Key takeaways:
Schneider Electric and Climeworks join forces to remove 31,000 tons of CO2 from the atmosphere by 2039
The multi-year offtake agreement is Schneider Electric’s first purchase of high-durability carbon removal toward its net-zero commitments
The companies are collaborating on technology solutions to accelerate the cost-reduction trajectory of Direct Air Capture
Schneider Electric, the global leader in the digital transformation of energy management and automation, and Climeworks, a global leader in carbon removal, announced today a major agreement to remove 31,000 tons of carbon dioxide from the atmosphere by 2039.
This represents Schneider Electric’s first purchase of high-durability carbon removal and Climeworks’ largest-ever portfolio agreement to date.
On behalf of Schneider Electric, Climeworks will remove 31,000 tons of CO2 through three high-durability solutions: Direct Air Capture and Storage, Bioenergy with Carbon Capture and Storage, and Enhanced Rock Weathering. Each of these solutions can store CO2 for thousands of years.
This landmark agreement complements Schneider Electric’s emissions reduction efforts. The company is committed to becoming net zero across its entire value chain by 2050 and achieving “net-zero ready” operations, including a 90% reduction of CO2 emissions for Scope 1 and 2, by 2030 (from 2017 baseline). The carbon removal credits issued from these projects will neutralize a portion of the estimated residual emissions once the company achieves this target. By securing access to high-durability carbon removal today, Schneider Electric is addressing future neutralization needs while pursuing aggressive emissions reductions, and supporting the scale-up of an industry crucial for achieving net zero.
“Both carbon removal and carbon reduction are fundamental to achieving our climate goals, as well as those of the planet. The move into durable carbon removal that we’re making today complements our continuous efforts on accelerating emissions reductions, and our existing investments in nature-based carbon removal. Here’s an emerging industry, where early engagement catalyzes the scale-up of a wide range of technologies and supports the path for Schneider Electric and others in the future. In Climeworks, we have found a partner with unparalleled history and know-how in the carbon removal industry, showing time and again what’s possible,” says Esther Finidori, Chief Sustainability Officer of Schneider Electric. “This agreement represents an important step in diversifying our carbon removal portfolio with high-durability solutions and adds to our carbon removal capabilities as we prepare for the journey to 2050.”
Scaling both technology-based and nature-based carbon removal solutions
In August 2022, Schneider Electric was one of the first companies to see its Greenhouse Gas (GHG) net-zero targets by 2050 validated by the Science Based Targets initiative’s (SBTi) Corporate Net-Zero Standard. This standard requires companies to reduce emissions by at least 90 percent and neutralize any residual emissions with high-quality carbon removal. The evolution of the Corporate Net-Zero Standard over the coming year will likely set mandatory milestones for carbon removal on the path to net zero. This landmark agreement with Climeworks represents an important step in the gradual scale-up of high-durability carbon removal that is critical for achieving Schneider Electric’s and the world’s net-zero targets.
To meet global climate goals, both technology-based and nature-based carbon removal solutions must scale significantly. They deliver wide social, economic, and environmental benefits alongside carbon removal. As part of its comprehensive strategy, Schneider Electric will continue to scale investments in nature-based carbon removals through the Livelihoods Carbon Fund and its subsidiary EcoAct – a recognized leader in supporting carbon credit advisory, sourcing, and project development that supports companies worldwide in achieving their climate goals. Christoph Gebald, co-CEO and co-founder of Climeworks says: “This agreement marks a milestone for Climeworks. Schneider Electric is nothing short of an institution, and we are proud to provide them with the most durable carbon removal available. Demand for solutions that can store CO2 permanently will only grow, making early access essential for forward-looking companies. Our collaboration will not only help to further accelerate the cost-reduction trajectory of Direct Air Capture, but also demonstrates that climate action and economic foresight go hand in hand—and carbon removal is where they meet.”
Long-term commitments for large-scale change
Carbon removal solutions must grow into large-scale infrastructure projects to remove billions of tons of CO2. Building these projects to capture and store CO2 will require years. Long-term commitments from companies like Schneider Electric are indispensable to demonstrate enduring demand to project developers, investors, and the growing supply chain.
The three solutions in Schneider Electric’s portfolio offer promising pathways to scale by 2050, with distinct areas where they need to mature further. For Bioenergy with Carbon Capture and Storage and Direct Air Capture and Storage, securing the necessary funding to build the CAPEX-intensive infrastructure is key. Climeworks is focused on building the world’s lowest-cost Direct Air Capture technology to make carbon removal a reality at scale. The two companies are collaborating on technology solutions aimed at enhancing energy efficiency and supporting the cost-reduction trajectory of Direct Air Capture. For Enhanced Rock Weathering, refining the monitoring, reporting, and verification process is a priority. Streamlined through a single contract with Climeworks, Schneider Electric is diversifying its impact across these three solutions.
Climeworks works closely with its suppliers, leveraging years of experience as a project developer, securing volume reserves, and aligning them with demand from buyers, while striving to minimize environmental impact throughout the carbon removal lifecycle. The company developed a rigorous quality assessment framework to identify the highest-quality carbon removal solutions according to trust, impact, and risk criteria, and only partners with third-party certified suppliers.