Market Overview: Carbon Dioxide Removal Technologies
14 Dec, 2023
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Executive Summary
As the voluntary carbon market (VCM) reels from unprecedented reputational damage, sustainability leaders have identified carbon dioxide removal (CDR) credits as a new investment opportunity for climate mitigation. Consequently, a raft of new technologies that seek to capture carbon directly from the atmosphere have emerged, representing attractive new opportunities for buyers. This report helps senior executives in charge of decarbonization and carbon credit procurement strategies understand the current state of the CDR technology landscape, and seeks to reveal the scalability potential of novel technologies as climate mitigation levers.
Carbon dioxide removals promise all the benefits of carbon credits without the risks
Carbon dioxide removal (CDR) projects aim for permanent emission reductions
CDR technology can play a pivotal role in reducing global warming
Corporate investment in carbon removals soars, amid volatile voluntary market conditions
CDR buyers face significant challenges to their efforts to drive permanent climate action
The carbon removal technology landscape
Direct air capture (DAC) is a new frontier for emissions action
Until 2030, DAC will be the highest-quality offset, but the smallest by volume
Enhanced rock weathering (ERW) technologies store carbon permanently across land and sea
ERW supports land-intensive industries
ERW requires significant methodological support to scale
Biochar carbon removal (BCR) durably stores carbon and enhances soil quality
BCR uses waste agricultural products to generate carbon offsets
BCR is a proven technology – but is far from industrialized
Nature-based carbon removal (NBCR) solutions are a mature option for credit buyers
Nature-based solutions provide significant opportunities for atmospheric carbon removal
Nature-based solutions are mature and bring significant co-benefits
Systemic challenges facing the CDR market will resolve by 2030
Carbon dioxide removal (CDR) projects aim for permanent emission reductions
CDR technology can play a pivotal role in reducing global warming
Corporate investment in carbon removals soars, amid volatile voluntary market conditions
CDR buyers face significant challenges to their efforts to drive permanent climate action
The carbon removal technology landscape
Direct air capture (DAC) is a new frontier for emissions action
Until 2030, DAC will be the highest-quality offset, but the smallest by volume
Enhanced rock weathering (ERW) technologies store carbon permanently across land and sea
ERW supports land-intensive industries
ERW requires significant methodological support to scale
Biochar carbon removal (BCR) durably stores carbon and enhances soil quality
BCR uses waste agricultural products to generate carbon offsets
BCR is a proven technology – but is far from industrialized
Nature-based carbon removal (NBCR) solutions are a mature option for credit buyers
Nature-based solutions provide significant opportunities for atmospheric carbon removal
Nature-based solutions are mature and bring significant co-benefits
Systemic challenges facing the CDR market will resolve by 2030
Figure 1. The reduction, removal and avoidance trifecta
Figure 2. CDR capture processes
Figure 3. CDR storage processes
Figure 4. CDR technology can play a pivotal role in reducing global warming
Figure 5. Corporate CDR purchases rise dramatically in 2023
Figure 6. The nature and engineered divide in CDR
Figure 7. CDR credit volume is inversely linked to storage longevity
Figure 8. Prominent DAC providers in 2023
Figure 9. Prominent ERW providers in 2023
Figure 10. Prominent BCR providers in 2023
Figure 2. CDR capture processes
Figure 3. CDR storage processes
Figure 4. CDR technology can play a pivotal role in reducing global warming
Figure 5. Corporate CDR purchases rise dramatically in 2023
Figure 6. The nature and engineered divide in CDR
Figure 7. CDR credit volume is inversely linked to storage longevity
Figure 8. Prominent DAC providers in 2023
Figure 9. Prominent ERW providers in 2023
Figure 10. Prominent BCR providers in 2023
International Biochar Initiative, Houston Astros, Meta, Silicate Carbon, Zendesk, South Pole, BlackRock, Lithos Carbon, Microsoft, Alphabet, Viridios AI, International Energy Agency (IEA), COmON Foundation, ECOERA, Greensand, Carbon Cycle, Verra, CarbonCapture, Removr, Airbus, TD Securities, Frontier, Charm Industrial, Stripe, CDR.fyi, Taskforce on Nature-related Financial Disclosures (TNFD), Carbon Recycling International, UBS, Carbo Culture, Land Life Company, Wakefield Biochar, Peugeot, UNDO Carbon, McKinsey & Company, The State of Carbon Dioxide Removal, Project Drawdown, Novocarbo Biochar, UN Intergovernmental Panel on Climate Change (IPCC), World Resources Institute (WRI), Shopify, Sylvera, InPlanet, Onnu, Vestre, UN Framework Convention on Climate Change (UNFCCC), Carbon Engineering, Carbofex, Ithaka Institute, BCG, JPMorgan Chase & Co., The Nature Conservancy (TNC), Nature, Climeworks, Klarna, EcoAct, Colt Technology Services, Albion Capital, Pacific Biochar, Occidental Petroleum, Softwire, Amazon, Carbfix, Ørsted, Houston Texans, Eion Carbon, Pledge, Swiss Re, Heirloom, US Environmental Protection Agency (EPA), 1PointFive, Puro.earth, European Biochar Certificate, Ebb Carbon
About the Authors
Connor Taylor
Senior Analyst
Connor is a Senior Analyst in the Verdantix Net Zero & Climate Risk practice. His current research agenda focuses on carbon management software, climate change consulting …
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Ryan Skinner
Research Director, Net Zero & Climate Risk
Ryan is the Research Director for the Verdantix Net Zero & Climate Risk practice. He guides the research team to develop compelling research at the intersection of net zer…
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