challenges

Carbon removal’s pricey—DAC costs $600-$1,000 per ton, and scaling to billions of tons needs $1 trillion globally. Climeworks’ Iceland plants captured just 1,058 tons in three years, raising doubts about delivery. SAP’s bet hinges on Climeworks meeting 37,000 tons, but supply chain snags or tech hiccups could delay credits.

What’s Next?

SAP and Climeworks aim to roll out ERP tools for 10,000 firms, potentially offsetting 10 million tons of CO2. Climeworks’ expansion, backed by SAP’s tech, targets 100,000 tons yearly, with new DAC hubs in the U.S. and Oman. A global carbon market could add $500 billion in credits, but needs clear rules.

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