With record breaking sales once more in 2024, the popularity of carbon dioxide removal credits continues to rise. As the industry speculates incorporation of carbon removals into broader compliance carbon markets such as the EU ETS will arrive post-2030, IDTechEx’s report “Carbon Dioxide Removal (CDR) 2025-2035” analyses key technologies, players, and carbon credit markets. Three important carbon dioxide removal solutions – all capable of generating carbon credits which businesses can purchase to reduce Scope 3 emissions – include biochar, DAC (direct air capture), and BECCS (bioenergy with carbon capture and storage).
IDTechEx’s Carbon Dioxide Removal (CDR) 2025-2035: Technologies, Players, Carbon Credit Markets, and Forecasts Report covers a range of technologies, players, and carbon credit market forecasts. Source: IDTechEx
Biochar:
Biochar is produced via pyrolysis of biomass, locking away carbon dioxide taken in by plants during photosynthesis. Carbon removal credits from biochar are already being delivered at a large scale, with players such as Exomad Green, Varaha, and Carboneers among the top sellers However, the economic benefits of biochar extend beyond the sale of carbon credits. Biochar can also improve soil properties, enhancing its productivity, resilience, and reducing fertilizer demand.
In terms of durable, high-quality, carbon dioxide removals, biochar carbon credits are often the lowest-priced. Even so, many carbon credit buyers prefer to purchase a portfolio that encompasses a range of carbon dioxide removal solutions. This is because different types of carbon credits have their own strengths and weaknesses. For example, biochar carbon removal credits may have some drawbacks relating to the duration of removals, additionality concerns, and limited ability to scale up.
DAC:
Direct air capture (DAC) involves chemical or physicals methods of capturing CO2 directly from the atmospheric air and locking it away geologically for thousands of years. Removals are highly verifiable, so buyers can have confidence in the high quality of these credits. However, the nascent technology requires specialized equipment and large amounts of energy, so remains expensive. Some DAC carbon removal credits sell for over $1000/tonne of CO2.
The biggest sellers of DAC carbon credits include 1PointFive, Climeworks, Heirloom, and Holocene. Two of these companies – 1PointFive and Holocene – are owned by Occidental Petroleum and use liquid solvents. In contrast, Climeworks and Heirloom use a solid sorbent based approach.
Direct air capture has significant scale-up potential. However, uncertainties remain. These include whether low-cost green energy sources will be readily available given rising competition from data centers, and whether strong financial support for DAC in the US will survive considering the Trump-era of uncertainty for climate technologies. While buyers are willing to pay a premium to foster promising DAC technologies for the time being as demand for high-quality carbon removal credits outstrips supply, costs will need to decrease to ensure the success of DAC long-term.
BECCS:
BECCS (bioenergy with carbon capture and storage) involves capturing CO2 from the flue gas of an industrial biogenic process (typically ethanol production or biomass combustion, hence the term “bioenergy”). Higher CO2 concentrations mean this process is less expensive than DAC but still has the same long-duration high-quality removals. BECCS is the largest scale durable, engineered CDR approach as of today.
In 2024 and 2025, a surge of interest in BECCS carbon dioxide removal credits emerged in the voluntary carbon credit markets. Microsoft, the biggest corporate buyer of carbon dioxide removal credits, signed the largest carbon removal deal ever in April 2025 for ~7 million tonnes of BECCS credits. The deal was with a company called AtmosClear and was reportedly worth $800 million. Further activity is expected as government support emerges for BECCS, with the US, Denmark, and Sweden already providing significant support.
Other carbon dioxide removal technologies:
Beyond biochar, DAC, and BECCS, other carbon dioxide removal solutions can range from planting trees (afforestation/deforestation) to harnessing the power of the ocean (ocean alkalinity enhancement, direct ocean capture, seaweed sinking). It is estimated that over 1 billion of tonnes of carbon dioxide removal each year will be needed in addition to Earth’s natural carbon sinks by 2050 to reach global climate goals. This will require many carbon dioxide removal technologies to scale up, and increased support from businesses and governments alike needs to come sooner rather than later.
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.
