Carbon Dioxide Removal Market - 2023

In the face of escalating climate change, Carbon Dioxide Removal (CDR) has emerged as a critical strategy to meet global temperature targets. However, a significant gap exists between current CDR efforts and the scale required to achieve our climate goals. This blog post examines the current state of CDR, the challenges we face, and the path forward.

The Current State of CDR

Recent assessments paint a sobering picture of our CDR efforts:

• Conventional methods like reforestation are removing about 2,000-6,400 million tonnes (MtCO₂) per year.

• The CDR market has seen approximately 6.5 million tons of carbon purchased across more than 500 projects.

• Total expenditure in the CDR market stands at around $128 million.

While these numbers might seem impressive initially, they fall drastically short of what's needed to meet Paris Agreement targets.

The CDR Gap: What We Need vs. What We Have

To limit global warming to well below 2°C, or even 1.5°C, we need to remove hundreds of billions of tonnes of CO2 from the atmosphere over the coming decades. The discrepancy between this requirement and our current efforts is what experts call the "CDR gap."

Conventional vs. Novel CDR Methods

Conventional Methods

Land-based practices like reforestation currently dominate CDR efforts. These methods need to double by 2050 in 1.5°C pathways, requiring strong policies to protect forest sinks and prevent deforestation.

Novel Methods

Emerging technologies show promise but are still limited in scale: Data as at 2023

1. Bioenergy with Carbon Capture and Storage (BECCS)

   • Leading in CO2 purchase with 5,212,000 tons

   • Challenges: Infrastructure investment and competition for land use

2. Direct Air Capture (DAC)

   • 557,901 tons purchased

   • One of the most expensive CDR technologies, requiring up to 10GJ to capture 1tCO2

3. Biochar

   • 190,413 tons purchased

   • Produced by heating organic material in a low-oxygen environment

4. Bioil

   • 159,314 tons purchased

     
     

Challenges in Scaling CDR

1. Technological Barriers: Novel methods need further development to increase efficiency and reduce costs.

2. Geographic Distribution: Most novel CDR projects are concentrated in Europe and North America.

3. Data Availability: Limited data on lifecycle emissions and effectiveness of newer technologies.

4. Financial Investment: Current investment levels are insufficient for the required scale-up.

   
   

The Path Forward

To bridge the CDR gap, we need a two-pronged approach:

1. Scale-Up Conventional Methods

   • Implement policies to incentivize afforestation and reforestation

   • Strengthen efforts to minimize emissions from deforestation

     
     

2. Accelerate Novel Technologies

   • Invest in research and development to overcome technological barriers

   • Expand coverage to underrepresented regions

   • Implement stringent monitoring and verification systems

Conclusion

The fight against climate change is at a critical juncture. While reducing emissions remains crucial, scaling up CDR is equally important to achieve our temperature goals. The current gap between planned CDR efforts and the required scale is alarming, but it also presents an opportunity. By accelerating conventional and novel CDR methods and fostering the political will to support them, we can bridge the CDR gap and take significant strides toward a sustainable, climate-resilient future.

As we move forward, it's clear that CDR will play an increasingly vital role in our climate strategy. The challenge now is to rapidly scale these efforts to meet the urgency of the climate crisis.