Climeworks Solutions, a global provider of carbon dioxide removal portfolios, has signed a ten-year agreement with Toronto-Dominion Bank to supply high-quality carbon removal credits. Under the terms of this decade-long contract, Climeworks Solutions will deliver a diversified, managed portfolio of carbon removal credits to the financial institution. This agreement represents a notable milestone as Toronto-Dominion Bank becomes the first Canadian financial services customer for Climeworks Solutions. The contract spans multiple regional carbon removal pathways across North America, including biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More, enhanced rock weathering, and bioenergy with carbon capture and storage, as well as future engineered direct air capture credits from planned facilities in Canada.

A primary challenge addressed by this agreement is the substantial delivery and methodology risk inherent in the nascent carbon removal market. Because carbon market standards, verification protocols, and baseline methodologies continue to evolve rapidly, corporate buyers face extreme difficulty when procuring high-integrity credits from individual projects. Institutional buyers must address their hard-to-abate residual emissions while avoiding reliance on a single technology pathway that may suffer from supply constraints or regulatory changes. Furthermore, the overall supply of highly durable, long-term carbon sequestration remains limited, creating procurement friction for large corporations seeking long-term demand visibility and risk mitigation.

To resolve these market limitations, Climeworks Solutions will implement a multi-pathway portfolio management strategy for the bank. Climeworks Solutions assumes complete responsibility for project sourcing, technical due diligence, and ongoing portfolio optimization. By blending near-term, scalable carbon removal pathways like biochar production with longer-duration engineered solutions, the managed portfolio hedges against underperformance from any single methodology. This structural solution gives the purchasing organization the flexibility to adapt its carbon procurement strategy as regional project pipelines and international accounting frameworks mature over the next ten years.

The agreement achieves several commercial and operational outcomes for both corporate entities and the broader carbon market. Toronto-Dominion Bank secures a reliable stream of high-integrity, North American-sourced removal credits to systematically address its residual corporate emissions over the next decade. For Climeworks Solutions, the long-term contract provides essential financial certainty to support its infrastructure expansion in Canada, including its corporate headquarters in Calgary and upcoming cold-weather direct air capture testing in Alberta. Ultimately, this commercial framework signals a broader institutional shift away from isolated, single-project offset purchases toward highly structured, diversified corporate procurement strategies.