Carbon Removal Becomes a Serious Business

Carbon removal has moved from a fringe idea to a field where companies, policymakers and investors are beginning to place real bets. The shift is visible in Switzerland, where early engineering experiments have evolved into commercial plants, updated legislation and rising demand for high-quality CO₂ removal. What began as a speculative technology is becoming part of the climate policy toolkit and, increasingly, part of an emerging industry.

A Technology Once Dismissed Finds Its First Footing

For years climate strategies revolved around cutting emissions at the source. Renewable energy and efficiency improvements dominated the political agenda, while the notion of extracting CO₂ from the air was treated as theoretical. That changed when two engineers at ETH Zürich decided to pursue the idea regardless of the scepticism. Their company, Climeworks, founded in 2009, set out to build machines capable of capturing carbon dioxide directly from ambient air.

The breakthrough came in 2017 with the opening of the first commercial direct air capture plant in Hinwil. The captured CO₂ supplied a greenhouse and later beverage producers, demonstrating that air capture could operate reliably outside laboratory conditions. For the first time the technology produced a marketable product, and Switzerland found itself home to the world’s first functioning DAC operation.

From Prototype to Policy Priority

As these early plants ran, the climate debate shifted. It became clear that even steep emission cuts would not be enough to meet long-term climate goals without removing some CO₂ already in the atmosphere. This scientific consensus set the stage for new legislation. In 2025 Switzerland updated its framework for carbon capture, removal and storage, defining incentives, standards and future requirements. The law now envisions several million tonnes of CO₂ being stored or removed annually by 2050, potentially covering up to 30 percent of today’s emissions.
Industry developments followed.

Climeworks expanded its offering of permanent carbon removal services to companies with net zero commitments, and demand from aviation, logistics and manufacturing began to grow. Research institutions stepped in to refine monitoring and verification methods, ensuring that removal claims are credible. A broader ecosystem emerged, anchored by the Swiss Carbon Removal Platform, which connects companies, researchers and policymakers.

A European Market Begins to Form

These Swiss developments unfold against a backdrop of rapid growth in Europe. The continental market for direct air capture was valued at around USD 34.4 million in 2024. Forecasts suggest revenues could reach USD 607.9 million by 2030, driven by a compound annual growth rate of more than 60 percent. Some projections extend into the billions by 2033, depending on regulatory support and corporate adoption.

Swiss innovation has contributed to that trajectory. As neighbouring countries explore carbon storage, utilisation and removal certificates, Switzerland’s early experience with DAC provides a technological and regulatory reference. The alignment between market growth in Europe and engineering capability in Switzerland is now becoming a competitive advantage.

Economic Consequences That Reach Beyond Climate Policy

The expansion of carbon removal is no longer only an environmental story. It is creating high-skill jobs in engineering, plant operations and data analysis. Companies such as Climeworks employ hundreds of people and maintain key engineering functions in Zurich. Capital is flowing into cleantech, reinforcing Switzerland’s position as a technology hub at a moment when many countries seek to strengthen industrial resilience.

A domestic carbon removal industry also increases Switzerland’s strategic autonomy. Instead of relying primarily on international offsets, the country can build local capacity to deal with residual emissions. For companies in hard-to-abate sectors, access to trusted, permanent removal services strengthens their ability to meet net zero obligations.

Why the Coming Year Will Matter

The legislative update of 2025 has set expectations. Companies that develop net zero strategies can now access clearer incentives, and several projects are expected to move from planning to implementation. At the same time demand for verified CO₂ removal is rising in Europe as compliance regimes tighten. These pressures are likely to accelerate the pace of investment.

Beyond direct air capture, new approaches such as biochar and enhanced weathering are entering the research pipeline. Swiss institutions are evaluating their environmental and technical viability, signalling a broader technological portfolio for the coming decade. The combination of market pull and scientific scrutiny may define which methods scale first.

A Moment for Investors and Builders of Industrial Capacity

For investors and innovators the timing is significant. Carbon removal is no longer an abstract idea but an emerging sector with clear policy support and growing market demand. Companies that scale today may become central to Switzerland’s long-term climate strategy and to Europe’s broader decarbonisation efforts.

CapiWell works with growth-stage cleantech firms by providing strategic guidance and access to capital. Through CapiWell, investors can participate in the expansion of companies shaping the future of carbon removal. These investments support industrial capacity, climate commitments and technological leadership.

Switzerland’s early experiments in direct air capture have matured into a credible industry pathway. As regulation settles and markets expand, carbon removal is becoming part of the country’s climate strategy and part of its economic landscape. The next few years will reveal how fast the sector can grow, but the direction is clear. A technology once confined to research papers is now a field of industrial opportunity.