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ClimeFi and XPRIZE Set Ambitious Target for Companies with Global 1000 CDR Challenge

Written by
ClimeFi
Published on
15 November 2024

ClimeFi, in partnership with XPRIZE, announces the launch of the Global 1000 CDR Challenge at COP29 in Baku, Azerbaijan. This initiative represents a pivotal step forward in addressing the urgent need for scalable carbon removal solutions to combat climate change.

The Global 1000 CDR Challenge calls on the Forbes Global 1000 companies—the world’s largest corporations—to make a significant commitment: purchasing at least 1,000 tonnes of permanent carbon dioxide removal (CDR) in 2025. If realized, this collective target could generate over one million tonnes of new demand for CDR globally within just one year, creating the financial momentum needed to accelerate the development of permanent carbon removal projects.

Why This Matters

Speaking at the announcement, Philip Moss, Chief Investment Officer of ClimeFi highlights: “We need to scale carbon removal rapidly to minimise the worst impacts of 1.5 overshoot by building a market for permanent carbon solutions today. True market transformation hinges on liquidity and accessibility, yet less than 80 companies globally have purchased 1,000 tonnes or more since 2020 despite the need to remove 5 Gt/year by 2035.” Mr. Moss added, ”By providing companies with a simple mechanism to stimulate demand for CDR projects, we hope to lower barriers for companies to engage in this market while building the base of creditworthy offtakes that are required by projects to secure financing.”

How the Challenge Works

The Challenge invites companies ranked among the Forbes Global 1000 to commit to new purchase agreements for at least 1,000 tonnes of permanent CDR by the end of 2025. Participants will be recognized on a dedicated leaderboard at www.global1000challenge.org. Special recognition will also be extended to privately held companies and those within the broader Forbes Global 2000.

In addition to driving demand, the Challenge seeks to demystify common misconceptions surrounding carbon removal transactions, pricing, and accessibility. By providing corporations with a clear pathway to engage in the CDR market, it aims to unlock the liquidity required to secure project financing and ensure long-term scalability.

A Shared Vision for Scaling CDR

"This is not just about setting targets; it's about rapidly scaling the market to ensure that CDR projects can secure the significant financing they require to be truly effective," said Nikki Batchelor, Executive Director of the $100M XPRIZE Carbon Removal competition. “By incentivizing companies through this challenge, we're catalyzing action and laying the foundation for large corporations to access a supply of high-quality carbon removal needed to realize their Net Zero targets.”

While reducing emissions and preserving natural carbon sinks remain essential, the large-scale deployment of carbon removal technologies is critical to meeting climate goals. The Global 1000 CDR Challenge underscores the need for immediate and collective corporate action to address the pressing challenges of market liquidity and scalability.

Looking Ahead

ClimeFi and XPRIZE invite corporations to step forward and join this initiative. By committing to the Global 1000 CDR Challenge, companies can take a meaningful step toward supporting a sustainable future while positioning themselves as leaders in the evolving carbon removal market.

For more information on how to participate, visit www.global1000challenge.org.

Please find our official press release on the following link: PRESS RELEASE