Carbon Unbound SF: Building the Future of Carbon Removal Funding

The recent Carbon Unbound SF summit in San Francisco drew over 300 key figures from the carbon removal and climate tech communities, including inventors, investors, and policy experts, to discuss one pressing issue: a lack of investment from small to mid-size buyers.

Although major corporations like Microsoft and Equinor are driving the carbon dioxide removal (CDR) market, there’s a pressing need to bring a wider range of buyers into the fold to meet ambitious 2050 climate targets.##The Current Landscape of CDR Investment

With the goal of reaching a 10-gigaton-per-year scale by 2050 to align with IPCC targets, Kevin Niparko, co-founder of CDR.fyi, noted the growth in CO₂ purchases, with a tenfold increase over the past two years.

Yet, he pointed out that the number of buyers remains worryingly low. “An already concentrated market is becoming even more concentrated,” Niparko remarked, highlighting that large entities like Microsoft alone account for 70% of CDR buys.

This overreliance on a few major players raises the stakes for the sector’s future, making it essential to attract diverse investors.

Carbon Unbound’s founder and CEO, Oliver Katz, underlined this point by turning the summit into an opportunity for fundraising, encouraging attendees to donate directly to the cause that brought them together.

Through contributions to Terraset, a 501(c)(3) organization supporting vetted CDR companies, Katz hopes to inspire meaningful financial engagement beyond mere discussions. “Why can’t Carbon Unbound be a place where we actually raise those dollars rather than just talking about it?” he asked.

Addressing Buyer Hesitations in CDR Investments

One of the most discussed topics was the reluctance of potential buyers, who worry about reputational risks and lack of clear investment guidance.

Erik Hansen from Workday, a California-based software firm, highlighted the risks his company considered before committing to CDR investments. Although Workday initially hesitated, fearing negative press after seeing scandals affect the voluntary carbon market, it ultimately recognized the catalytic potential of CDR investment. “Nobody wants to end up on the front page of the Guardian,” Hansen commented, emphasizing the cautious approach companies must take in such a high-stakes field.

To bridge the gap between potential buyers and the CDR industry, Na’im Merchant of Carbon Removal Canada urged corporate players to push for a clear standard from the Science-Based Targets Initiative (SBTi), calling on it to set a “north star” for the industry.

Without this guidance, many companies remain hesitant, unsure of what constitutes responsible and effective carbon purchasing. “What does responsible carbon purchasing look like? It’s their job to do this,” Merchant stated, reinforcing the need for a standardized approach.

Education and Guidance for New Buyers

Carbon Unbound SF offered dedicated sessions to address these buyer hesitations.

A standout session hosted by Tito Jankowski, CEO of Airminers, explored strategies to simplify the evaluation and investment process for smaller buyers, recognizing that most corporate sustainability teams are significantly understaffed.

The challenges of navigating an emerging field with diverse technologies make it tough for companies to act decisively.

Jankowski stressed that understanding carbon removal as a "trillion-dollar opportunity" rather than just an existential challenge can motivate smaller firms to participate.

At the same time, Frontier’s Joanna Klitzke and Hannah Bebbington shared their approach to de-risking CDR investments. They emphasized practical strategies, such as negotiating contracts with strong monitoring, reporting, and verification (MRV) terms, and focusing on critical questions to define investment priorities.

Questions like “When is your net-zero commitment due?” and “How much is your company willing to spend?” help buyers clarify whether immediate scaling or future commercial returns are their main objectives.

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Political and Policy-Related Investment Barriers

The looming uncertainty over U.S. climate policies added another layer of complexity for buyers at the summit.

A recent poll by CDR.fyi found that political concerns may be causing some investors to delay CDR commitments until after November’s elections.

Despite this, Carbon Unbound underscored the impact that state-level policy can have, with discussions around how states like California, Washington, and Colorado are leading climate innovation.

Nature-based solutions such as biochar and enhanced rock weathering are among the innovative approaches being promoted, and regional collaborations are helping to set standards and increase confidence in CDR investment.

Small Steps Towards Big Change

Many CDR startups left the conference with valuable new contacts, though concrete investment commitments remained scarce.

Canadian DAC firm Terrafixing’s Vida Gabriel found that Carbon Unbound was a valuable venue for relationship-building, while Carl Berglund from Swedish BECCS company Nordbex shared his thoughts on the buyer-developer relationship.

“How can we make it easier for buyers to buy, and how can buyers make it easier for developers to create something they want to buy?” Berglund asked, emphasizing the importance of mutual understanding in moving the industry forward.

Although no major financing rounds were announced, Carbon Unbound SF raised approximately $20,000 for Terraset by the conference's end, thanks to attendee donations.

Oliver Katz reflected on the achievement, remarking, “Next time we’re going for $50,000,” as attendees celebrated the initial success.

This initial fundraising success demonstrates that while the CDR market still faces substantial obstacles, events like Carbon Unbound SF are beginning to transform interest into action.

Toward a More Inclusive CDR Future

The future of carbon removal depends on broadening the investment base, reducing barriers, and providing clearer guidance.

By combining educational efforts, encouraging smaller investments, and focusing on transparency, Carbon Unbound SF is pushing the industry toward a more accessible and diversified CDR market.

With political uncertainties, limited resources, and reputational risks to consider, it’s clear that the carbon removal industry faces a challenging but vital path ahead.