The carbon removal industry gets another confirmation of its rapidly accelerating growth. According to a Nasdaq Inc. executive, the carbon removal market is expected to take off within five years as industries rush to decarbonize and technology improves.
Right now, the world only removes and stores around a couple of hundred thousand tons of CO2 emissions a year, but according to Fredrik Ekstrom, who heads ESG at Nasdaq European markets, that number could grow to millions of tons by 2025-2027.
“There are many pilot projects ongoing that need funding and scale up… I would say the market will go from small to a more large-scale market by 2025-2027 because that’s where you start to see these really large scale opportunities,” said Ekstrom in an interview.
Nasdaq also set footing in the industry. Back in 2021, it acquired Puro.earth – a marketplace for carbon removal. This year, it launched the world’s first indexes to track the price of removing carbon dioxide from the atmosphere. The indexes will follow the price of carbon removal certificates (CORCs) issued by Puro.earth.
Via Puro.earth, Nasdaq has 55 global suppliers of removals and 200 more looking to issue carbon removal credits. It also counts more than 100 corporate customers.
Even though the CO2 removal market is expected to boom, the world still fails to deliver what is needed to curb climate change. The latest forecast from clean-energy research group BloombergNEF sees the amount captured around the world jumping sixfold by 2030 but that is still well below the gigatons capacity that is needed to scale almost immediately for the world to meaningfully impact climate change.