PayPal and 3Degrees Build Diversified Carbon Removal Portfolio With Biochar and BECCS

PayPal has entered the high-durability carbon dioxide removal market through a portfolio developed with 3Degrees, expanding its climate strategy beyond operational emissions reductions. The financial technology company plans to reach net-zero greenhouse gas emissions by 2040 and is using carbon removal to address residual emissions that remain after direct reductions.

The portfolio combines artisanal biochar production in India with bioenergy with carbon capture and storage in North Dakota. This diversified structure gives PayPal exposure to two removal pathways with different technologies, project scales, community impacts, and delivery profiles while reducing dependence on a single supplier or methodology.

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A Portfolio Spanning Biochar and BECCS

PayPal’s biochar purchase supports Heartyculture Biochar, which converts agricultural residues such as cotton stalks into stable carbon through pyrolysis. The material is applied to soil, where it can retain carbon for long periods while improving water retention and nutrient efficiency. The project also creates an alternative to open-field burning and channels carbon-credit revenue toward rural producers and farmers in India.

The second component supports Gevo North Dakota, an operating BECCS facility connected to ethanol production. Biogenic carbon dioxide produced during fermentation is captured and injected into deep geological formations for permanent storage. According to the July 2026 case study, the facility is among a limited number of BECCS projects already delivering carbon removal credits, giving PayPal access to an engineered removal pathway with operating history.

Technical Review Reduced Procurement Risk

3Degrees evaluated the registries, methodologies, carbon-accounting systems, project documentation, audits, and operational controls associated with the selected projects. That review was designed to confirm that the credits represented measurable removals and that delivery claims were supported by appropriate monitoring, reporting, and verification procedures.

The adviser also used aggregated demand and a portfolio approach to help PayPal secure smaller spot-purchase volumes. High-durability removal projects often seek large commitments or long-term offtake agreements, which can limit access for first-time buyers. Pooling demand allowed the company to obtain credits on terms aligned with its internal climate strategy and budget.

“Investing in high-durability carbon removals was a vital step for PayPal,” said Cullen Mitchell, Sustainability Manager at PayPal. He said the technical support helped the company invest in a diversified portfolio that matched its climate ambitions.

Building a Repeatable Carbon Removal Strategy

The transaction gives PayPal a practical entry point into a market where project quality, permanence, additionality, and delivery risk can vary substantially. It also shows how corporate buyers can combine community-based biochar with industrial-scale geological storage instead of relying on one carbon removal route.

For project developers, diversified purchases can help create demand for earlier-stage pathways while supporting facilities already issuing credits. For PayPal, the structure provides a framework that can be expanded as carbon removal standards, project supply, and procurement guidance continue to develop.

About 3Degrees

3Degrees provides climate strategy, renewable energy, transportation decarbonization, and environmental commodity services. The company also develops and sources carbon projects, helping organizations evaluate project quality, manage procurement risk, and implement climate programs across multiple markets.

Major source: Original case study