With latest Climeworks deal, carbon removal gets risky — in a good way
Risk management firm Swiss Re made a deal with Climeworks last week to purchase $10M worth of direct air capture over ten years. With groups like Stripe and Shopify now spending millions per year on carbon removal, the biggest news here is less the strict dollar value than what the deal suggests about how businesses might manage climate risk in the future. As one of the world’s largest reinsurance companies, Swiss Re’s interest in carbon removal signals deeper concern from the insurance industry about the mounting costs of climate change. Under this new paradigm, insurance premiums could become a powerful tool for encouraging companies to adopt climate-friendly practices and further accelerate the development of carbon removal solutions.
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