ClimeFi has reviewed the development of the durable carbon market in Q2 of 2025, noting unprecedented growth and upward trends.
The findings underline 2025 as the most prolific year to date for this decarbonization sector.
This year also marks more than twice the carbon removal purchases that were recorded in 2024, signaling strong demand and action by buyers.
Specifically in Q2 of 2025, the durable CDR market more than doubled in size, jumping from 13.5 million tCO2 to 29.2 million tCO2.
The amounts spent on CDR purchases further confirm the surging interest, as in Q2 of 2025, buyers spent approximately $3.9 billion on CO2 removal, topping the previous quarterly record by $2.8 billion.
When it comes to buyers, Microsoft holds the top spot as the most engaged CDR purchaser, having invested in 22.7 million tCO2 so far, a volume that makes up a striking 76% of the total market share.
Other companies followed this lead and actively bought carbon removal in Q2 of 2025, contributing to a 234% year-on-year growth when compared to the same quarter last year, a surge that doesn’t include Microsoft’s impact.
One thing that did slow down in Q2 of 2025 is the issuance of carbon removal credits, but ClimeFi also highlights that the fact that the credits that were issued came from different pathways indicates a maturing in CDR technologies.
To enable the scaling of this sector, experts have pointed out that carbon removal suppliers will need to reduce the prices and expenses related to their solutions and services.
In this domain, ClimeFi notes that in Q2 of 2025, pricing continues to vary, and it is affected mainly by differences stemming from CDR pathway, geography, and project maturity.
At the same time, equity financing remained available during this quarter, and the durable CDR market also saw signals of funding diversification, with emerging opportunities for debt financing—a sign reflected in the ClimeFi review as a symptom of a maturing carbon removal market.
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