Why the Climate Transformation fund supports innovative CDR companies

Our theory of change for CDR investments

Carbon dioxide removal (CDR) is crucial to achieving net zero and stabilising global temperatures, but it’s still in its early stages. Currently, only a few hundred thousand tonnes are removed each year, but billions of tonnes will be needed annually to meet global climate targets. We do not yet know which CDR technologies will be the best, most affordable, sustainable, or scalable. Finding this out is the key task of the 2020s, alongside building an industry capable of gigatonne-scale operations.

“We invest in CDR to build a diverse and robust ecosystem of high-quality solutions that can scale in the decades ahead, not to maximise the number of cheap tonnes removed today.” - Robert Höglund, Fund Manager

Our approach therefore prioritises diversity in CDR methods, recognising that no single solution will scale to meet global needs on its own. As early adopters, we do not only support technology growth but also help solve technical challenges through practical application. This "get more shots on target" strategy expands the range of technologies, increasing the likelihood of breakthroughs in finding scalable and sustainable solutions.

While our strategy does not aim to dominate the market by volume, our impact is defined by the diversity of methods, strategic timing of purchases, and catalytic support that positions us as a key player in shaping the future of carbon removal. Through this investment strategy, we aim to prevent promising technologies from going untested and avoid locking in suboptimal solutions. 

$6,6 million in Pre-Purchases from 27 companies in 15 countries. 

Since 2021 we have invested in a total of 27 companies in 15 countries, demonstrating our global commitment to early-stage carbon removal. Our funding has been provided at a pivotal stage for these companies. In around 50% of the pre-purchases we’ve made, we have been the first buyer, providing critical support before their business models are proven bankable.

Projects per CDR method.

Reflecting on our overall portfolio, the diversity of carbon removal methods supported stand out, ranging from direct air capture (DAC), biochar, geochemical solutions and ocean-based CO₂ capture. Within each method, our portfolio highlights the distinct innovations. The companies we supported use nine different carbon removal methods, emphasising both established and pioneering technologies. For example, within DAC, Heirloom accelerates natural limestone processes, Octavia Carbon leverages geothermal energy in Kenya, and TerraFixing targets cold climates with unique adsorption technology. This breadth underscores our commitment to exploring multiple pathways, ensuring we identify scalable, cost-effective solutions that can operate across diverse geographies and economic contexts.

A total of over 32,000 tonnes purchased since 2021, almost all tonnes are delivered before 2027

The CTF has facilitated purchases of over 32,000 tonnes of carbon removal with delivery timelines from 2022 to 2033, reflecting the varied readiness levels of supported technologies and our strategy of early commitments to drive innovation. While we may not be the largest volume buyers, we strive to lead in the number of transactions, with a focus on pre-purchases.

Supported companies are reaching key funding milestones and earning prestigous recognitions

Our investments have been pivotal in driving market validation for emerging carbon removal technologies, and we are excited to see many of our portfolio companies reaching key funding milestones and earning prestigious recognitions. Within a few years, previously supported organisations like Heirloom and The Carbon Removers (prev. Carbon Capture Scotland) have secured vast government contracts, companies such as InterEarth, MashMakes and Octavia Carbon have closed large offtake agreements, and a majority of the companies have been able to raise investment rounds. Additionally, innovators like Takachar and Silicate have earned recognition such as the XPRIZE Carbon Removal Milestone award. These achievements highlight the catalytic role of early-stage investments in accelerating market acceptance and scaling innovative carbon removal approaches.

The price we paid per tonne ranges from $50 to $2,050, showcasing the broad spectrum of technological maturity and market readiness.

The pricing of our purchases, ranging from $50 to $2,050 per tonne, reflects the evolving maturity of the market and underscores the importance of continued investment to drive costs down. We are encouraged by early signs of price reductions, such as Heirloom’s 50% cost drop since our initial purchase, illustrating how early support can make carbon removal more scalable and affordable over time. Footnote: Our approach to supporting Carbon removal has been validated by Giving Green, which recommends the CDR part of the CTF.