Approaches to removing carbon dioxide (CO2) from the atmosphere are referred to as carbon dioxide removal (CDR). Direct air capture (DAC) combined with durable storage, soil carbon sequestration, biomass carbon removal and storage, improved mineralization, ocean-based CDR, and afforestation/reforestation are just a few of the many methods that fall under the umbrella of CDR. Growth in the carbon dioxide removal market is being driven by increasingly favorable government policies for carbon removal, investments, and collaboration among market players.
There are various technologies used for carbon dioxide removal, namely, biochar, direct air capture (DAC), carbon mineralization, ocean alkalinization, and others (BECCS and microalgae). Among these technologies, biochar currently holds the largest share of the market. However, the growth of direct air capture (DAC) is expected to be the fastest during the forecast period 2022-2031. This is due to various investments being made across the globe, either by governments or private companies, as they have identified DAC as the most feasible technology to achieve net zero targets.
In the report, buyers of carbon removals are included, namely, finance sector, technology sector, and others (automotive, aerospace, and fashion). Among these, the growth of the technology sector on being the largest purchaser of carbon removal is expected to be the highest.
At present, North America is the prominent region toward the deployment of carbon dioxide removals, followed by Europe. Rising initiatives taken by governments for the development and deployment of carbon removal technologies are propelling market growth. CDR technologies have been identified as an important tool for achieving climate goals.
The finance sector is expected to be the largest carbon credit buyer during the forecast period 2022-2031. The growth of the finance sector is mainly driven by factors such as compliance, investment, carbon offsetting, and corporate social responsibility.
Among different types of technology, biochar led the carbon dioxide removal market in 2021. However, direct air capture is expected to have the highest growth during the forecast period. There are various investments being the done toward the deployment of DAC at scale in major economies across the globe.
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