New Report Explores the Carbon Dioxide Removal (CDR) Market Potential
The Carbon Dioxide Removal (CDR) sector has experienced growing corporate interest and swift development, with record investments over the past year in technologies that draw carbon dioxide (CO₂) from the atmosphere. The new IDTechEx report, “Carbon Dioxide Removal (CDR) Markets 2023-2040: Technologies, Players, and Forecasts“, analyzes the nascent CDR market, discussing the limitations and potential of Negative Emissions Technologies (NETs) to address climate change.
CDR comes into the climate picture to address two key aspects that emissions reduction technologies such as renewable energy cannot: (1) the already high CO₂ accumulation in the atmosphere and in the oceans, and (2) the restoration of anthropogenically disrupted ecosystems, particularly their ability to act as carbon sinks. Endorsed by the latest IPCC report, carbon removals have been recognized as essential to a decarbonization portfolio that meets the Paris Agreement goals, although questions remain on the quantity needed and the most cost-effective options.
Shedding light on such questions, the latest IDTechEx report explores the diverse array of approaches to carbon removal being developed, from nature-based to engineered solutions, the latter including Direct Air Carbon Capture and Storage (DACCS) and Bioenergy with Carbon Capture and Storage (BECCS). The natural CDR solutions evaluated in the report include land-based CDR (afforestation/reforestation, biochar, bio-oil, and soil carbon sequestration), mineralization-based CDR (enhanced rock weathering, carbonation of mineral wastes, and oxide looping), and ocean-based CDR (enhanced ocean alkalinity, ocean fertilization, macroalgae, ocean direct capture, artificial upwelling/downwelling, and coastal blue carbon).
IDTechEx’s new report contains an in-depth analysis of CDR technologies and their latest advancements, as well as business models, policy framework, and potential adoption drivers and barriers. IDTechEx’s analysis suggests that, with the proper incentives, the global Carbon Dioxide Removal capacity can exceed the gigatonne scale of CO₂ removal by 2040, with multiple approaches that are modest today gaining significant market share in the coming years.
The report assesses the role of CDR approaches in offsetting carbon-intensive anthropogenic activities. As part of an emerging field, CDR solutions still require significant research, development, and demonstration to ensure CO₂ is removed effectively, affordably, durably, and at scale. Despite being an early-stage market, CDR is expected to make a dent in global warming mitigation in the decades to come. This sense of urgency has brought dynamism and investments to the sector, with multiple companies, research institutes, and policymakers collaborating to advance the technologies and the conditions for market consolidation.
IDTechEx’s report “Carbon Dioxide Removal (CDR) Markets 2023-2040: Technologies, Players, and Forecasts” contains the following information:
