Climeworks, a Swiss company specializing in direct air capture (DAC) technology and carbon removal, has raised US$162 million in equity funding.

This investment is reported as the largest carbon removal funding globally in 2025 to date.

With this funding round, Climeworks’ total funding exceeds US$1 billion.

The round was primarily led by BigPoint Holding and Partners Group, along with contributions from existing investors.

The new funding will also facilitate the expansion of Climeworks’ carbon removal portfolio.

The company plans to use the funds to improve its DAC technology and reduce the costs associated with carbon removal processes.

🔗 Source: Climeworks

🧠 Food for thought

1️⃣ The meteoric rise of direct air capture funding signals market maturation

Climeworks’ journey from a small Swiss startup to securing over $1 billion in total funding reflects the rapid evolution of the carbon removal industry.

In 2019, Climeworks had raised just over $50 million, demonstrating how dramatically investor confidence has grown in direct air capture technology in just a few years 1.

This investment surge comes as the broader DAC market is projected to grow from $0.07 billion in 2024 to $0.69 billion by 2029, a compound annual growth rate of 56.7% 2.

The scale of Climeworks’ funding is particularly significant considering the current average price for carbon removal through DAC is US$443.28 per ton, highlighting how capital-intensive building this infrastructure remains 3.

This funding milestone reflects growing recognition that meeting climate goals will require both emissions reductions and carbon removal at scale, creating a potential multi-billion-dollar market by 2030.

2️⃣ A critical supply-demand imbalance is emerging in durable carbon removal

Climeworks’ expansion comes amid forecasts of a significant gap between carbon removal supply and demand by the end of this decade.