Standard Chartered and SEB Partner with Puro.earth to Drive Liquidity and Investment in the Carbon Dioxide Removal Market

The two banks, SEB and Standard Chartered, announced an enlarged partnership with Puro.earth for enhancing liquidity in the CDR market and accelerating the production of CO2 Removal Certificates, or CORCs. The collaboration will result in offtake agreements for high-quality carbon removal credits certified under the Puro Standard, and this therefore is a major step in supporting corporates in their net-zero emission goals and overcoming some of the key challenges in the CDR market. Scaling Carbon Dioxide Removal Certificates One of the major works of the partnership will be the ability to drive market growth in CDR, by increasing the supply of Carbon Dioxide Removal Certificates, or CORCs. CORCs are an essential instrument providing proof of removal of carbon dioxide from the atmosphere, allowing companies to buy and retire them in pursuit of their climate objectives. Standard Chartered and SEB look to drive higher liquidity by improving market access for the certificates, thereby investment in carbon removal technologies. Julien Jacob, Head of Offtake and Investment Solutions at Puro.earth, commented: "It is only with a step change in carbon dioxide removal deployment that net-zero emission targets can be realized. We're very pleased to be partnering with Standard Chartered and SEB, both leaders in enabling sales and investments in the CDR market. The partnership also expects to overcome various key pain points in early-stage carbon removal projects, especially relating to project bankability. So often, projects cannot access funding because the long-term viability and profitability of carbon removal technology are unclear. Using deep networks and investment banking skills, Standard Chartered and SEB hope to unlock new distribution routes for CORCs and sources of funding to get these projects scaled up to financial viability. Offtake agreements play an important role in this stage of market development in terms of funding and demand signaling," Nasdaq's Head of Carbon Markets, as well as Puro.earth's Chairman, Fredrik Ekström said. These offtake agreements can then be able to play a vital role in demonstrating increased confidence in the market and further encourage players to go into the carbon removal space. Investment in Early-Stage Carbon Removal Initiatives The partnership highlights the need for a significant investment in early-stage CDR projects-the core requirement of scaling carbon removal technologies up to requisite levels that meet global climate targets. Standard Chartered and SEB are thus helping to address one major barrier to entry for new CDR projects: access to capital, by focusing on creating a more liquid and transparent market for CORCs. Chris Leeds, head of carbon market development at Standard Chartered, reflects on the investment in carbon removal technologies today to shape a sustainable future: "We need every tool in the toolbox to help accelerate efforts to achieve net zero.". Investment in carbon dioxide removal technology today will scale tomorrow and put the 'net' in net-zero." This speaks to the vision of the partnership: getting investments in carbon removal today to yield large-scale deployment of these technologies in tomorrow. Support to a Stronger Market for Corporations Seeking Net-Zero Solutions This growth is going to firmly drive the supply of CORCs to firms looking to develop their emission reduction. The increase in the number of firms around the world that are coming out to present their climate ambitions, such as the goal of net-zero emissions, means that demand for strong carbon removal solutions is going up. Standard Chartered, SEB and Puro.earth are driving liquidity into the CDR market, thus driving ease in buying and utilization of CORCs by corporations as part of their sustainability strategies. Maximilian Brodin, Commodities Head of SEB added that the progress made by CDRs should be accelerated and clients have the necessary assets to achieve their objectives: "The collaboration with Puro will enable SEB to assist in the process of arming our clients with the tools they need to bring their net-zero promises to life." That is also a sign that financial establishments are slowly realizing that they should begin providing solutions to help companies carry out their environmental commitments while making business expansions. This will be represented in terms of the importance of transparency and access in the CDR market. With increasing depth in the carbon removal market, transparency and accessibility become a greater need. The joint initiative by Standard Chartered, SEB, and Puro.earth reflects important steps for the creation of a more transparent, efficient market for carbon removal credits. By making the purchasing and selling process of CORCs simpler and high-quality, Puro Standard-certified credits available in the market, the collaboration opens scope for bigger corporate involvement in the CDR market. Increased liquidity and increased channels of distribution resulting from the above partnership will also ensure that improved market conditions attract more investors, increasing the number of carbon removal projects initiated. Conclusion The partnership between Standard Chartered, SEB, and Puro.earth represents an important step forward in efforts to scale up carbon dioxide removal technologies while increasing liquidity within the CDR market. This partnership serves to ensure that corporations worldwide can access tools needed to meet their net-zero goals, facilitated by off-take agreements on CORCs and indeed coping with the biggest pain points the early stage projects face. With increasing demand for carbon removal solutions, such a partnership will prove invaluable in pushing the development of a transparent, accessible, and effective CDR market to help further the global fight against climate change and the construction of a more sustainable future.