Is Climeworks the ‘Next Big Thing’ in Climate Technology?
By James Darley
July 8, 2025
As the world grapples with the urgent need to combat climate change, carbon removal technologies have come to the forefront as essential tools in limiting global warming to 1.5°C, a target emphasized by the Intergovernmental Panel on Climate Change (IPCC). Among the pioneers in this field is Climeworks, a Swiss company making headlines as one of the fastest-growing firms delivering scalable carbon removal solutions. With funding surpassing US$1 billion, Climeworks is emerging as a key partner for top global corporations and governments aiming to meet ambitious sustainability goals.
Advancing Direct Air Capture (DAC) Technology
Founded in 2009 by Christoph Gebald and Jan Wurzbacher—two engineers who began extracting CO₂ from ambient air in laboratory conditions at ETH Zurich—Climeworks has made significant strides in developing and commercializing direct air capture (DAC) technology. By 2014, the company had launched its first small-scale DAC plant. Since then, it has grown rapidly, combining engineered solutions with nature-based approaches to form a comprehensive carbon removal portfolio.
Today, Climeworks stands out for its state-of-the-art DAC plants. In 2021, it inaugurated Orca in Iceland, the world’s first operational DAC and carbon storage facility. Two years later, Climeworks opened Mammoth, a plant roughly ten times larger than Orca, also located in Iceland. Looking ahead, the company is constructing Cypress, its first commercial DAC and storage plant in the United States. This new facility aims to expand Climeworks’ carbon removal capacity significantly and bolster its reach into crucial North American markets.
Bridging Innovation with Sustainability
Climeworks’ co-CEO Christoph Gebald highlights the company’s hybrid business model that balances generating immediate cash flow with building long-term demand. “Direct air capture has gone from experiment to essential – and we’re focused on scaling it by driving down costs and pushing innovation,” Gebald says. He further emphasizes the significance of crossing the US$1 billion equity financing threshold, calling it proof that carbon removal technology is not only viable but imperative for the future.
In addition to DAC, Climeworks employs complementary nature-based carbon removal methods such as reforestation, biochar production, and mangrove restoration. This holistic approach addresses a variety of carbon sources and supports environmental co-benefits, ensuring their carbon removal efforts have a broad and lasting impact.
Commitment to Quality and Credibility
Given the emerging market for carbon removal, ensuring the quality and integrity of these solutions is paramount. Climeworks has developed a rigorous due diligence framework to vet carbon removal projects across trust, impact, and risk criteria.
- Trust factors include measurability, comprehensive carbon accounting, confirmation that removals would not otherwise have occurred, and third-party certifications.
- Impact factors cover permanence, social and environmental co-benefits, scalability, availability, and affordability.
- Risk assessment considers potential issues such as storage reversal, leakage or displacement of emissions, unintended social or ecological harms, and execution risks.
This careful evaluation process provides confidence to corporate clients and investors that Climeworks’ removals deliver genuine and lasting climate benefits.
Trusted by Leading Global Corporations
Major companies are already integrating Climeworks’ technologies into their sustainability strategies. For instance, SAP collaborates with Climeworks to secure carbon credits that offset emissions that cannot be eliminated directly. Sophia Mendelsohn, SAP’s Chief Sustainability & Commercial Officer, underscores the partnership’s value: “Investing in quality carbon removals addresses emissions we can’t eliminate directly… This investment also strengthens SAP economically by enabling the development of new products that meet evolving customer and regulatory expectations.”
Meanwhile, TikTok has procured more than 4,600 tonnes of carbon removal services through Climeworks’ direct air capture, biochar, and reforestation programs as part of its commitment to achieve carbon neutrality by 2030. Ian Gill, TikTok’s Global Head of Sustainability, states, “Climeworks provided a solution that meets our highest standards and aligns perfectly with our sustainability strategy.”
Other prominent companies working with Climeworks include Morgan Stanley and British Airways, reflecting the growing market confidence in carbon removal as a critical component of corporate climate action.
The Road Ahead for Carbon Removal
With climate targets becoming increasingly urgent, carbon removal technologies like those offered by Climeworks are gaining recognition as indispensable. The company’s success in raising over US$1 billion and its expanding network of high-profile clients underscores a broader shift: carbon removal is transitioning from an experimental niche to an integral part of the global climate solution.
As Climeworks continues to scale its operations through new facilities such as Cypress, reduce costs, and drive innovation, it is positioning itself at the forefront of what could become the next big wave in climate technology.
For companies, governments, and investors looking for credible pathways to net zero, Climeworks offers a tangible, scalable, and forward-looking solution to complement emissions reductions worldwide.
Tags: Sustainability, Carbon Removal, Direct Air Capture, Climate Technology, ESG, Corporate Climate Action
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This article is part of Technology Magazine’s ongoing coverage of cutting-edge climate technology and sustainable innovation.
