Why Schneider Electric Invests in Climeworks Carbon Capture

Schneider Electric, a global leader in digital energy management and automation, has entered into a landmark agreement with Climeworks, a leading carbon removal company, to eliminate more than 28,000 tonnes of CO₂ from the atmosphere by 2039.

The agreement is Schneider’s first purchase of high-durability carbon removal and Climeworks’ largest-ever portfolio agreement to date, aligning with the energy management company’s emission reduction efforts.

How will the agreement work?

Climeworks’ role in the deal involves removing more than 28,000 tonnes of CO₂ through three high-durability solutions:

• Direct air capture (DAC) and storage - technology that removes the carbon directly from the atmosphere and stores it underground in geological formations
• Bioenergy with carbon capture and storage - CDR tech that generates renewable energy and captures the emissions for permanent underground storage 
• Enhanced rock weathering - accelerating natural weathering of silicate rocks to remove the CO₂ from the atmosphere and store permanently.

On track to net zero

This complements Schneider Electric’s commitment to becoming net zero across its entire value chain by 2050 and a 90% reduction of CO₂ emissions for Scope 1 and 2 by 2030.

Esther Finordoi, Chief Sustainability Officer at Schneider Electric, says: “This agreement represents an important step in diversifying our carbon removal portfolio with high-durability solutions and adds to our carbon removal capabilities as we prepare for the journey to 2050.”

Both industries benefit from this deal: securing access to high-durability carbon removal allows Schneider Electric to not only address future neutralisation needs while pursuing its vast emissions reductions, but supports the scale-up of the carbon removal industry.

Speaking on the importance of this partnership, Esther says: “Both carbon removal and carbon reduction are fundamental to achieving our climate goals, as well as those of the planet.  

“The move into durable carbon removal that we’re making today complements our continuous efforts on accelerating emissions reductions, and our existing investments in nature-based carbon removal. 

“Here’s an emerging industry, where early engagement catalyses the scale-up of a wide range of technologies and supports the path for Schneider Electric and others in the future. In Climeworks, we have found a partner with unparalleled history and know-how in the carbon removal industry, showing time and again what’s possible.”

Technology-based and nature-based carbon removal

Schneider Electric was one of the first companies to see its greenhouse gas net zero targets to be validated by the Science Based Targets initiative’s (SBTi) Corporate Net Zero Standard in August 2022.

This requires companies to reduce emissions by at least 90% and neutralise any remaining emissions with high-quality carbon removal.

This agreement represents an important step in the company’s efforts to reach these targets, but it says it is also aware of the importance of both technology and nature-based carbon removal.

Schneider Electric says it will continue to invest in nature-based carbon removal through the Livelihoods Carbon Fund and its subsidiary EcoAct, which supports global carbon credit advisory, sourcing and product development and delivers environmental, social and economic benefits while helping companies achieve their climate targets.

Christoph Gebald, Co-CEO and Co-Founder of Climeworks, says: “This agreement marks a milestone for Climeworks. Schneider Electric is nothing short of an institution, and we are proud to provide them with the most durable carbon removal available. 

“Demand for solutions that can store CO₂ permanently will only grow, making early access essential for forward-looking companies. Our collaboration will not only help to further accelerate the cost-reduction trajectory of Direct Air Capture, but also demonstrates that climate action and economic foresight go hand in hand—and carbon removal is where they meet.” 

A long path to change

Carbon removal solutions outlined in this agreement are long-term commitments that will grow into large-scale infrastructure projects.

For bioenergy with carbon capture and storage and DAC and storage, securing the necessary funding to build capital-intensive infrastructure is key. 

Climeworks says it is focused on building the world’s lowest-cost DAC technology to make carbon removal a reality.

Collaboration between the two companies on tech solutions is aimed at enhancing energy efficiency and supporting the cost-reduction of the capture technology.  

Focus is said to also be on refining the monitoring, reporting and verification process of enhanced rock weathering.

Schneider Electric says that it recognises the three solutions as promising pathways that will scale by 2050.