Swiss Re delivers reinsurance insurance and different forms of insurance-based risk transfers. It has committed to a partnership with Climeworks to combat climate change by signing the world’s first long-term purchase agreement for carbon removal with direct air capture and storage worth $10 million. In this partnership, Swiss Re and Climework will indulge in developing risk management knowledge, risk transfer solutions, and exploring future investment and project finance opportunities. With this collaboration, Swiss Re marks a step toward its goal of reaching net zero-emission in its operation by 2030.
Climeworks permits people to reverse climate change by permanently removing carbon dioxide from the air. According to Climeworks, air capture technology captures carbon dioxide, which can either return to earth and be safely or permanently stored away for millions of years. Or it can recycle carbon dioxide into a climate-friendly product such as carbon-neutral fuels and materials. It is one of the safest and most durable forms of carbon removal solutions widely commercially available today.
Swiss Re recently found it is committed to achieving net zero-emissions in its insurance and investment business by 2050 by reducing its carbon footprint and removing any residual emissions. These reinsurance and insurance industries are at the forefront of assessing complex risk structures, including climate change. It is capable of structuring those risks and efficiently allocating them.
Swiss Re’s chief executive officer, the co-chair of the World Economic Forum’s Alliance of CEO Climate Leaders, Christian Mumenthaler, said migrating the risk of climate change to the world would amplify carbon removal on top instead of emission reduction. By partnering with Climeworks, companies can play to their strengths in this endeavor as risk-takers, investors, and forward-looking buyers of a climate solution.
Co-CEO and co-founder of Climeworks, Christoph Gebald, said they are very proud to have established the basis for a unique long-term partnership with the leading risk knowledge company Swiss Re. This collaboration is a milestone for the scale-up of Climeworks and the direct air capture industry.