• TD Bank Group will purchase more than 18,000 verified direct air capture carbon dioxide removal credits from Deep Sky over 10 years.
• The deal adds another major financial institution to the early buyer base for engineered carbon removals, a market still working to scale supply and verification.
• Deep Sky is moving from technology testing in Alberta toward commercial carbon removal development in Manitoba, positioning Canada as a growing hub for direct air capture.

TD Backs Long-Term Carbon Removal

Montreal and Toronto are now linked by a carbon removal deal with wider implications for Canada’s climate finance market.

TD Bank Group has signed a 10-year agreement with Deep Sky to purchase more than 18,000 verified direct air capture carbon dioxide removal credits. Financial terms were not disclosed.

The agreement gives TD access to engineered carbon removal credits from one of Canada’s most active direct air capture developers. It also gives Deep Sky another long-term corporate buyer as the company works to move from pilot operations to commercial-scale carbon removal.

For banks, insurers, airlines, technology firms, and heavy emitters, durable removals are becoming a growing part of long-term net-zero planning. They are not a substitute for emissions cuts. But they are increasingly viewed as a tool for addressing residual emissions that are difficult to eliminate.

The TD agreement also adds demand certainty to a market still defined by high costs, limited supply, and intense scrutiny over credit quality.

Deep Sky Moves From Testing to Commercial Scale

Deep Sky began operations at its first facility in Alberta in August 2025. The site is designed to test multiple carbon removal technologies under real-world conditions. That model gives the company a way to compare performance, energy use, durability, and cost before scaling selected systems.

The company has also announced plans to build a commercial carbon removal facility in southwestern Manitoba. That project could move Deep Sky beyond demonstration and into larger-volume credit delivery.

For Canada, the expansion matters. Direct air capture is energy intensive and capital heavy. It requires supportive policy, access to low-carbon power, clear carbon accounting rules, and credible storage or mineralization pathways.

Those factors are now central to whether countries can build domestic carbon removal industries. They also matter to corporate buyers. Executives need confidence that credits will be verified, durable, additional, and aligned with emerging disclosure expectations.

Deep Sky’s model reflects a broader shift in the market. Buyers are no longer looking only at avoided emissions or nature-based offsets. Many are adding engineered removals to portfolios because they offer clearer permanence claims. They also remain expensive, which makes long-term offtake agreements important for project finance.

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Carbon Credit Demand Expands Across Sectors

The TD deal follows Deep Sky partnerships with French power company Engie and airline Lufthansa. Those agreements point to rising demand across sectors with different carbon exposure.

For a bank, the relevance is both operational and strategic. Financial institutions face pressure to reduce their own emissions while also aligning portfolios with climate targets. Carbon removal purchases can support internal climate commitments. They can also help banks understand a market that may shape future financing, risk assessment, and client advisory work.

For airlines and energy companies, the stakes are more direct. Aviation has limited near-term decarbonization options at scale. Energy companies face mounting pressure from regulators, investors, and customers to show credible transition plans.

That cross-sector demand is important for carbon removal developers. A diversified buyer base can support project pipelines and improve investor confidence. It can also help establish pricing benchmarks in a market that remains opaque.

What Executives Should Watch

The Deep Sky and TD agreement comes at a time when voluntary carbon markets are under heavy examination. Buyers are facing more questions about quality, claims, and governance. Regulators and standard setters are also moving toward tighter disclosure expectations.

That creates both risk and opportunity. Companies that buy low-integrity credits may face reputational damage. Companies that secure high-quality removals early may gain access to scarce supply before demand rises.

For C-suite leaders, the message is practical. Carbon removal procurement now requires the same discipline as energy contracts, insurance coverage, or long-term infrastructure exposure. Credit quality, delivery risk, verification rules, and counterparty strength all matter.

For investors, the TD agreement is another sign that engineered removals are moving into bankable corporate procurement. The market is still young, but long-term contracts are becoming a key financing signal.

Canada’s role is also coming into focus. With Deep Sky testing technologies in Alberta and planning commercial development in Manitoba, the country is building a foothold in a sector tied to climate policy, industrial innovation, and future carbon markets.

The TD deal may be modest in volume. But its duration matters. Ten-year credit purchases give carbon removal developers the kind of demand visibility needed to scale. For global climate markets, that is where early corporate commitments start to become infrastructure.