Carbon removal project developer Deep Sky and power company Engie announced, encompassing covering carbon credit procurement, joint research, and market development, and including the purchase by Engie of up to 15,000 carbon removal credits from Deep Sky’s direct air capture (DAC) facilities. Founded in 2022, Montreal-based Deep Sky was established as a technology-agnostic carbon removal […]
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Engie Signs DAC Carbon Removal Deal with Deep Sky - ESG Today
Abatify Summary
Nature & Climate Perspective
**Direct Air Capture (DAC) projects like the Deep Sky-Engie deal provide high-permanence carbon sequestration that avoids the land-use conflicts and reversal risks inherent in traditional LULUCF projects. **
- DAC technology enables permanent geological storage, ensuring carbon is removed from the atmosphere for over 1,000 years, meeting the ICVCM 'Permanence' criteria.
- Unlike nature-based solutions, technical removals have a minimal surface footprint, reducing pressure on local biodiversity and land resources.
- The deployment of these facilities contributes to atmospheric decarbonization without the 'additionality' complexities often found in avoided deforestation credits.
Market & Policy Outlook
**This partnership accelerates the commercialization of high-integrity carbon removals necessary for Scope 3 abatement and alignment with SBTi's Net-Zero Standard. **
- The deal signals a maturation of the voluntary carbon market, transitioning from low-cost offsets to high-value, high-permanence removals consistent with ICVCM Core Carbon Principles (CCPs).
- Offtake agreements from major utilities like Engie provide the financial liquidity required to lower the Levelized Cost of Carbon (LCC) for emerging DAC technologies.
- Such technical credits are increasingly viewed as 'future-proof' assets for corporate compliance under evolving Article 6.4 mechanisms and sovereign carbon accounting.
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