It was yet another record-breaking year for pre-purchases of durable, engineered carbon dioxide removal (CDR) credits in the voluntary carbon credit markets, with sales reaching a new high in 2024. Demand from businesses for these high-quality credits continues to outweigh the supply, fueling the scale up of emerging carbon dioxide removal technologies. With the increasing overlap of voluntary and compliance carbon markets – such as mechanisms for Article 6.4 of the Paris Agreement – the business case for CDR technologies is solidifying. According to IDTechEx’s forecasting in the new “Carbon Dioxide Removal (CDR) 2025-2035: Carbon Credit Markets, Technologies, Players, and Forecasts” report, carbon credit market revenue from durable, engineered carbon dioxide removal technologies will exceed US$14 billion in 2035.
IDTechEx forecasts carbon credit revenue broken down by CDR technology over the next ten years. Source: IDTechEx
While nature-based CO2 removal is vital, billions of tonnes of additional engineered carbon removals will be needed to reach global net-zero targets by 2050. This includes technologies such as direct air capture (DAC), bioenergy with carbon capture and storage (BECCS), biochar, biomass burial, enhanced rock weathering, direct ocean capture, and ocean alkalinity enhancement. These CDR technologies are at a wide range of scales and technology readiness levels and generate revenue from voluntary carbon credit markets as corporations seek to address scope 3 CO2 emissions.
Direct air capture reaches the megatonne scale in 2025
DAC frontrunner Climeworks inaugurated the world’s largest direct air capture facility in 2024, capturing 40,000 tonnes per year of CO2 from the atmosphere. With the completion of 1PointFive’s Stratos facility in 2025, DAC will be catapulted to the megatonne scale. While large-scale facilities are driving down costs, over a hundred companies are now active in the DAC space, seeking further improvements to lower capture costs. With different sorbents, regeneration methods, and equipment designs being investigated, DAC continues to see significant public sector and private sector funding. By considering economics and energy demand, IDTechEx’s “Carbon Dioxide Removal (CDR) 2025-2035: Carbon Credit Markets, Technologies, Players, and Forecasts” report examines which direct air capture technologies are likely to see the greatest success.
Accelerating electrochemical methods of carbon dioxide removal
Many forms of durable, engineered carbon dioxide removal technologies have been scaling up because demand for high-quality carbon credits currently outstrips supply. One noteworthy trend is the growth in electrochemical CDR. Energy demand can often be a significant contributor to capture cost. In recent years, several start-ups have begun to develop electrochemical methods of carbon dioxide removal in search of increased energy efficiency and better compatibility with intermittent renewable energy sources such as wind and solar. Electrolysis and electrodialysis technologies are the frontrunners in the direct ocean capture space, and similar pH-swing electrochemical methods have seen increased investment interest for direct air capture. The new IDTechEx report analyzes the reality of electrochemical CDR – including economics, manufacturing and supply chain development, technical challenges, and key players.
Comprehensive analysis and market forecasts
IDTechEx’s “Carbon Dioxide Removal (CDR) 2025-2035: Carbon Credit Markets, Technologies, Players, and Forecasts” report assesses the CDR carbon credit market in detail, evaluating the different technologies, latest advancements, and potential adoption drivers and barriers. The report also includes a granular forecast until 2035 for the deployment of eight CDR categories (temperature-based DAC, electrochemical DAC, BECCS, biochar, biomass burial, direct ocean capture, ocean alkalinity enhancement, and enhanced rock weathering), alongside exclusive analysis and interview-based company profiles.
To find out more about this report, including downloadable sample pages, please visit www.IDTechEx.com/CDR.
For the full portfolio of energy and decarbonization market research available from IDTechEx, please see www.IDTechEx.com/Research/Energy.
About IDTechEx
IDTechEx provides trusted independent research on emerging technologies and their markets. Since 1999, we have been helping our clients to understand new technologies, their supply chains, market requirements, opportunities and forecasts. For more information, contact research@IDTechEx.com or visit www.IDTechEx.com.
