Octopus Energy Generation, one of Europe’s leading renewables investors, is ramping up efforts to slash CO₂ pollution at scale – inking a major US deal that will help remove up to 50 million tonnes of carbon dioxide from the air.
Octopus’s fund management team is set to invest $500 million in afforestation and reforestation projects in the US developed by public benefit and climate technology company Living Carbon.
On top of that, Octopus has put nearly $13 million into Living Carbon’s fast-growing, cutting-edge carbon removal development business.
With the new funding, Living Carbon will be able to remove up to 50 million tons of carbon dioxide over the next 40 years – roughly the same as eliminating the annual greenhouse gas emissions of New York City
Across the US, roughly 130 million acres of land lie degraded and could be reforested – that’s larger than the entire state of California.
Using next-gen satellite imagery and historical climate data to pinpoint the best sites for reforestation, Living Carbon focuses on land that would otherwise stay ecologically stagnant.
The locations include old mining sites and worn-out farmland, transforming these spaces into CO₂-absorbing sinks that slash emissions and combat climate change. These projects will also have a host of additional benefits: restoring wildlife habitats, improving water quality, strengthening soils, and supporting local economies in rural communities.
It comes as Living Carbon lands major carbon offtake agreements with Symbiosis Coalition members Google, Meta, and McKinsey.
Last year alone, the number of companies with net zero targets rose by 61% globally***, while companies committed to spend nearly $14 billion on future carbon removal projects.****
Zoisa North-Bond, CEO at Octopus Energy Generation, said: “This is a landmark deal for us in the US and a huge step in our mission to invest in solutions that drive the planet toward a cleaner future.
“Having industry leaders and the world’s largest tech giants backing these projects sends a powerful signal that the carbon removal market is ready to grow. Nature itself is a remarkable force for capturing carbon – by restoring these ecosystems, we can make a real difference for both rural communities and the climate.”
Maddie Hall, Founder and CEO at Living Carbon, said: “Our partnership with Octopus takes us from early-stage implementation to delivering long-term carbon removal at scale with institutional capital. This is a sign that this market is maturing into real project finance as corporate commitments to net-zero increase.”
This comes hot on the heels of Octopus increasing its investment to a total $100 million in nature-based solutions provider Cultivo to restore degraded grasslands in the US.
The latest deal pushes Octopus Energy Generation closer to its ambitious target of directing $2 billion into US clean energy by 2030, with a significant proportion in California’s world-leading clean tech scene.