A climate tech startup Carbonx is supporting the carbon dioxide removal (CDR) market with a net set of data. The company announced on March 30th, the launch of a new data initiative that aims to improve the transparency of the CDR market information and encourage a better overall understanding of the carbon removal space.
According to Carbonx, the market needs more comprehensive and thorough data as many available datasets are incomplete given the immaturity of the permanent CDR market. It also points out that some core data points like specific price points or available removal supplies are missing altogether.
Publicly available data that is inconsistent can lead to further confusion or mixed messages in the market. Carbonx claims that clarifying, cleaning, and transparently publishing the CDR information while also adding helpful context can truly help the space and relevant stakeholders.
Carbonx’s CDR Market Overview tracked over 110 projects. The data shows the price of carbon credits for a ton of CO2 removed that the projects offer, is ranging between $100 and $2,054. 50% of the carbon removal projects are in the pilot stage while just 25% are in the commercialization phase.
Direct air capture as a CDR category has managed to raise the highest amount of investments so far – over $1.2 billion while enhanced weathering has raised $27 million. Direct air capture technologies also have the highest price range per ton of CO2 removed – between $350 and $2.054 followed by ocean alkalinity – between $200 and $1950.
Carbon removal methods need to scale exponentially to make the dent in eliminating carbon emissions that the world has to achieve. Over 6,4 million tons of carbon removal credits were purchased in 2022 but only around 500,000 tons of credits were delivered for that period. The industry needs to scale to deliver billions of tons annually in order to curb substantially climate change.