Carbon Removal Gains Traction as the Sector Moves from Vision to Viable Industry

Carbon removal is shifting from a theoretical climate tool to a practical business. Technologies that once lived in laboratories are now part of real commercial activity, and demand across Europe is increasing. Switzerland, long known for engineering depth and research strength, is becoming an active contributor to this emerging market. What began with a small team of engineers has grown into an industry with global relevance and economic potential.

Early ideas that set the foundation

Climate policy for decades focused on cutting emissions at the source through efficiency gains, renewable energy and process improvements. Removing carbon dioxide from ambient air was seen as speculative. The shift began when a group of young researchers at a technical university in Zürich explored whether machines could extract CO₂ directly from the air. Their work led to the creation of Climeworks in 2009.

Climeworks built successive generations of direct air capture machines and opened its first commercial plant in Hinwil. The concept gradually gained credibility. Carbon removal moved from a fringe idea to a recognised complement to emission reduction efforts.

A market that is now taking shape

Switzerland is now a contributor rather than an observer.

Climeworks operates modular collectors that trap CO₂ from the air and sells removal services to companies and individuals seeking to address unavoidable emissions. The firm has grown steadily and, in 2025, raised new equity that brought total funding to more than USD 1 billion. This level of capital signals investor conviction that carbon removal is becoming a real industry.

Corporate demand is also emerging. Swiss WorldCargo joined a pilot programme to offer carbon removal to clients by purchasing CO₂ removal services from Climeworks. The technology is now being used by actors in aviation, logistics and retail. The cleantech ecosystem is active and increasingly commercial.

Europe’s market expands and Switzerland participates

Across Europe the carbon capture and utilisation market is gaining speed. Industry estimates see the European CCU market reaching CHF 4’700 million by 2030, with a compound annual growth rate of 16.6 percent from 2025. The European CCS market was valued at more than USD 1’000 million in 2024 and is expected to expand throughout the decade.

Direct air capture remains a smaller segment, worth tens of millions of CHF in 2024, but growth forecasts exceed 60 percent per year from 2025 to 2033. For Switzerland this means rising demand for validated carbon removal services. With proven engineering and strong credibility, Swiss providers are well placed to serve European clients seeking high quality removals.

Economic implications reach beyond climate targets

The rise of carbon removal creates specialised employment in engineering, construction, operations and research. A scaled up sector would support jobs in cleantech, industrial services and facility management.
Investment flows offer a second benefit. The large fundraising round for Climeworks shows that global investors view Swiss carbon removal firms as credible long term bets. This strengthens the national startup landscape and reinforces Switzerland’s reputation for precision engineering.

Carbon removal also fits into Switzerland’s broader industrial transition. Companies must cut emissions to meet regulatory and voluntary targets, and residual emissions will require permanent removal solutions. This creates export opportunities for Swiss firms and integrates carbon removal into national climate strategies.

Signals to watch in the coming year

The next 12 to 24 months will test the pace of scale up. Climeworks plans to expand capacity and improve technology. More companies in transport, logistics, manufacturing and retail may commit to removal contracts. Visible corporate demand could attract further investment into the sector.

Regulatory developments in Europe may also influence growth. If carbon removal becomes a formal complement to emission reduction under emerging policy frameworks, verified removal services could see a rapid rise in demand. New Swiss startups may enter the market, exploring utilisation pathways, synthetic fuels or alternative capture techniques.

Supporting the companies behind the shift

Switzerland has favourable conditions to build a competitive carbon removal sector. Engineering capability, investor appetite and European demand are aligned. The moment is well suited for private and institutional investors who want measurable environmental impact and long term value creation.

CapiWell supports growth stage startups by helping them secure capital and develop strategies for expansion. Firms working on carbon removal or carbon utilisation can benefit from this support as the market opens and industrial demand increases.

Carbon removal is becoming a practical instrument of climate policy and an emerging industrial field. With companies such as Climeworks demonstrating what is possible, Switzerland is positioned to contribute meaningfully to global climate efforts while building a promising cleantech industry at home.