In a newly published report, CDR.fyi shares data on the flow of durable carbon dioxide removal (CDR) investments over the past 5 years, painting a clear picture of the financial support provided through publicly announced equity and equity‑like rounds.
The Investment Landscape in Carbon Removal 2026 report, published last week, represents the most comprehensive analysis to date of the financing funneled into durable CDR.
As such, it considers information from announced financing rounds backed by venture capital, corporate venture capital, private equity, growth funds, and other private investors.
According to the report, in the period between 2021 and 2025, more than $3.6 billion in capital was invested in durable carbon removal (CDR) companies.
This amount is the result of an investment activity that accelerated rapidly from 2021 and peaked in 2023, transitioning into a two-year normalization period in 2024 and 2025 that came gradually rather than in the form of a sharp contraction.
With a perspective spanning several years, the report notes that currently, the durable carbon removal sector still remains in an early development stage in terms of structure, where most of the funding rounds announced to date are for Seed or Series A funding, while late-stage rounds are limited in number yet large in size.
Many of the CDR companies that secured financial investments achieved initial commercial traction, but a lesser number of companies managed to progress to actual carbon removal delivery and retirement, signaling bottlenecks beyond just funding needs.
Relevant: In A New Report, CDR.fyi & Planet2050 Reveal Financing Insights From Durable CDR Developers
For the analyzed period, the report highlights a concentration of capital, where fewer investors participated in a similar number of transactions in later years.
While Direct Air Carbon Capture and Sequestration (DACCS) emerged as the dominant pathway, accounting for the majority of deals made across the considered period, over time agreements diversified into other methods, even as total capital fluctuated year to year.
Looking ahead, the report notes that to be able to further scale their solutions, CDR companies will likely require backing via larger late‑stage rounds and/or capital originating from sources other than traditional venture funding.
Read more: New Report By BCG And DVNE Outlines How To Scale Durable CDR In Germany
