Swiss Re Ltd. has entered into a $ 10 million $ 10 million carbon dioxide purchase agreement with Zurich-based Climeworks AG, a specialist in carbon dioxide capture technology.
The agreement will give Swiss Re early access to risk pools and asset classes for the removal of carbon dioxide, the Zurich-based reinsurer said in a statement on Wednesday.
The companies have also agreed to work together to develop knowledge of risk management and risk transfer programs and to explore future investment and project financing opportunities.
"To reduce the risks of climate change, the world needs to scale up CO2 emissions in addition to, not instead of, emission reductions," said Christian Mumenthaler, Swiss Re's CEO and co-chair of the World Economic Forum's Alliance of CEOs.
Swiss Re aims to achieve net zero emissions in its own operations by 2030 and in its insurance and investment activities by 2050.
The carbon dioxide removal technology from Climeworks in Iceland filters carbon dioxide from ambient air using geothermal energy energy and collected CO2 are then sent for permanent storage in nearby rock layers, according to the statement.
It dissolves in water and is pumped underground where it reacts naturally with the surrounding basalt rock to form stable carbonate minerals . It is considered to be one of the safest forms of carbon dioxide removal available commercially, says Swiss Re in the statement.