Weekly Recap of Latest News and Developments
In the year 2025, the carbon removal market is witnessing a significant shift towards durable, technology-driven solutions. This evolution is marked by a growing demand from corporate sectors, particularly tech and professional services, for high-integrity, scalable carbon removals.
One of the key drivers of this trend is the increased transparency in credit retirements, signaling a move away from "greenhushing" and boosting buyer confidence. Major corporations are taking the lead in this transition, with JPMorgan and Microsoft being at the forefront.
JPMorgan and Microsoft, along with other corporations like Google and McKinsey, have collectively invested $41 million via the Frontier coalition into Arbor, a startup deploying bioenergy with carbon capture and storage (BECCS) technology. This investment reflects a broader industry shift towards industrial and technological carbon removal credits, which are expected to capture a larger market share as costs decline with scale.
Initiatives such as Planet2050’s Permanent Carbon Removal RFP, attracting hundreds of projects globally, echo this momentum towards innovation, durability, and multi-revenue streams in carbon removal technologies. These principles are likely aligned with the corporate strategies of firms like JPMorgan and Microsoft, seeking to scale high-quality, verifiable removal projects.
Meanwhile, in the realm of sustainability compliance, Makersite has raised $70 million to help manufacturers design more sustainable products, while osapiens, a sustainability compliance solutions provider, has invested $40 million to enter the UK market. Goldman Sachs has also made a move by acquiring liquid waste solutions provider LES, and Mizuho has acquired energy transition-focused investment bank Augusta.
Regulatory bodies are also playing their part. The EU is planning to simplify regulations on industrial emissions, circular economy, and waste management. The UK has allowed the use of carbon removals in the emissions trading system, and the SBTi has released a net zero standard for banks and investors.
Moreover, Jupiter Intelligence has launched new solutions for banks and investors to quantify climate risk, while JPMorgan and Microsoft have backed a new financing model to scale nature-based carbon removal projects. Standard Chartered has also launched a new sustainable cash management solution for corporate clients.
In the insurance sector, there's a growing need for adaptation to the new climate reality. A guest post discusses this need in detail. Deutsche Bank has reported its strongest sustainable finance quarter since 2021, and Sol Systems has secured $675 million to fund solar and storage projects across the U.S.
The ICJ opinion has opened the door for climate change lawsuits against developed nations, and Lloyds has launched a carbon and nature markets practice. Petrobras has appointed a new chief of energy transition and sustainability, and GeologicAI has raised $44 million to use AI to source critical minerals. Ambienta has acquired sustainable agriculture platform Agronova.
In conclusion, the 2025 landscape presents a maturation in the carbon removal market, with a focus on durable, technologic solutions supported by major tech and financial firms, and increasing investments aimed at scaling verified, high-integrity removals backed by transparent market practices.
[1] Morgan Stanley Survey [2] Planet2050 Permanent Carbon Removal RFP [3] Frontier Coalition Investment [4] Industrial and Technological Carbon Removal Market
- The surge in demand for high-integrity, scalable carbon removals from tech and professional services sectors is driving the transformation of the sustainable finance landscape, particularly in the carbon removal market where technology-driven solutions are becoming more prevalent.
- Tech giants like Microsoft and JPMorgan, alongside other corporations such as Google and McKinsey, are leading this transition by investing in startups that deploy technology-driven carbon removal solutions, such as Arbor's BECCS technology.
- As the carbon removal market evolves, there is a growing emphasis on industrial and technological carbon removal credits, with these solutions expected to capture a larger market share as costs decrease with scale.
- Emphasis on durability, innovation, and multi-revenue streams in carbon removal technologies is reflected in initiatives like Planet2050’s Permanent Carbon Removal RFP, which attracts projects globally, signaling a shift towards sustainable finance solutions that prioritize technology and lasting impact.
