It can be difficult to envision the long-term payoffs of investing in carbon removal today. However, the reality is that there are strong incentives to do so from both a financial and reputational perspective.

1. Gain first-mover advantage

In the carbon removal sector, early investors can gain strategic and competitive benefits by engaging in critical efforts to scale an industry that is vital to reaching net zero.

Secure access today and tomorrow

Supply of carbon removal solutions is currently limited, and this scarcity is projected to intensify as demand skyrockets. According to Bloomberg, carbon credit prices could increase fifty-fold by 2050, making it crucial for companies to secure access now and hedge against future constraints.

Investing in a diversified portfolio of carbon removal methods at different price points, with varying levels of permanence, can help companies shift towards more permanent carbon removal over time—enabling greater climate impact within the same budget.

‍Carbon Purchase Agreements (CPAs) offer another long-term strategy to secure high-quality carbon removal credits over time at a fixed price point, simplifying procurement and managing financial and delivery risks. Learn more about how a CPA works here.

Build a firm knowledge base and establish supplier relations

Early adopters in the carbon removal market gain valuable supplier relationships. By gaining insights in this emerging sector, businesses can ensure they are well-positioned as the market matures. Building a robust knowledge base and supplier network early on will help smooth out any roadblocks on your sustainability journey down the line.

2. Stand out as a climate leader

Investing in thoroughly vetted, high-quality carbon removal sends a strong signal to employees, customers and other stakeholders that you are taking sustainability seriously, while also protecting you from potential greenwashing claims.

Attract and retain top talent

Companies with strong environmental policies attract more employees. Contributing to sustainability and climate action is becoming an ever bigger consideration for career decisions. An IBM study found that 67% of employees are more willing to apply and 68% more likely to accept job offers from companies committed to sustainability.

Appeal to environmentally conscious customers

Consumer preferences are also shifting rapidly towards sustainability. A recent survey of over 1,000 US adults revealed striking evidence that two-thirds are willing to pay more for sustainable products (Sustainable Brands). Additionally, more companies are including carbon metrics in their RFPs to reduce their own environmental impact, creating opportunities for businesses that prioritise carbon removal.

Boost company valuation

Strong, well-defined net zero targets are an indication that a company is keeping stride with global trends and regulatory expectations. This proactive stance can significantly enhance investor confidence, as it demonstrates a commitment to sustainability and long-term risk management.

Companies with clear carbon reduction and removal strategies often enjoy a premium in the market because they are perceived as less vulnerable to future carbon pricing, policy changes, and resource constraints.

3. Future-proof your business

By investing in carbon removal now, companies can secure a competitive edge, attract talent and customers, and mitigate future regulatory risk.

Stay ahead of compliance and regulation

Governments worldwide are increasingly considering the integration of carbon removal credits into their emissions trading schemes. At the same time, new compliance reporting directives are coming into force, such as the EU Corporate Sustainability Reporting Directive, and the US Security Exchange Commissions’s climate disclosure rules. These carbon reporting policies will only become more stringent in the years to come, as global net zero efforts continue to gain momentum. Staying ahead of these regulatory changes ensures that businesses are not caught off guard and can smoothly adapt to new compliance requirements.

Set a price on carbon and make informed decisions

Establishing an internal price on carbon helps companies evaluate investments, manage risks, and develop forward-thinking strategies. Taking a proactive approach to carbon pricing can significantly enhance a company’s ability to future-proof its operations and align with evolving market expectations.

Getting started with carbon removal

Theres is strong evidence that investing in carbon removal today not only addresses critical environmental challenges but also provides strategic business advantages.

There are some key steps that must be taken beforehand:

• Calculating your total emissions across Scopes 1, 2 and 3
• Making sure you have a strategy in place to reduce these emissions as much as possible
• Setting carbon removal targets in line with your budget and climate ambitions

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