Climeworks Signs 10-Year Carbon Removal Deal With TD Bank

Climeworks Solutions will supply TD Bank with a managed portfolio of carbon removal credits over 10 years.
The portfolio will cover multiple North American carbon removal pathways, including enhanced rock weathering, biochar, BECCS and future direct air capture.
The agreement gives TD access to emerging carbon removal technologies while helping manage residual emissions and market risk.

TD Bank Backs Long-Term Carbon Removal Portfolio

Toronto-Dominion Bank has signed a 10-year carbon removal agreement with Climeworks Solutions, giving one of North America’s largest banks access to a diversified portfolio of high-quality carbon removal credits.

The agreement places TD among the early financial services buyers using long-term procurement to support carbon dioxide removal, known as CDR. It also gives Climeworks Solutions its first Canadian financial services customer.

Climeworks Solutions, part of the Climeworks group, will source, assess and manage the portfolio for TD. The credits will come from several carbon removal pathways across North America. These include enhanced rock weathering, biochar and bioenergy with carbon capture and storage.

Each method aims to remove carbon dioxide from the atmosphere and store it for long periods. That durability matters for companies managing residual emissions, especially where emissions cuts remain technically difficult or costly.

Portfolio Approach Aims To Reduce Market Risk

The deal reflects a shift in corporate carbon strategy. Large institutions are moving beyond single-project purchases and looking for portfolios that can spread delivery and methodology risk.

Carbon removal markets remain young. Standards continue to evolve. Project quality, durability, monitoring and verification remain central concerns for buyers, investors and regulators.

Climeworks Solutions said it will manage project sourcing, due diligence and ongoing portfolio oversight. That gives TD exposure to different technologies while avoiding reliance on one removal pathway.

“We’re excited to work with TD Bank, Climeworks Solutions’ first Canadian financial services customer and a globally leading financial institution,” said Adrian Siegrist, Chief Commercial Officer at Climeworks. “Through our portfolio approach, we will provide a mix of North American-sourced high-quality removals from regional projects alongside future direct air capture credits from Climeworks. With our strong track record, including 100% delivery rates of our portfolios in 2025, we can provide value for TD Bank by supporting it in addressing its residual emissions.”

Adrian Siegrist, Chief Commercial Officer at Climeworks

The structure also gives TD flexibility as the sector matures. That is important for financial institutions, which face rising scrutiny over climate commitments, financed emissions and the credibility of offset use.

“As carbon market standards and methodologies continue to evolve, Climeworks Solutions’ portfolio approach helps mitigate risk while providing organizations with flexible options in their carbon management strategies” said Susan Thompson, Managing Director Sustainable Finance and Advisory at TD Securities.

Susan Thompson, Managing Director Sustainable Finance and Advisory at TD Securities

Direct Air Capture Push Expands In Canada

The agreement also gives TD future access to direct air capture credits from one of Climeworks’ planned North American facilities.

Climeworks has recently taken steps toward larger deployment in Canada. The company opened its corporate headquarters in Calgary and plans to focus on cold-weather testing of its direct air capture technology in the coming months.

That testing will be an important step before the company builds a commercial-scale plant. Canada’s climate, energy infrastructure and carbon storage potential make it a strategic market for direct air capture developers.

Alberta is also becoming a focal point for carbon management. The province already has experience with carbon capture and storage, energy infrastructure and industrial emissions management.

“Being the first Canadian bank to support Climeworks’ Direct Air Capture technology is well aligned with our strategy of supporting a broad set of innovative clean technologies in North America, and we are looking forward to Climeworks’ innovations in Alberta,” said Nicole Vadori, Vice-President Global Sustainability at TD Bank.

Nicole Vadori, Vice-President Global Sustainability at TD Bank

What Executives Should Take Away

For C-suite leaders, the TD agreement shows how carbon removal procurement is becoming more structured. Buyers are placing greater value on portfolios, due diligence and long-term delivery.

For banks, the issue is especially sensitive. Financial institutions face pressure to align their operations and lending activities with climate targets. At the same time, they must show credible action without overstating the role of credits.

For carbon markets, the deal adds demand for durable removals at a time when supply remains limited. It may also help give emerging project developers stronger demand visibility.

The wider significance is clear. Carbon removal is moving from pilot-stage climate strategy into long-term corporate procurement. For North America, deals like this can help shape the next phase of clean technology investment, carbon market governance and residual emissions management.