Carbon Removal Market Forecast: Insights from Industry Leaders
As carbon removal builds policy support and market traction, the sector is moving from the start-up phase to its scale-up chapter. New policy developments and rising buyer demand are propelling the sector forward. But important open questions remain about financing, additional policy support, and more.
The Carbon Business Council convened a press briefing featuring experts from across the carbon removal ecosystem — including policymakers, project developers, and market intermediaries. Together, they unpacked where the market stands, where it’s heading, and what it will take to scale the sector responsibly and effectively.
Below are the key takeaways from the conversation.
Jonathan Rhone, Co-Founder & CEO, CO280
As a leading project developer at CO280, Jonathan shared a supply-side perspective.
CO280 partners with pulp and paper mills to capture and permanently store biogenic CO₂ emissions. The result: low-cost, high-quality removals with major co-benefits for this industry and the rural communities in which they operate.
“These projects can scale to hundreds of millions of dollars in capital investment,” he said. “And they offer a new revenue stream for legacy industries—like pulp and paper—while revitalizing mills and towns.”
He emphasized that successful scale depends on long-term offtake agreements with creditworthy buyers, especially in sectors outside of tech. “We need to expand the customer base—and unlock the capital investment—to truly scale-up deployment.”
Noah Deich, Former U.S. Department of Energy Official
Noah brought a dual perspective to the panel, as both a policy architect during his time at the U.S. Department of Energy and an early advocate for carbon removal. He stressed the urgency of scaling deployment.
“Five years ago, carbon removal wasn’t even a polite conversation topic,” he joked. “Now, it’s central to climate strategy...We've come incredibly far even from five years ago.”
He pointed out that while the U.S. was once a global leader in carbon removal policy, other regions — particularly Europe — are quickly catching up. “The US was really far ahead of the rest of the world a few years ago when it came to all things carbon removal policy, that's not the case anymore.”
Deich is encouraged by what he’s seeing from both the private markets and the broader global conversation on carbon removal. He called on corporate buyers to “start small and start now,” and urged policymakers to focus on demand-side mechanisms to unlock scale.
Savvy Bowman, Program Director of Advanced Manufacturing & Carbon Innovation at ClearPath
Representing the policy lens, Savvy offered a wide-ranging overview of carbon removal’s growing bipartisan traction on Capitol Hill. As a policy expert at ClearPath — a conservative clean energy advocacy organization — she emphasized bipartisan support as a key accelerant.
“There’s been a proliferation of bills in both the House and Senate focused on carbon removal,” she noted, including efforts to fund soil carbon research and forest-based removal. Importantly, Savvy highlighted the ongoing evolution of the 45Q tax credit, calling it “one of the most effective tools for driving carbon management forward.”
She added that while U.S. policy is in flux, there are clear signs of “early seedlings of bipartisanship” that could help bring permanence and predictability to the sector.
Sebastien Dewarrat, Co-Founder & COO, ClimeFi
From the market’s front lines, Sebastien offered compelling data: the number of companies purchasing carbon removal has skyrocketed from nearly zero in 2022 to nearly 150 buyers globally today. "The number of corporate carbon removal buyers has grown from nearly zero in 2022 to close to 150 currently, with interest expanding beyond only the early movers."
Corporate demand is growing across sectors even amid a complex political backdrop, and newer industries like tech, pharma, and industrials are entering the market.
“Even without Microsoft, which accounts for more than 70% of all purchases, the market is still growing fivefold each year,” said Sebastien.
He also spotlighted ClimeFi’s role in a newly announced carbon removal program between Switzerland and Norway — one of the first to be formally recognized under Article 6 of the Paris Agreement. “It’s the first of its kind, a meaningful step for integrating carbon removal into national-level accounting and climate strategies.”
Sebastien’s remarks underscored a central tension: while demand is accelerating, supply — and capital to scale it — is lagging behind. Less than 5% of the carbon removals purchased to date have actually been delivered.
Looking Ahead: What’s Needed to Scale Carbon Removal?
As the session wrapped, each speaker was asked the same question: What’s most needed to accelerate deployment and investment?
Their answers formed a clear consensus:
Demand creation is key — through both voluntary corporate action and policy incentives.
Infrastructure must catch up — with permitting, storage, and transport systems.
New forms of capital — including non-dilutive and debt financing — are needed to complement grants and equity.
Global coordination — particularly through mechanisms like Article 6 and national carbon strategies — will define the next phase of market growth.
Carbon removal has never been more relevant — or more in need of coordinated, cross-sector action. As the market evolves, so too must the policies, financing tools, and partnerships that support it. With global interest accelerating and early proof points emerging, the next phase will be defined by how quickly and equitably we scale. The Carbon Business Council will continue convening experts and providing insight as this critical sector takes shape.
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