ENGIE and CarbonX join forces to scale the early market for permanent carbon removals
Through the investment of ENGIE New Ventures in the Paris-based startup
- Press release
- 05/09/2024
Carbon Dioxide Removal (CDR) is required to achieve global and national net zero targets, according to the Intergovernmental Panel on Climate Change (IPCC). While CDR cannot substitute for immediate and deep emissions reductions, it is part of all modelled scenarios that limit global warming to 2°C or lower by 2100. In the context of sustainable development highlighted in the Paris Agreement, these scenarios identify a central range of CDR deployment between 7 to 9 GtCO2 per year by 2050.
“Engaging in this ‘pre-compliance’ market now, alongside emissions reduction programmes, enables organisations to contribute to the development of carbon removal methods at scale, gain experience, and secure future supply whilst addressing carbon liabilities and future carbon accounting frameworks.” said Paolo Piffaretti, Co-founder and Chief Executive Officer of CarbonX.
The investment is consolidated by a collaboration agreement with ENGIE’s business entity, Global Energy Management & Sales, which aims to bring CarbonX’s set of solutions to its wide portfolio of customers. CarbonX’s continued investment in market intelligence, procurement, finance, and risk management capabilities will allow committed and new-to-market buyers to optimise their strategies and impact, as well as manage risk.
“Through this investment and the partnership with CarbonX, ENGIE further demonstrates its global leadership in accelerating the green transition. Reaching net zero will require a broad set of solutions, not only to decarbonise, but also to remove CO2 from the atmosphere and store it permanently.
CarbonX is uniquely placed to help our customers navigate the emerging CDR market and to contribute to scale the most promising CDR technologies.” said Jérôme Malka, Executive Committee member at ENGIE’s business entity ‘Global Energy Management & Sales’.
ENGIE New Ventures, ENGIE’s investment fund for innovative start-ups accelerating the energy transition, has partnered with Redstone and PROfounders to invest in CarbonX. This new funding round consolidates CarbonX’s position as the preferred expert partner for organisations with net-zero and net-negative commitments.