- Surging demand for carbon removal credits across diverse sectors due to market-friendly incentives.
- Legislative initiatives like the US Inflation Reduction Act aim to boost the market through tax incentives.
Due to market-friendly incentives, demand for carbon removal credits is set to surge across diverse sectors. Experts argue that extracting CO2 from the atmosphere, whether naturally or technologically, is crucial to meeting UN climate goals.
Startups are deploying new technologies to generate tradable carbon removal credits, but widespread use is years away, and costs are high. Legislative initiatives like the US Inflation Reduction Act aim to boost the market through tax incentives.
Around 4.6 million tons of credits from various projects were purchased in 2023, but only a fraction was delivered and verified. A few firms are establishing standards for assessing these credits, with market leaders like Puro and Isometric leading.
Biochar dominated in 2023, representing 93% of delivered credits, with Puro leading in certifications. Puro plans to expand certification standards to include advanced technologies like rock weathering and chemical carbon capture.
Puro accounts for a significant portion of certified removal credits, doubling retirements in 2023. Puro’s CEO anticipates substantial growth in certifications this year, driven by companies like Bayer, Finavia, Microsoft, Telia, and JPMorgan.
This trend underscores the increasing recognition and adoption of carbon removal strategies in the global fight against climate change.