A CDR purchase commitment network for Switzerland

Climate targets cannot be met without gigaton-scale Carbon Dioxide Removal (CDR). To achieve this, both innovation and demand need to increase drastically. So far, a few first-movers -- typically high-profit, low-emission organizations -- are leading the CDR market, often using it as a strategic move to position themselves as climate leaders. Meanwhile, a large group of early followers with lower profit-emission ratios but net-zero targets in the near to mid-future are considering entering the market. However, they frequently face various challenges.

So far, most CDR credit transactions in the voluntary carbon market (VCM) have been purchasing commitments. Insights from first-mover buyers show that early followers could significantly benefit from collaborating within networks to boost momentum and resource efficiency, especially through Purchase Commitment Networks (PCNs).

This study provides a detailed insight into the necessity of novel CDR methods and strategic benefits for Swiss actors to engage early on in CDR. A particular focus is set on the introduction and integration of PCNs in the Swiss context and the potential for the publicly owned company Swiss Post and PostFinance, its financial services subsidiary unit, to drive PCN development in Switzerland.

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