A record purchase agreement has been signed between carbon dioxide (CO2) removal pioneer Climeworks and risk group Swiss Re to join forces in the effort to scale up carbon removal technology.

According to a recent IPCC report, more measures need to be taken to combat climate change. Climeworks and Swiss Re have responded by committing to a strategic partnership that will see the companies entering the world’s first and largest 10-year carbon removal purchase agreement worth $10m.

With the IPCC’s report stating that the only effective solution for atmospheric CO2 removal being direct air capture (DAC) and storing it underground, the agreement will see the partners work together to generate a rapid scale up of DAC and storage technology.

By providing knowledge and experience in the areas of risk management and risk transfer solutions, Swiss Re can complement Climeworks’ efforts to develop new technology as well as improve its existing carbon removal measures. The two also intend to explore future investment and project opportunities.

Christoph Gebald, co-CEO, co-founder, Climeworks, commented on the partnership, saying, “We are very proud to have established the basis for a unique long-term partnership with the leading risk knowledge company Swiss Re.”

“This is a decisive milestone for the scale-up of Climeworks and the direct air capture industry.”

Climeworks’ Iceland-based partner Carbfix utilises the company’s DAC plants to mix the captured CO2 with water before it pumps the gas underground where it mineralises and becomes permanently stored.

Speaking on the importance of climate change mitigation, Christian Mumenthaler, Group CEO, Swiss Re, stated, “To mitigate the risks of climate change, the world needs to scale-up carbon removal on top of, not instead of, emission reductions.”

He added that the partnership allows both companies to play to their strengths.

The agreement comes before Climeworks is due to launch its new large-scale DAC and storage plant, Orca, in Iceland this September.