TD Bank has entered into a long-term carbon removal agreement with climate solutions provider Charm Industrial, committing to purchase 44,000 tonnes of durable carbon removal over a ten-year period beginning in 2029. The agreement reflects a growing interest among financial institutions in securing high-integrity removal solutions to address residual emissions that cannot be eliminated through direct reductions alone.

Founded in 2021, Charm Industrial has built its model around biomass-based carbon removal pathways. The company captures atmospheric carbon absorbed by plants, collects agricultural residues or biomass from forest management activities, and converts this material into bio-oil through a pyrolysis process. The resulting bio-oil is then injected into regulated underground wells, where it solidifies and stores carbon on a long-term basis. In 2025, Charm expanded its portfolio to include biochar as an additional removal pathway, broadening the range of durable solutions offered to buyers.

A Portfolio Approach to Carbon Removal

Under the agreement, TD Bank will source carbon removals generated through both Charm’s bio-oil sequestration process and its biochar-based technologies. The structure reflects a portfolio approach to carbon removal, combining multiple pathways to manage durability, scalability, and delivery risk over time.

For TD Bank, the deal signals an emphasis on long-term planning rather than short-term offset purchases. By contracting removals several years in advance, the bank is helping to create forward demand that supports project development and operational scale-up in an emerging sector where early capital certainty is often a constraint.

Read more: Singapore Strengthens Regional Leadership in Nature-Based Carbon with New Blue Carbon and Biomass Programs

Expansion Plans and the Role of Canada

Alongside the offtake announcement, Charm indicated that it plans to accelerate exploration of new operations in Canada. The company cited growing policy support for durable carbon removal, including public investments in innovation, early market development, and an upcoming federal procurement program focused on carbon dioxide removal.

Charm’s leadership highlighted Canada’s potential to align climate outcomes with local economic and environmental benefits. Planned operations could integrate biomass from wildfire management and agricultural residues, while also contributing to remediation efforts such as plugging legacy oil and gas wells. A portion of the credits delivered under the TD agreement is expected to come from these future Canadian projects, linking the offtake directly to domestic deployment.

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Implications for the Carbon Removal Market

The transaction underscores a broader shift in corporate climate strategies toward engineered and nature-based removal solutions with higher durability profiles. As scrutiny around offset quality intensifies, long-term offtake agreements are increasingly seen as a mechanism to support market credibility, enable project financing, and accelerate learning curves for new technologies.

For carbon removal developers, deals like this provide more than revenue visibility. They also signal confidence from large, regulated financial institutions, which can help de-risk further investment and encourage policy engagement. For buyers, the agreement offers a pathway to address hard-to-abate emissions while contributing to the build-out of removal infrastructure that could be critical to long-term net-zero strategies.

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