Carbon Dioxide Removal Market Size, Share, Growth, Trends, and Global Industry Analysis: Size, Share, Growth, Trends, and Global Industry Analysis By Technology Type (Biochar, Direct Air Capture, Enhanced/Carbon Mineralization, Ocean Alkalinization and others), By Carbon Credit Buyer (Finance Sector, Technology sector, Others) and Region Forecast 2019-2030

The carbon dioxide removal market size was valued at US$ 678.2 million in 2023 and is projected to grow at a CAGR of 12.3% from 2024-2030. Moreover, the U.S. market is projected to grow significantly, reaching a significant share by 2032. The market for carbon dioxide removal is anticipated to rise due to expanding government regulations, rising industry participant investment, and increased cooperation. However, some challenges impeding the market's growth include the high energy costs associated with some technologies and the absence of monitoring, reporting, and verification.

Key Takeaways

• The International Energy Agency (IEA) estimates that negative emissions technologies (including CDR) will contribute around 14% of global emissions reductions by 2050.
• By technology, in terms of various technologies, biochar dominated the market in 2021. On the other hand, during the projected period, direct air capture is anticipated to grow at the fastest rate.
• By carbon credit buyer, the finance sector is anticipated to be the largest buyer of carbon credits. Corporate social responsibility, investment, compliance, and carbon offsetting are the key drivers of the finance sector's expansion.

Key Players

The market share is inclusive of several companies such as Climeworks, Carbon Engineering, Global CCS Institute, LandLife Company, Pachama, The Nature Conservancy, Xpansiv, Verra, Gold Standard, Shell, BP, TotalEnergies, Charm Industrial, TerraPass, Heirloom Carbon Technologies, Carbon180, The Climate Trust, McKinsey & Company, Deloitte, Boston Consulting Group (BCG).

Facts & Figures

• Over 1,000 carbon removal projects were identified globally by March 2023, reflecting a significant increase in interest and investment in CDR solutions. (Source: Global Carbon Project).
• As of July 2023, the U.S. government announced $1.2 billion in funding for CDR technologies as part of its broader climate strategy. (Source: S. Department of Energy)
• By June 2023, the United Nations reported that around 90 countries had included carbon removal strategies in their Nationally Determined Contributions (NDCs). (Source: United Nations Framework Convention on Climate Change)

Key Developments

• In October 2022, In the US Permian Basin, Carbon Engineering Ltd. and Occidental Petroleum Corp. began building a carbon removal facility. With direct air capture technology, the plant would be able to extract 500,000 tons of carbon dioxide from the environment annually.
• In April 2021, Thermostat signed a contract to provide DAC equipment to the Chilean Haru Oni eFuels pilot facility. The plant will be used to produce synthetic gasoline by combining electrolytic hydrogen with carbon dioxide. The plant can absorb over 250 kg of CO2 per hour according to its design.

Carbon Dioxide Removal Market Segmentations

By Technology: Several significant sub-sectors of the carbon dioxide removal (CDR) market are experiencing strong growth, all of which can be attributed to pressing climate concerns and technological breakthroughs. Because it can improve soil health and use agricultural waste in a circular economy by sequestering carbon over an extended period, biochar is becoming more and more popular. The emergence of Direct Air Capture (DAC) technology can be attributed to its increased efficiency and scalability, which is reinforced by corporate pledges to achieve net-zero emissions and advantageous regulatory incentives. Accelerated mineralization speeds up the natural processes that turn CO2 into stable minerals, providing long-term storage options that are more and more appealing to the government and businesses. Inspired by the growing global interest in marine health, ocean alkalinization aims to prevent acidification and increase the ocean's capacity to absorb CO2

By Carbon Credit Buyer: The banking and technology sectors, among others, are the main buyers in the carbon credit market. To manage climate risks and achieve sustainability goals, the financial sector, which includes banks and investment businesses, buys carbon credits. This money is frequently used to fund offset projects. To reduce its emissions, the technology industry actively participates in the market by creating cutting-edge technologies like direct air capture. The "Others" category encompasses government institutions, non-profit organizations, and private customers who are progressively committed to endorsing environmental efforts and mitigating their carbon footprints