CDR.fyi and Planet2050 have published the results from their collaborative survey called the Carbon Finance Pulse Survey, revealing key insights on the current financing state and challenges for durable carbon dioxide removal (CDR) developers.
Acknowledging that the issue of financing stands out as the main developmental hurdle for durable CDR, the survey was launched with the intent to unravel the most pressing challenges encountered by developers and to shed light on their financing expectations and future timelines.
To that end, the survey targeted only durable CDR project developers and suppliers, where CDR.fyi users and the participants in Planet2050’s Permanent CDR RFP were invited to take part and provide confidential answers.
As a result, the survey helped identify key financing gaps in the durable CDR sector, shaping specific financing interventions that could be helpful to CDR stakeholders.
One trend that emerged from the survey is the urgent near-term race to secure funds, where most CDR suppliers indicated they are working on raising funding in the next six months, and a portion of these suppliers will apply the means to stay operational and keep the current work staff.
Another evident tendency among suppliers is the focus on grants and subsidies, as these tools remain the most in-demand funding source despite recent pullbacks. This tendency suggests that many suppliers might be relying on funding that won’t be available at the needed pace.
The survey also points to the mismatch between the structure of traditional debt and venture financing and the realities of durable CDR development, where progress is delivered in long timelines, accompanied by upfront costs and revenue uncertainties.
Against this backdrop, the industry is seeing innovative financing structures that cater to durable CDR needs, but these solutions still remain rare.
Relevant: Users Can Now Explore The Market Through An Upgraded CDR.fyi Portal
Durable CDR developers are also facing a lack of so-called “middle layer” investors that back projects with amounts ranging between $1–5M, signaling a critical gap that causes projects to lag in the stages between proof of concept and scale.
Analyzing different financing aspects, the report offers practical takeaways not only for developers, but also for investors, buyers, and policymakers. This comprehensive market resource is available free of charge and can be accessed through this page.
Read more: CDR.fyi Points To Market Growth, With Nearly 15M Tonnes Of Contracted CDR By May 2025
