Barclays Bank has entered the green investment spotlight by signing its first major carbon dioxide removal (CDR) agreement with UNDO (website), a climate tech innovator specializing in enhanced rock weathering (ERW). This UK-led deal sees UNDO tasked with permanently removing 6,538 tonnes of CO₂ through its ERW process on 10,000 acres of farmland in Ontario, Canada, marking the largest ERW contract of its kind for a British supplier to date.
Details of the Barclays-UNDO Partnership
Under the agreement, UNDO, an XPRIZE-winning company, will spread finely crushed silicate rocks across Canadian farmland, accelerating natural chemical weathering to capture and store atmospheric CO₂. The project features an innovative pre-financing structure and is part of Barclays’ multi-year net-zero plan targeting its most emission-intensive operations. Barclays has already slashed its Scope 1 and 2 emissions by 95% and is now augmenting its decarbonization strategy with high-integrity, permanent carbon removal.
UNDO’s ERW technology not only addresses climate change but also delivers measurable benefits for soil health and crop yields, supporting agrarian communities while scaling up its global environmental impact.
Context: Green Investment Trends in 2025
The Barclays-UNDO deal comes at a time when the green economy commands a global market capitalization of $7.9 trillion, accounting for 8.6% of listed equity markets as of Q1 2025. Institutional interest in durable carbon removal is intensifying, driven by long-term net-zero commitments, regulatory developments, and the pressing need for scalable climate solutions. Banks and asset managers are increasingly channeling capital into clean technologies, nature-based solutions, and innovative financial structures, with annual global investments in climate action projected to reach up to $275 trillion by 2050.
Sector Implications
This partnership signals the mainstreaming of permanent CDR within financial strategies and underscores the evolving role of banks in shaping the carbon market. Such landmark agreements not only help corporates achieve residual emissions targets but also catalyze the scale-up of promising green technologies, positioning the finance sector as a proactive force in climate transition.
