Direct air capture (DAC) specialist Climeworks has closed a deal with private banking group LGT, which will see Climeworks removing 9,000 tonnes of carbon dioxide (CO2) per year for ten years – marking the largest ever DAC agreement signed by a bank.

With this year’s COP26 event delineating the requirements of the global financial sector to help drive carbon removal and boost net zero targets through investment and delivering its own net zero climate targets, the deal could act as a steppingstone for more private sector involvement. 

Alok Sharma, President, COP26, commented on this requirement, stating that to ‘keep 1.5C alive’, the trillions required in private investment to create a net zero future must be unleashed. 

DAC allows for the removal of CO2 from the air and is regarded as the only available solution that is able to reduce atmospheric concentration of the gas in a scalable manner. 

The use of Climeworks’ technology reflects LGT’s pledge to reduce its CO2 emissions to net zero by 2030. 

“We have to try in all areas and with all means to improve our CO2 balance in order not to lose the fight against climate change,” said S.D. Prinz Max von und zu Liechtenstein, Chairman, LGT. 

“For LGT, supporting innovative companies with promising technologies is an elementary component in the fight against climate change.” 

The agreement sees LGT join companies such as Stripe, Klarna, and Square, Inc, which have all purchased Climeworks’ carbon capture services.