Carbon dioxide removal - statistics & facts
Carbon dioxide removal (CDR) is emerging as a crucial tool for meeting global climate goals. In fact, the Intergovernmental Panel on Climate Change includes CDR in nearly all scenarios in which global temperatures are limited to 1.5 or two degrees Celsius. Currently, some two billion metric tons of carbon dioxide are removed annually. However, with an estimated seven to nine GtCO₂ needing to be removed annually by 2050 to meet climate goals, many challenges lie ahead in developing the industry.
As of 2023, the selling prices for CDR were significantly cheaper for nature-based solutions than novel methods, with afforestation averaging 16 USD/tCO₂, compared to 300 and 715 USD/tCO₂ for BECCS and DAC, respectively. Factors like increasing funding will be needed to drive down the costs of novel CDR.
Reducing emissions is the primary way to achieve net-zero, but CDR has a critical role to play. There is progress being made with CDR technologies, but with the industry still very much in its infancy, and mid-century targets far off, it will need to expand more rapidly than it currently is.
What is carbon removal?
CDR is the process of removing CO₂ from the atmosphere and durably storing it away for decades or centuries on land, in the ocean, or in geological formations, thereby reversing anthropogenic emissions. There are currently a range of CDR methods available, from nature-based solutions like afforestation and reforestation to novel CDR methods that rely on the use of technology. These include bioenergy with carbon capture and storage (BECCS), biochar, and direct air capture (DAC). Currently, the majority of removals come from conventional nature-based solutions, with novel CDR approaches contributing less than 0.1 percent of the total.The state of the CDR market
The global CDR market is growing at a fast pace, with the cumulative number of CDR purchases rising from less than 150 metric tons in early 2020 to 11 million metric tons by mid-2024. But while global sales have increased sharply in recent years, only a small fraction of those CDR purchases have so far been delivered, mainly due to the long-term nature of the contracts. Still, annual CO₂ removals from novel techniques have more than doubled since 2020 to some 1.35 MtCO₂, with biochar the largest contributor.As of 2023, the selling prices for CDR were significantly cheaper for nature-based solutions than novel methods, with afforestation averaging 16 USD/tCO₂, compared to 300 and 715 USD/tCO₂ for BECCS and DAC, respectively. Factors like increasing funding will be needed to drive down the costs of novel CDR.
Investments in CDR are growing
Funding for the CDR industry is essential for scaling up production, and a growing number of international governments are now investing in CDR research and development. The private sector is also raising funds, with many major companies across various sectors having spent billions of dollars purchasing CDR credits to offset their emissions and achieve climate goals. Microsoft, in particular, has become a key player within the industry, having purchased more than eight MtCO₂ of removals to date from companies such as Ørsted, Stockholm Exergi, and Climeworks. The latter switched on the world’s largest DAC plant in 2024.Controversies surrounding CDR
While CDR is recognized by many as a key tool in the fight against climate change, scientists are divided about the technology. Novel CDR is still very much in the early stages, which has led to organizations such as the United Nations to cast doubt on their ability to fight climate change, calling the sector unproven at scale with unknown risks. Some have also suggested that an overreliance on CDR is a dangerous distraction from reducing emissions, further delaying the deployment of proven low-carbon technologies and allowing industries and companies to carry on emitting as usual.Reducing emissions is the primary way to achieve net-zero, but CDR has a critical role to play. There is progress being made with CDR technologies, but with the industry still very much in its infancy, and mid-century targets far off, it will need to expand more rapidly than it currently is.
