CUR8 and the Business Case for Carbon Removal

In recent years, the narrative surrounding carbon removals has shifted dramatically. 

Once viewed with scepticism, carbon dioxide removal (CDR) is now recognised as essential for achieving net-zero emissions and a critical tool in the fight against climate change.

How does it work? A process that does what it says on the tin, carbon removal extracts carbon dioxide (CO₂) from the atmosphere. It is then stored long-term in geological, terrestrial or ocean reservoirs — or in products. 

This procedure aims to slow, limit or reverse climate change by reducing atmospheric CO₂ levels, complimenting — but not replacing — emissions reduction efforts.

There is an urgent need for a significant transformation in global policies to enhance CO₂ removal initiatives and meet critical climate targets. 

The study says that achieving the necessary scale of CO₂  removal — amounting to billions of tonnes — is crucial for mitigating climate change. 

As businesses ramp up their climate action plans, the focus has moved from questioning the need for CDR to exploring effective implementation strategies. 

Major corporations like Microsoft, Google and British Airways have made significant investments in carbon removal credits, showing a growing consensus on their strategic value. 

The value of carbon removal

Marta Krupinska, Co-Founder and CEO of CUR8, says: “For way too long, the question on every climate-conscious CFO's mind was: ‘Do we truly need carbon removals?’

“While the science on carbon emissions and their effect on global warming was undisputed, seeing the strategic value of carbon removal remained elusive for corporate leaders.”

CUR8 specialises in sourcing high-quality durable carbon removal from around the world.

Former Head of Google for Startups UK Marta says that as businesses ramped up their climate action plans, questions around carbon removals’ effectiveness — or whether they are merely a distraction lingered.

“Wasn’t it just another form of carbon offset, akin to forest protection or renewable cookstove initiatives? And critically, was there a sound business case for it?,” she asks.

“Those doubts have gradually given way to clarity. Today, the need for carbon removal is no longer a matter of speculation; it’s seen as a necessity.”

With the UN Intergovernmental Panel on Climate Change (IPCC) calling CDR “unavoidable”, Marta believes that although decarbonisation alone will not be enough to reach net zero — given the volume of historic emissions still in the atmosphere — carbon removal represents a unique solution, not simply offsetting emissions but taking carbon dioxide directly out of the air. 

“It’s an essential mechanism for dealing with residual emissions in a net-zero world,” she says.

Carbon removals: No longer a question of “why”, but “how”

There are many real-world examples that show companies are actively seeking scalable, high-quality CDR solutions.

The market is growing with it — in 2023, the CDR market had a value of US$638.73m, a figure expected to reach US$2.5bn by 2033.

Billions of dollars have already been invested in carbon removal initiatives. 

For example, July saw Microsoft make headlines by securing the largest CDR contract to date, purchasing 500,000 tonnes of carbon removal credits from 1PointFive. Following this, Google aimed for long-term impact with its September agreement with Holocene to acquire 100,000 tonnes of removals through Direct Air Capture (DAC).

As well as this, British Airways also made news by executing the largest single CDR purchase by a UK company, investing in 33,000 tonnes of carbon removal credits. The momentum — particularly in the hard-to-abate sector of aviation — is what Marta dubs “unmistakable”, and the race to secure credits is intensifying.

“The initial hesitation around carbon removals was not unwarranted,” she explains. “For starters, carbon removal can be confused with carbon avoidance or protection credits, known as carbon offsets — and these are materially different. 

“Unlike offsets, carbon removal credits represent a ton of carbon dioxide equivalent being removed from the atmosphere, and leading rule setting bodies like SBTi (Science Based Targets Initiative) require carbon removals to neutralise residual emissions in order to claim net zero. 

“Additionally, carbon removals are on average 20+ times more expensive than offsets — with balanced portfolios costing around US$200 per tonne.”

The ‘bridge to bankability’

A significant hurdle for this burgeoning trillion-dollar industry was known as the ‘bridge to bankability’.

Numerous carbon removal startups, still in their development phases, faced difficulties in obtaining affordable scale-up capital. 

With limited funding options beyond early-stage venture capital and grants, these companies confronted a formidable challenge in achieving commercial viability and securing sustainable, long-term financing.

However, driven by growing client demand, innovative financing mechanisms have emerged. These new tools allow corporations to access high-quality carbon credits without upfront payments, while simultaneously providing project developers with much-needed capital.

As a result, these financial innovations have revolutionised investment dynamics and established a foundation for substantial market growth in the carbon removal sector.

Marta says: “The recent deals by Microsoft, Google and British Airways are not outliers; they reflect a broader shift. 

“Meta, for instance, announced it would procure US$35m worth of high-quality carbon removal credits in response to the US Department of Energy’s Carbon Dioxide Removal Purchasing Challenge, introduced this past March. 

“Sectors like tech and aviation are facing real decarbonisation challenges and leaders in the space are competing for access to highest quality carbon removal projects, locking in preferential prices for early movers which should save them millions.”

On top of this, regulatory pressures are intensifying. 

The Oxford Offsetting Principles state that companies can only claim net-zero status after neutralising residual emissions through CDR, a position that may evolve into formal regulatory policy in the coming years. 

Delaying action, Marta believes, could prove costly — not only in financial terms but also in terms of corporate reputation.

She also expects the demand for carbon removal to increase significantly, initially driven by large corporations and subsequently spreading to sectors such as sports and events. 

This trend is occurring at a critical juncture. The consequences of inaction are severe, with climate change manifesting in extreme weather events and posing threats to communities globally. 

To address the magnitude of the climate challenge, both engineered and nature-based solutions will play crucial roles in the overall strategy.

“Carbon removals are no longer a nice-to-have, they’re a necessity,” Marta concludes. 

“For businesses, they represent not just an opportunity but an essential pathway to a sustainable tomorrow, and the CEOs and CFOs with the brightest future are the ones who recognise this first.”

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