Will we have enough carbon removals? 

We need to remove excess carbon dioxide from the atmosphere and mitigate the harms of a dangerously warming planet — and we need to do it fast. But decarbonization is tough. 93% of companies say they’ll miss their net zero goals without serious intervention.¹ 

 

Carbon dioxide removal (CDR) technologies are recognized by the IPCC (Intergovernmental Panel on Climate Change) as necessary to achieve net negative CO₂ emissions, and the United Nations endorses carbon markets as an essential part of achieving the world’s climate targets.² Organizations should be doing all they can to avoid and reduce carbon emissions, but methods that remove historic carbon from the atmosphere are now needed rapidly, and at scale.  

Predicted demand for carbon removals is huge 

Researchers at the University of Oxford found that around 7–9 billion tonnes of CO₂ per year will need to be removed from the atmosphere by mid-century if the world is to meet the 1.5°C Paris Agreement target.³  

 

Only 3% of all projects issuing carbon credits over 2021 and 2022 YTD were pure removal projects,⁴ but according to recent research, the demand for engineered CDR by 2030 is projected to lie between 30.7-623 MtCO₂ per year, resulting in a total market size of $3.6– $56 billion.⁵ Indeed, demand in just the last few years shows there’s growing appetite for tech-based removal projects. To date, the voluntary carbon market has been dominated by nature-based solutions (NBS). But between 2021 and 2024, there was a 24% decrease in NBS purchases, while tech-based purchases grew by over 7000% in the same time frame. These purchases came from a small group of buyers, and show the growing demand for guaranteed, measurable CDRs.  This is a market where supply needs to expand rapidly. 

Growing demand from hard-to-abate sectors like aviation, steelmaking and manufacturing, supported by clear integrity standards, is drawing responsible companies and intelligent investors into carbon markets — this is good news. However, BeZero forecasts that the voluntary carbon market split between removals and offsets (avoidance/reduction) needs to shift from a split of 7/93% (removals/offsets) to 56/44% by 2030.⁷ High-quality CDRs could make up half of those 56% removals, making them integral to achieving net zero targets.⁸  

 

This requires a significant shift in the carbon credits market within a short space of time. While regulation and policy have a role to play in transitioning economies to a low-carbon future, more is needed. The engagement of the private sector will be critical to accelerating change and to supporting the voluntary carbon market and the early adoption of nascent, but highly impactful CDR technologies such as Direct Air Capture (DAC) and Bioenergy with Carbon Capture and Storage (BECCS).  

 

Why buy carbon removals now? 

To grow the CDR market at this critical time and get to the required CDR gigatonne scale before eating through the 1.5°C carbon budget, we need more businesses to step up and invest today.  

 

Organizations that embrace early entry into the market and buy credits are supporting the scalability of these new removals technologies, but there are other benefits too. Carbon prices are expected to rise as the deadline to meet net zero commitments increases. A convergence of voluntary markets with national markets and Paris Agreement markets could see prices rise faster⁹.  This means companies that buy CDR credits now and commit to future offtake agreements are well placed to beat this price hike and to secure a reliable future removals supply with a locked in price. 

 

Heavy industry, such as steel or petroleum production, is expected to rely on carbon removal technologies for future operations and decarbonization¹⁰. CDR technology that can use and store carbon is virtually the only technology solution for deep emissions reductions from cement production while long-distance transport, particularly aviation, has only a limited number of low carbon options available. New solutions that capture carbon emissions can support these hard-to-abate sectors.  

 

CDRs offer reputational and business benefits 

Multiple stakeholders, including regulators and increasingly aware customers, are pushing organizations to take more responsibility for tackling climate change. Investing in CDRs can form a key part of an effective risk management strategy to support corporate resilience and reputation, release stakeholder pressures on business and attract ESG-focused investors. It can also support wider business aims such as talent recruitment and retention, drive operational efficiencies, lower insurance costs, avoid investor rebellion and consumer rejection, and attract supply chain partners.  

 

Every business relies on a stable climate. The CDR technology being developed today has the potential to remove gigatonnes of carbon in the future. By acting early to support the carbon removals market at this critical time, responsible businesses are both recognizing the immediacy and scale of the climate crisis and helping to secure the long-term viability of their operations.  

 

Invest in the technology today that you will need tomorrow 

We need CDRs and we need the market to scale quickly. The carbon removals market is nascent, but demand is growing, and there are many advantages to investing now. At Elimini, we’re on a mission to transform carbon removals into a world-changing reality, delivering carbon removals at megatonne scale and 24/7 renewable power. We’re helping organizations achieve their sustainability targets by offering high-integrity, permanent carbon removals. Our engineered technology BECCS is a high-integrity CDR solution that also produces clean, reliable, around-the-clock renewable electricity.  

Find out how BECCS can help your organization meet carbon reduction goals.