We report the palladium-catalyzed transformation of CO₂ and H₂ to formate at low pressure (2 bar) and ambient temperature in presence of a base. Palladium-hydride complex 1 was synthesized from its chloride precursor with NaH in THF. The ¹H-NMR spectrum shows a triplet at δ -3.40 ppm with a ²J_P-H coupling constant of 20.7 Hz. The formate complex 2 was obtained by exposing 1 to CO₂ as indicated by a triplet signal in the ¹H-NMR spectrum at δ 9.18 ppm with a ⁴J_P-H coupling constant of 1.7 Hz and a singlet signal at δ 166.6 ppm in the broadband decoupled ¹³C-NMR spectrum. After degassing of complex 2, addition of a base and application of a H₂-atmosphere regenerated the hydride complex 1, thus completing the proposed catalytic cycle. The formation of formic acid was confirmed by NMR and headspace GC-MS measurements after treatment with HCl.