10 Key Things to Know About the Carbon Dioxide Removals (CDR) Market

The Carbon Dioxide Removals (CDR) market is emerging as a vital player in the fight against climate change. Here’s a rundown of the key aspects you need to know:

What is CDR?

Carbon Dioxide Removals (CDR) refer to technologies and practices that extract CO2 from the atmosphere and store it. Unlike traditional carbon capture, which focuses on emissions from sources like power plants, CDR aims to reduce the overall concentration of CO2 in the air.

Why CDR is Crucial?

Despite efforts to reduce emissions, we are still on a path toward dangerous levels of global warming. CDR is considered essential to offset emissions we can't eliminate and to achieve net-zero emissions, helping to stabilize the climate.

Types of CDR Technologies

CDR technologies are varied, including:

• Direct Air Capture (DAC): Machines that chemically scrub CO2 directly from the air.
• Bioenergy with Carbon Capture and Storage (BECCS): Using biomass for energy and capturing the emitted CO2.
• Afforestation and Reforestation: Planting trees to absorb CO2 naturally.
• Soil Carbon Sequestration: Enhancing the ability of soils to capture and store CO2.

Market Growth and Investment

The CDR market is growing rapidly, with increasing investment from governments, private sector, and venture capital. According to BCC research report, the Carbon Dioxide Removals (CDR) Market is grown from $370.0 million in 2022 to $8.1 billion in 2028 at a compound annual growth rate (CAGR) of 31.0% during the forecast period to expand significantly, driven by climate policies and the urgent need to address global warming.

Economic and Environmental Benefits

CDR technologies offer dual benefits: they help mitigate climate change and can create new economic opportunities. For instance, developing and deploying these technologies can lead to job creation in the green tech sector.