Climeworks Brings a 10-Year CDR Deal to Canada With TD Bank

Switzerland's leading direct air capture company just signed its first Canadian financial services agreement. Climeworks Solutions will supply Toronto-Dominion Bank with a diversified portfolio of carbon removal credits over 10 years, spanning four CDR pathways. The deal is the clearest commercial signal yet from Climeworks' Calgary headquarters, opened in February 2026.

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What Did Climeworks and TD Bank Agree To?

Climeworks Solutions will supply TD Bank with a managed portfolio of carbon removal credits over 10 years. The portfolio spans multiple North American CDR pathways. Climeworks Solutions takes full responsibility for project sourcing, due diligence, and ongoing management.

The portfolio covers four carbon removal approaches: enhanced rock weathering (ERW), biochar, and bioenergy with carbon capture and storage (BECCS). It will also include future direct air capture credits from one of Climeworks' planned North American facilities. Each pathway stores carbon for long durations, with removed CO2 locked away in geological formations or stable mineral forms.

TD is the sixth largest bank in North America. For Climeworks, TD is the first financial services customer in Canada. For TD, it is the first Canadian bank to commit to Climeworks' direct air capture technology.

Why Does the Portfolio Approach Matter?

This is not a single-technology offtake. Climeworks Solutions is managing a diversified CDR portfolio on TD's behalf. The structure blends near-term credits from commercially available pathways with longer-horizon DAC credits as Climeworks' North American facilities come online.

Climeworks Solutions, the portfolio management service of Climeworks, launched in April 2024. It was created in response to corporate demand for managed, multi-pathway CDR procurement. Climeworks handles sourcing, scientific due diligence, and delivery. Clients get verified credits across technologies without having to evaluate individual projects in-house.

Susan Thompson, Managing Director of Sustainable Finance and Advisory at TD Securities, said the structure helps corporate buyers navigate a market that is still evolving.

The multi-pathway structure is increasingly standard among sophisticated CDR buyers. Instead of betting on a single technology, buyers spread procurement across biochar and other durable removal pathways and enhanced rock weathering projects. BECCS facilities now coming online across North America round out the near-term supply. Longer-horizon DAC credits extend the portfolio as that technology scales.

Climeworks Solutions reported a 100% delivery rate on its CDR portfolios in 2025. That track record matters for financial institutions facing rising scrutiny over the quality and credibility of their climate commitments.

CDR Pathway	Storage Durability	Scale Readiness	Role in TD Portfolio
Enhanced Rock Weathering (ERW)	Thousands of years (mineral form)	Scaling commercially	Near-term verified credits
Biochar	Centuries to millennia	Commercially available	Near-term verified credits
BECCS	Geological (thousands of years)	Scaling in North America	Mid-term durable credits
Direct Air Capture (DAC)	Geological (thousands of years)	Commercial scale in development	Future credits from planned North American facilities

How Is Climeworks Building Its North American Platform?

Climeworks established its Canadian headquarters at Calgary's Energy Transition Centre in February 2026. The company chose Alberta for its carbon management expertise, CO2 storage infrastructure, and a regulatory framework that has attracted international carbon removal companies.

The TD deal is the first major commercial signal from that Calgary presence. It connects Climeworks Solutions' portfolio capability directly to a flagship Canadian financial institution, building market credibility ahead of planned technology milestones.

The next step is cold-weather testing of Climeworks' DAC technology. A mobile testing facility is expected to begin operations in the Calgary region by fall 2026. The data collected will inform the design and siting of a larger commercial-scale DAC plant in Alberta. Climeworks currently operates the world's first two commercial DAC plants, both in Iceland. Its Mammoth facility has a design capacity to remove up to 36,000 metric tonnes of CO2 annually.

Nicole Vadori, Vice-President of Global Sustainability at TD Bank, described the agreement as aligned with TD's broader sustainability strategy. She specifically highlighted support for innovative clean technologies across North America.

Alberta's advantages for DAC deployment include established CO2 storage infrastructure, a mature regulatory framework for carbon capture projects, and deep engineering and operational expertise. Climeworks cited those factors when it selected Calgary for its Canadian base.

The Climeworks-TD deal also closes out a notable week for Canadian CDR procurement. On June 4, 2026, TD separately signed a 10-year DAC offtake with Deep Sky. Deep Sky is a Montreal-based carbon removal developer. That agreement covers more than 18,000 verified DAC credits. Two long-term CDR deals in one week reflect a bank making a deliberate, multi-supplier commitment to durable carbon removal, not a one-off purchase.

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What Does This Signal About Canada's CDR Market?

Canada has positioned itself as a policy-aligned market for long-term CDR procurement. The federal government launched a competitive carbon removal procurement program targeting at least C$10 million in purchases across multiple pathways. The Canada CDR federal procurement program covers DAC, BECCS, biochar, and enhanced mineralization. Projects must be located in Canada to qualify.

That government-side demand signal is pulling in international players like Climeworks. It is also anchoring domestic buyers like TD to long-term procurement agreements. Alberta's infrastructure advantage reinforces both trends.

The broader durable CDR market is also in a strong growth phase. According to CDR.fyi's Q1 2026 market update, 2.3 million metric tonnes of durable CDR were contracted in the first quarter of 2026. That figure is approximately 560% of Q1 2025 volume. Financial services firms were among the leading sector buyers during that period. The same report found that intermediaries facilitated 74% of all contracted CDR tonnes in Q1 2026. That is the highest quarterly share on record. It shows how portfolio managers have become central to corporate CDR procurement.

For banks specifically, long-term CDR procurement addresses a structural challenge. A large share of a bank's climate exposure comes from financed emissions tied to lending and investment portfolios. That makes decarbonization more complex than in most industries. Managed CDR portfolios with verified delivery histories and multi-pathway coverage give procurement teams a defensible, science-aligned position as scrutiny over corporate climate commitments intensifies.

A Maturing Market Signal From Calgary to Zurich

The Climeworks-TD deal is not just an offtake agreement. It is a managed services contract. Climeworks Solutions owns the portfolio construction, the due diligence workflow, and the ongoing management over the full 10-year term. That kind of arrangement reflects a CDR market that has moved past the early-adopter phase. Specialized intermediaries now absorb the complexity on behalf of corporate buyers.

This is also Climeworks' second CDR portfolio agreement in roughly five weeks. Its first, with NTT DATA Group on April 30, 2026, was the company's first portfolio deal with a major AI infrastructure firm. The TD deal is its first with a Canadian financial institution. The two deals together show Climeworks Solutions actively building a diversified buyer base across sectors, with North America as its growth theater.

Climeworks was founded in 2009 as a spin-off from ETH Zurich. It launched its first commercial DAC plant in 2017 and currently operates the world's first two commercial-scale DAC plants in Iceland. With a Calgary headquarters now operational and cold-weather DAC testing imminent, the company has moved fast. A 10-year portfolio commitment from one of Canada's largest banks confirms the North American platform is real. Canada's CDR market is moving from policy signal to commercial reality, and this deal is proof of that.

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