All Access

Climate Deals

Standard

Climate Deals Thought Bubble

Thought Bubble

Climate Deals Alerts

Alert

mustard

BFD Expert Voices - Climate Deals

BFD Expert Voices

topics

politics-policy

epstein-files

donald-trump

2026-midterm-elections

immigration

behind-the-curtain

race-and-equity

technology

privacy-tech-regulation

automation-and-ai

tiktok-news

big-tech

social-media

cybersecurity

economy

social-security

inflation

tariffs

federal-reserve

jobs

transportation

business

stock-market-news

retail-news

crypto

media

elon-musk

dealmaking

health

rfk-jr

drug-prices

axios-explains-abortion

public-health

world

israel

axios-explains-ukraine

iran

russia

china

energy-climate

nuclear-energy

climate-energy-policy

climate-change

extreme-weather

alternative-energy

electric-vehicles

science

emerging-tech

biomedicine

newsletters

pittsburgh

atlanta

san-diego

charlotte

boulder

washington-dc

kansas-city

dallas

denver

detroit

des-moines

austin

boston

chicago

cleveland

columbus

houston

indianapolis

miami

nashville

new-orleans

nw-arkansas

philadelphia

phoenix

portland

richmond

salt-lake-city

san-antonio

san-francisco

seattle

tampa-bay

twin-cities

raleigh

huntsville

colorado-springs

axios-local

axios-pro

axios-live

the-axios-show

Carbon removal startup Climeworks has closed $162 million in financing led by Swiss investors, bringing its total funds raised to over $1 billion. 

Why it matters: Direct air capture firms have struggled as they've been hit with changes in U.S. federal support and high costs.

Zoom in: Climeworks said the equity round was led by BigPoint Holding, the investment group of Swiss billionaire Martin Haefner, and Swiss firm Partners Group, and included support from other existing investors. 

Climeworks said the round was "the largest carbon removal investment of 2025 to date globally." 

Prior investors include Microsoft, BCG and Morgan Stanley.

Catch up quick: Last summer Climeworks turned on its largest direct air capture facility in Iceland, called Mammoth. 

Climeworks was awarded support from the Biden administration for a DAC facility in Louisiana, but that funding is being questioned by the Trump administration.

Climeworks laid off staff in May following the federal uncertainty. 

Last year Climeworks also pivoted to sell carbon removal credits that come from all types of removal technologies, not just the direct air capture ones from its facilities. 

The big picture: DAC has come under increased scrutiny for its high costs, compared to other forms of carbon removal. 

Oil firms are investing in the tech as a way to lower their carbon footprints, turn CO2 into a commodity and use it for increased oil production. 

The reconciliation bill maintained carbon removal's tax credit, one of the few clean energy sectors to avoid the big beautiful bill's cuts. 

The bottom line: The world has changed for DAC, but oil companies and the federal government are maintaining some level of support. 

Climeworks raises $162M for carbon removal growth

The world has changed for DAC, but it's not all bad.

A large direct air capture facility called Mammoth built by Climeworks in Iceland

Climework's Mammoth direct air capture facility in Iceland started operating last August. Photo courtesy of Climeworks.

Carbon removal startup Climeworks has closed $162 million in financing led by Swiss investors, bringing its total funds raised to over $1 billion. Why it matters: Direct air capture firms have struggled as they&#x27;ve been hit with changes in U.S. federal support and high costs.

Climeworks raises $162M for carbon removal growth

What to read next