BCG continues carbon removal shopping spree

Boston Consulting Group (BCG) has purchased over 50,000 tonnes of carbon dioxide removals from a range of different technologies in partnership with portfolio manager ClimeFi.

This transaction brings BCG’s total carbon removal portfolio to nearly 200,000 tonnes – including at least 21,000 direct air capture removals purchased last January – making the consulting firm one of the largest investors in carbon removal technologies.

This time, the carbon dioxide removal (CDR) credits will come from a range of carbon removal technologies, such as biochar, enhanced rock weathering, microbial carbon mineralisation on agricultural fields, concrete mineralisation and subsurface biomass storage.

Diversifying carbon removal project risks

The purchase agreements were arranged by carbon removal portfolio management firm ClimeFi, and signed with six different companies: Exomad Green (ranked as the top provider of CDRs so far), Euthenia Energy, Lithos Carbon, Andes, O.C.O: Technologies, and Graphyte. This variety will help BCG diversify project risks while investing in the scaling of these emerging methodologies.

"BCG is committed to helping innovators in this space, and we are glad to be able to partner with ClimeFi," said David Webb, BCG’s Chief Sustainability Officer. "By continuing to expand the CDR technologies we support, we are not only securing high-quality durable removals to neutralise our emissions, but helping to unlock the potential of these technologies to contribute to global climate targets.”

In a January 2024 interview with CSO Futures, Webb talked about the firm’s carbon removal strategy and its responsibility to help “advance the cause” by helping new methods mature and increase integrity.

Carbon dioxide removal market maturity

According to tracking platform CDR.fyi, around US$3 billion has been spent on nearly 12.5 million tonnes of carbon dioxide removals so far, bringing CDR credits’ average price to around US$246 per tonne. 

There are, however, great price differences between different CDR technologies: biochar carbon removal credits are the cheapest at around US$110 per tonne, while ocean alkalinity enhancement (which involves adding alkaline substances to seawater to accelerate the ocean’s natural carbon sink) and direct ocean removal credits sell for as much as US$1,400 per tonne.

Overall, CDR prices are much higher than the average price of voluntary carbon credits (US$6.53 per tonne CO2e in 2023), signalling the trust companies are placing in carbon removals. CDR credits are seen as more impactful than other credits, since their guidelines – including the EU’s Carbon Removal Certification Framework – state that they must safely store carbon dioxide for at least 100 years.

Top purchasers of carbon removals include Microsoft, the Frontier coalition, Airbus, Google, Equinor, Amazon, and BCG – most of which are planning to use them to offset their emissions.