From start-up to scale-up: a look to the future for carbon removal and 2025 in review
Carbon removal is maturing into a truly global industry - but one with local benefits.
Last year, we saw high-quality carbon removal projects take shape around the world, with nations jockeying for position to lead the industry. As carbon markets and investment tools grew more sophisticated, the sector crossed a major milestone: 1 million tons of durable carbon removal delivered. The year also brought progress on responsible deployment, integrated into existing industries and economies, and delivered benefits for people, communities, and the planet.
Now, it’s time to turn our attention to the future. The carbon removal industry will doubtlessly face new challenges, from emerging policies to economic shifts. But also many new opportunities. The lessons from 2025 provide a roadmap for what to expect - and what to prioritize - in 2026.
A Breakout Moment: The Global Carbon Harvest Coalition Launches
A significant formal outcome of COP30 was the launch of the Global Carbon Harvest Coalition. Co-led by Brazil, India, and Kenya, the coalition is a COP30 Action Agenda initiative explicitly focused on accelerating the deployment of biochar, enhanced rock weathering, and soil organic carbon across diverse geographies. With the launch, Global South leadership is centered, not peripheral, in shaping the trajectory of land-based carbon removal. Agriculture-aligned solutions gained coordinated political and technical backing, helping countries scale methods that deliver near-term benefits for farmers, soils, and rural economies.
…And the race is on to lead the carbon removal industry.
National policies and net-zero commitments are opening the door to global-scale growth. Around the world, governments are taking steps to claim the economic and climate benefits of being early leaders:
European Union: Announced commitment to cutting 90% of its emissions by 2040, pairing emissions reductions with carbon removal investment and high-quality credit trading.
Canada: Committed to procuring at least $10 million in carbon removal and moving toward finalizing pathway-specific protocols.
Japan: Updating its greenhouse gas trading system to require companies to offset excess emissions, positioning it as Asia’s second-largest carbon market.
2025 reinforced that demand-side policies such as procurement and tax incentives will direct where and how the sector grows. In 2026 and beyond, innovative models such as blended procurement (private offtake backed by public investment) can help accelerate CDR deployment and scale.
The U.S. remains a major contender
Federal and state support for carbon removal remains strong. The 45Q tax credit continues to encourage carbon management, keeping a pathway to commercialization open for U.S.-based CDR companies.
Carbon removal support also accelerated at the state level. The Massachusetts legislature launched a study of in-state CDR opportunities. Colorado published its Carbon Management Roadmap, exploring direct air capture, bioenergy with carbon capture and storage, carbon mineralization and other pathways to reach net zero. And in October, California passed legislation to advance carbon transportation infrastructure.
Private sector investment is increasing, and growing more sophisticated.
Over the past few years, the buyer pool has expanded significantly, now spanning hundreds of purchasers across sectors such as tech, banking, aviation and more. Corporate buyers are increasingly taking a portfolio approach:
Schneider Electric’s offtake agreement with Climeworks spans direct air capture, bioenergy with carbon capture and storage, and enhanced weathering.
The buyer group Frontier continues to diversify its portfolio with carbon mineralization, ocean alkalinity enhancement, and other pathways.
New tools, including carbon removal credit insurance, emerging project finance structures, and multi-sector buyer groups like TechGen, are lowering risk and opening more avenues for capital to enter the sector.
Combined with rigorous MRV standards, these market conditions put removals in a strong position to scale this year.
The sector continues to prioritize high-quality MRV and responsible deployment
Increasingly rigorous carbon removal standards are helping strengthen quality assurance for removals. Carbon removal companies and registries are gaining verifications to build trust among buyers, policymakers, and local communities.
Responsible deployment efforts also gained critical momentum. Initiatives like the Tribal Sovereignty in Carbon Removal Initiative and the World Resources Institute’s March report highlighted the importance of transparency, community engagement, and equitable development.
Recognition is growing that carbon removal is essential to meet the goals of the Paris Agreement.
COP30 marked the strongest recognition yet of carbon removal’s role in achieving global net zero, with the first-ever CDR pavilion hosted at the conference. As countries develop strategies to address the risks of a potential temperature overshoot, carbon removal is poised to play an even more central role in global climate policy heading into COP31.
Collaboration across the global carbon removal ecosystem remains essential.
The carbon removal sector is not a monolith, but the field shares common priorities. To increase public and private investment, the sector must continue coordinating across pathways, geographies, and stakeholder groups.
One clear opportunity is aligned communication. Awareness of CDR remains limited globally. Consistent, shared terminology and clear narratives, delivered through trusted messengers such as journalists, academics, and community leaders, are essential for building understanding and support. Collaboration will also remain crucial across policy development, ecosystem building, and responsible deployment.
2026 has the potential to be transformative for global carbon removal. The Carbon Business Council will continue advancing responsible, tech-inclusive deployment and scaling a global carbon removal ecosystem that strengthens local economies, benefits communities, and contributes to a healthy future for the planet.
