Climeworks, one of the earliest and most prominent companies trying to draw carbon out of the air for a profit, is branching out via a carbon removal portfolio company called Climeworks Solutions, Andrew writes.

Why it matters: This move, announced today, allows companies to pay Climeworks for verifiable carbon removals from a range of technologies.

• It could herald similar pivots by other removal companies to take advantage of additional revenue streams.

The big picture: The company, headquartered in Zurich with a growing U.S. presence, is focused on scaling up direct air capture technologies.

• Company leaders described the new venture as an extension of its main air capture work.
• Constructing direct air capture facilities has given its staff insights into the effectiveness of this and other removal technologies, which gives it an advantage in helping other customers.

Zoom in: As of today, Climeworks no longer simply offers companies a way to contract for direct air capture solutions at its facilities in Iceland, for example. But it will instead also offer to construct and carry out carbon removal portfolios.

• These may consist of both engineered and nature-based approaches to carbon removal.
• It's akin to an investing company offering a mix of index and mutual funds — except instead of a portfolio of stocks and bonds, this involves different ways to remove carbon from the atmosphere.

How it works: Breitling, the luxury watchmaker popular among pilots, is Climeworks Solutions' inaugural customer, having signed a 12-year agreement.

• The new division is already in conversations with about 50 companies, said Adrian Siegrist, VP of Climeworks Solutions, during a media briefing yesterday.

Context: Many experts have doubts about how quickly, effectively and cheaply carbon removal technologies, such as direct air capture, can scale up.

• However, climate studies show that carbon removal will be necessary to limit global warming to the Paris targets.
• This is due to the sheer amount of long-lasting CO2 emitted by cars, trucks, power plants, deforestation and other sources to date. Also, global emissions are still increasing.

The bottom line: Climeworks' new division may be a natural outgrowth of its expertise in direct air capture, as it has seen increasing momentum in that market.

• "Companies are looking to purchase bundles or portfolios of different carbon removal approaches," Siegrist said.

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President Biden is urging his trade policy chief to consider tripling tariffs on Chinese steel and aluminum, Ben writes.

Why it matters: Officials cast the move in economic but also climate terms. "American companies must lead the future of more sustainable steel," the White House announcement states.

Driving the news: U.S. workers face "unfair competition" from Chinese metals that are "among the world's most emissions-intensive," the White House said.

Axios' Hans Nichols has more.

The White House is also launching a wider push to make global trade more emissions friendly, Ben writes.

Why it matters: Climate aide John Podesta said the current system built to promote open markets is ill-suited to fighting global warming.

• It's an "elephant in the room" he said yesterday, calling trade a massive emissions source.

Driving the news: Podesta announced the White House Climate and Trade Task Force. Goals include:

• Addressing carbon "leakage" — industries moving from nations with strong climate policies to nations with weak ones.
• Ensuring credible data and creating of internationally recognized measurement standards.

Threat level: His comments at a New York energy conference listed several ways today's system doesn't work.

• "There is no penalty for what I like to call carbon dumping — when high emissions in production are exported back into countries with stronger climate policies," Podesta said.

The intrigue: Podesta called out China, noting its massive aluminum output creates 60% more emissions per ton than smelters in the U.S., where the industry has shrunk.

• And he complained that "well structured" U.S. clean tech incentives are subject to a Chinese challenge at the World Trade Organization.

Podesta also said the task force would "draw lessons" from ongoing U.S.-EU talks over a "global arrangement" on steel and aluminum.

What's next: Task forces are common in Washington, so let's see if this can truly make trade any greener.

Chevron's venture capital arm unveiled a new $500 million fund focused on climate-friendly tech, Ben writes.

Why it matters: It's Chevron Technology Ventures' largest fund to date and comes as oil majors are diversifying and under pressure to cut emissions.

The big picture: The Future Energy Fund III "aims to expand investment in the areas of novel low carbon fuels, advanced materials and transforming carbon to higher value products," the announcement states.

• It will also continue CTV's focus on areas like industrial decarbonization, mobility, and the "circular carbon economy."

What's next: CTV president Jim Gable said initial investments from the latest fund will be in the $1 million to $5 million range, targeting Series A through C rounds.

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🧠 The big Bezos Earth Fund will provide up to $100 million in grants for projects that leverage AI to address climate change and nature loss, Ben writes.

• Why it matters: AI plays an uncertain role in the fight against climate change.
• The big picture: There's excitement around applications like battery materials development and extreme weather forecasting — and concern that huge power needs make decarbonization harder.
• What's next: Applications for the first round open in May. Initial funding focuses on sustainable protein development, biodiversity conservation, and grid optimization.

💵 SOSV, an early stage climate tech investor, has closed its fifth and largest fund, raising $306 million, Axios Pro: Climate Deals Katie Fehrenbacher reports.

• Why it matters: The haul underscores the continued demand from institutional investors around climate tech, particularly for VCs with a history of returns.
• What's next: Focus areas include renewable energy, biomanufacturing and rare mineral processing, managing general partner Sean O'Sullivan tells Bloomberg.

⚔️ A Eurasia Group note tries to quantify how much specific types of conflict escalation will boost the existing geopolitical risk premium on oil prices, Ben writes.

State of play: Starting from a $90 per barrel Brent baseline, it estimates more attacks on Russian oil assets would add another $1.

• Increased attacks on Western oil tankers in the Red Sea is another $1, while attacks on Iraqi oil assets with "Western links" would add $1-$2.

Moving up the ladder:

• Stricter enforcement of U.S. oil sanctions on Iran adds $2-$3 if the tougher enforcement removes 500,000 barrels per day from the market.
• "Sporadic" attacks on oil tankers in the Strait of Hormuz would add $4-$5. An unlikely "full scale" Iran-Israel war adds $50 or more.

🇮🇷 Speaking of Iran, Reuters has a good analysis showing why the White House is unlikely to ramp up sanctions enough to greatly cut its oil exports, despite Capitol Hill pressure.

• The bottom line: There's strong motivation not to push up prices or worsen relations with China, a major buyer of Iranian oil.

China's crude oil imports hit a record last year, per a new Energy Information Administration primer, Ben writes.

Why it matters: The country is the world's largest oil buyer, so future versions of this chart will help show whether global demand is heading for a peak or at least plateau in coming years.

The big picture: EIA's primer also takes stock of geopolitically-driven market shifts. China's imports from Russia have jumped as Europe shuns Kremlin-backed barrels.

Russia accounted for almost 20% of Chinese supplies in 2023, displacing Saudi Arabia as the top source.