Swiss Re has agreed what it says is a world-first deal for the long-term purchase of direct air capture and storage of carbon dioxide, worth $US10 million ($13.76 million) over a decade.

It is partnering with Climeworks, a specialist in air capture technology which sees carbon dioxide either returned to earth and stored away for millions of years, or upcycled into carbon-neutral fuels and materials.

“The carbon dioxide literally turns into stone. This is considered the safest, most durable form of all carbon removal solutions that are commercially available today,” Swiss Re said.

The partnership gives Swiss Re access to new carbon removal industry risk pools and asset classes, “sending an important demand signal to developers, investors and other buyers”.

Swiss Re’s Group CEO Christian Mumenthaler says that to mitigate the risks of climate change, the world needs to scale-up carbon removal on top of emission reductions.

“By partnering with Climeworks we can play to our strengths in this endeavour, as a risk taker, investor, and forward-looking buyer of climate solutions” he said.

Climeworks’ technology filters carbon dioxide from ambient air using geothermal energy which is then sent for permanent storage in nearby rock layers. It is dissolved in water and pumped deep underground, where it reacts naturally with the surrounding basalt rock to form stable carbonate minerals.

It costs several hundred dollars per tonne of carbon dioxide removed and the insurer says larger, more economical air-capture and storage facilities can only be established via long-term purchasing agreements.

“The insurance sector is uniquely positioned to offer support through long-term purchase agreements, providing insurance capacity for evolving risk pools and investments in new asset classes,” it said.

Swiss Re has committed to achieve net-zero emissions in its insurance and investment business by 2050 and in its own operations already by 2030.