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Carbon Purchase Agreement (CPA)

Your Net Zero commitment, delivered

A Carbon Purchase Agreement (CPA) is a contract entered into between an issuer and a purchaser of Carbon Dioxide Removal (CDR) credits.

The goal is for the Purchaser to have access to CDR credits in the future, at pre-agreed cost, volume and terms.

The purpose is to ensure the Purchaser access to carbon removal in the future while ensuring the environmental credibility and additionality of the CDR credits.

Carbon Purchase Agreement (CPA)

Your Net Zero commitment, delivered

A Carbon Purchase Agreement (CPA) is a contract entered into between an issuer and a purchaser of Carbon Dioxide Removal (CDR) credits.

The goal is for the Purchaser to have access to CDR credits in the future, at pre-agreed cost, volume and terms.

The purpose is to ensure the Purchaser access to carbon removal in the future while ensuring the environmental credibility and additionality of the CDR credits.

Quick access

CPA overview

Why CPA makes sense

How it works

Key terms

Open CPAs

Why Klimate

Quick access

CPA overview

Why CPA makes sense

How it works

Key terms

Open CPAs

Why Klimate

CPA overview

Ambitious companies with Net Zero commitments sign on to CPAs to aggregate demand

By signing CPAs, companies secure their access to high-quality CDR projects that will not be available in the future.

By grouping together projects, companies can create sufficient demand to ensure development at a cost-efficient scale and guarantee additionality.

Project suppliers use the CPA to build new CDR facilities

With demand secured, Klimate collaborates with suppliers to secure working capital and deploy CDR facilities. We use our robust and proprietary analytical framework to ensure that only the highest quality projects are supported.

CDR credits with true additionality

As the CDR projects begin delivery, purchasers pay for credits, registered on the public records of Klimate.

The cost is fixed, as opposed to the market price, expected to increase significantly in the coming years due to supply shortages.

CPA overview

Ambitious companies with Net Zero commitments sign on to CPAs to aggregate demand

By signing CPAs, companies secure their access to high-quality CDR projects that will not be available in the future.

By grouping together projects, companies can create sufficient demand to ensure development at a cost-efficient scale and guarantee additionality.

Project suppliers use the CPA to build new CDR facilities

With demand secured, Klimate collaborates with suppliers to secure working capital and deploy CDR facilities. We use our robust and proprietary analytical framework to ensure that only the highest quality projects are supported.

CDR credits with true additionality

As the CDR projects begin delivery, purchasers pay for credits, registered on the public records of Klimate.

The cost is fixed, as opposed to the market price, expected to increase significantly in the coming years due to supply shortages.

Why CPAs are critical to delivering Net Zero commitments

Net Zero requires CDR

Companies need to reduce as much as possible, but unavoidable emissions must be addressed.

The SBTi Net Zero requires permanent Carbon Dioxide Removal like Direct Air Capture and Biochar.

Secure access to CDR for your Net Zero target

There is already a significant shortage of supply, especially in high-quality carbon removal.

Leading companies like Meta, Google, Stripe and McKinsey are already pre-committing to purchase CDR towards 2030.

Lock in the cost

The cost of CDR is increasing rapidly, which is expected to accelerate as demand rapidly outpaces supply.

By committing early, you fix the future cost, while paying the full amount only at the successful delivery of the CDR credits.

Accelerate development with truly additional projects

Additionality is the holy grail of offsetting emissions. By co-initiating projects, CPAs become unquestionably additional.

At the same time, you send a market signal to accelerate the Carbon removal industry as a whole.

How it works

Step 1

Set Net Zero target

It all starts with ambitious companies committing to reaching Net Zero emissions.

Step 2

Commit to future CDR purchase

To become Net Zero, companies need access to high-quality CDR credits. By committing to future purchases, companies secure access at a pre-defined price.

Step 3

We aggregate demand and our suppliers deploy new facilities

We aggregate the CDR credit commitments from several companies and provide off-take guarantees to our suppliers. With this, they can deploy new facilities.

Step 4

Additional CDR facilities deliver CDR units according to schedule

Our suppliers construct new facilities and deliver the CDR credits according to the schedule needed for your CDR net zero portfolio.

Step 5

Companies pay for CDR units upon delivery

The CDR credits are reserved up-front for a pre-defined period and companies pay a small fee to reserve these. The final payment is due at the time of CDR credit delivery, i.e. every year over the contract period.

Step 6

Net zero, achieved

Sit back and wait for the CDR credits to be delivered. No need to worry about finding the right projects or not meeting your target. With Klimate’s CPA model its simple: Net Zero = achieved.

Key terms

1

Method

There are many ways to remove CO₂, each CPA specifies which method will be used.

2

Volume CO₂ / Year

Each CPA holds a certain amount of CO₂ that can be produced per year.

3

Cost / Ton

The cost for each CDR credit, typically 1 ton CO₂.

4

Delivery schedule

The time period and volumes in which the CDR credits will be delivered. For example 2025 to 2030.

5

Pre-commitment

The share of the total amount which needs to be committed at the start of the contract.

Open projects

Talk to one of our experts and learn more about how CPAs can help you deliver your Net Zero goals

Why Klimate?

Rely on science and expertise

The Carbon Dioxide Removal is an industry in its infancy. We have been working with CDR from the start, and hired a Climate Science PhD, so you don’t have to.

Gain unique access

Our unique network and a relationships with CDR suppliers place us in an exclusive position to secure credits even before they exist.

Create Partnerships for the planet

We bring together companies ranging from small cap to larger corporations to maximise their impact in an efficient manner.

Use Carbon removal only

From our birth, we only offer carbon removal solutions to our customers, avoiding the risks of greenwashing seen in typical offsetting.

Meet with us to know more and get started!

We are here for you

Finding the right way to remove your CO emissions can seem overwhelming. Luckily, we are always here to help. You can book a meeting to walk through how our solution might fit your needs, or simply send us a message.

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