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.