Canada, carbon removal, and the crucial role of philanthropy

A guest post from Na’im Merchant, Executive Director of Carbon Removal Canada, on the Canadian CDR ecosystem.

Editor’s note: We achieved two firsts with our carbon removal purchase from Planetary Technologies a few weeks ago: our first project in Ocean Alkalinity Enhancement, and our first project from Canada. It felt both fitting and exciting to welcome this organization from our North American neighbor, given the amazing support we’ve had from Canadian CDR donors and enthusiasts since our early days, and our belief that Canadian CDR companies can play an outsized role in the global carbon removal solution. (Canadian companies Shopify and MaRs Discovery District also purchased from Planetary, further underlining the local ecosystem that’s emerging to support this crucial work.)

We invited Na’im Merchant—Executive Director of Carbon Removal Canada and part of Terraset’s Carbon Council—to share his thoughts on the essential role of early purchases and philanthropy in the success of Canada’s CDR sector. And we’re sure this first Canadian CDR purchase won’t be our last!

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At Carbon Removal Canada, we believe Canada is well-positioned to be a global leader in carbon removal. The country has significant natural resources (including the longest coastline in the world), massive sequestration potential, a skilled workforce, and an innovative ecosystem. In fact, we’ve mapped over 70 companies in the carbon removal supply chain in Canada, and it keeps on growing. Six of those companies raised $200M in 2023, according to CDR.FYI. And public support is growing for carbon removal, as we work to educate more stakeholders about the importance of this critical climate solution. 

After speaking with dozens of carbon removal technology companies and project developers, we heard one common theme: “R&D grants are great, but customers are better.” What they told us was that creating demand for carbon removal projects is what really moves the needle for companies to attract the capital necessary to scale. It’s that demand creation that has enabled other technologies like solar and wind to come down the cost curve – and what we need to replicate for carbon removal. That’s why we advocated for and were encouraged to see the Canadian government step up in a big way in its recent federal budget – allowing government departments to purchase carbon removal to address hard-to-abate emissions on their road to decarbonizing operations.

Terraset’s focus on bringing in philanthropic capital to support carbon removal companies creates yet another important demand signal for carbon removal companies at this critical stage in the development of this new sector. It not only helps us meet our climate goals, it has the potential to create inclusive economic growth. Last year, we commissioned a study that showed an at-scale carbon removal sector in Canada could create 89,000 jobs and add $143 billion to Canada’s economy by mid-century. Philanthropic support for carbon removal companies, and for the carbon removal ecosystem more broadly, will play an important role in helping us realize this massive potential. Because you can’t solve climate change without carbon removal.

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For those who don’t know us yet (particularly our friends in Canada), Terraset is a nonprofit that uses philanthropic capital to catalyze the nascent carbon removal industry. We collect tax-deductible donations from individuals, foundations, family offices, and donor advised funds, and make strategic purchases of permanent, high-quality carbon removal from innovative projects and companies.

Want to support Terraset from Canada? You can donate to support our work via CAF Canada—just select ‘Terraset Fund’ from their dropdown menu, or email us. CAF Canada fully complies with all Canada Revenue Agency regulations, permitting them to provide Canadian donors with a charitable tax receipt for any donations to Terraset.