NextGen CDR Facility, a joint venture between South Pole and Mitsubishi Corporation, has purchased almost 200,000 tonnes of carbon removal credits from three separate projects: Summit Carbon Solutions, 1PointFive and Carbo Culture. The purchase represents one of the largest transactions in the CDR market to date, and is aimed at unlocking the potential for large-scale carbon removal. Sector analysts have warned that the current rate of global CDR operations will not be enough to meet the Paris Agreement’s 1.5°C climate goal. NextGen has not disclosed how many carbon credits will come from each of the three projects, nor their cost, but has indicated that it targets an average price of $200 per tonne across its 1m tonne portfolio. Alongside South Pole and Mitsubishi Corporation, NextGen is backed by founding buyers Boston Consulting Group, LGT, Mitsui O.S.K. Lines, Swiss Re and UBS.
It is important that carbon credit schemes also benefit local communities.
The World Meteorological Organisation has stated that 193 countries have given unanimous backing to a scheme to monitor global greenhouse...