Four Facts You Didn’t Know About Carbon Removal Technologies

We need to remove 6-10 billion tonnes of CO₂ from the atmosphere every year by 2050

Achieving this level of CO₂ removal is crucial for meeting net-zero targets as outlined in the Paris Agreement, which aims to limit global warming to well below 2 degrees Celsius above pre-industrial levels, with efforts to limit warming to 1.5 degrees Celsius.

To put this into perspective, the world currently emits approximately 37.4 billion tons of CO₂ annually​ (IEA), and emissions are still increasing each year. This means that by 2050, we need to remove roughly 16-27% of the total annual CO₂ emissions.

This analysis also makes clear that this growth in carbon removal technologies must take place alongside substantial action to reduce emissions. Without both of these, global temperatures will keep rising, resulting in devastating environmental and societal consequences. This poses significant risks to businesses, including disrupted supply chains and increased operational costs.

Currently, less than 0.1% of carbon removals result from novel technologies

Carbon removal technologies such as direct air capture, enhanced rock weathering, biochar and others, have immense potential to scale up carbon removal efforts. They provide additional pathways to sequester CO₂, thereby accelerating our progress towards achieving long-term climate goals.

To reach the thousand-fold increase needed by 2050, it is critical that carbon removal technologies begin scaling up now. Solutions currently at the demonstration or prototype stage require significant funding to rapidly scale. According to Science Based Targets Initiative (SBTi), “Supporting CDR innovation and R&D is needed now since the required amount of CDR in the second half of the century will only be feasible if we see a substantial capital deployment in the next ten years”.

Over 8,000 companies have committed to set Science Based Targets, but only 0.6% have purchased carbon removal technologies

There is a significant gap between corporate commitments and tangible actions. Over 8,000 companies, across a diverse range of industries, have pledged to set near term emission reduction targets through the Science Based Targets Initiative (SBTi).

But despite climate science telling us that these novel carbon removal technologies are needed, only 0.6% of these companies are investing in these technologies. This highlights a crucial gap: while many companies set ambitious targets, very few are investing in the technologies necessary to achieve global climate goals.

Bridging this gap requires increased awareness, incentives, and support for businesses to invest in effective carbon removal solutions.

Ten buyers have made 90% of all carbon removal technology offtake agreements

Ten major buyers have driven the demand for durable carbon removals, purchasing 91% of all volumes transacted between 2020 and 2023, mostly in the form of offtake agreements. If delivered, these offtakes will remove approximately 9.5 million tons of CO₂(CDR.fyi). The 10 buyers come from technology (Microsoft, Amazon, Alphabet Inc., Shopify,), service (The Boston Consulting Group), financial (JPMorgan Chase & Co.), and aviation (Airbus SE, The Boeing Co) sectors.

Microsoft alone accounts for two-thirds of cumulative purchases. The company has committed to purchasing over 2.7 million tons of carbon removal through deals such as with Ørsted, a global leader in renewable energy. This agreement involves technologies like direct air capture, bioenergy with carbon capture and storage (BECCS), and other advanced methods such as enhanced weathering, bio-oil, mineralization, and biochar production.

This concentration underscores the need for more companies across various sectors to engage in purchasing durable carbon removal solutions. Expanding participation will not only diversify the market but also enhance its overall growth and impact, making a more substantial contribution to long-term climate goals.

From the enormous volumes of CO₂ that must be removed from the atmosphere to the emerging technologies that promise to accelerate the process, the path forward demands urgent action and early movers. Whether you’re a climate strategist, policy maker, or business leader, embracing and funding these solutions is essential for achieving net-zero targets and tackling climate change.

By early engagement with a diverse mix of carbon removal solutions, including both conventional nature-based and technological approaches, we can ensure a more resilient and effective strategy against climate change. Learn about our Carbon Removal Technologies Program here.