ClimeFi has released a new report analyzing carbon removal market data from the first quarter of 2025.
The report shows a steady market growth, with a 32% increase evident in a year-on-year comparison with Q1 of 2024.
With a total of 700 kilo-tonnes (kt) of CDR contracts signed and 267 kt of credits issued, Q1 marked the biggest number of purchases recorded in Q1 of a year so far.
Biomass carbon removal emerged as the preferred technology by buyers, with 268 kt of credits purchased, while marine CDR (mCDR) ranked as the second most popular, with 230 kt of purchased credits, making Q1 of 2025 the most successful quarter so far for this approach.
The CDR market experienced a big breakthrough with the inclusion of carbon removal in the revised version of the Corporate Net Zero Standard released by the Science Based Targets initiative (SBTi).
Under the new version of the standard, companies now have three pathways for integrating CDR into their corporate climate target strategies.
On the buyer front, besides the already established purchasers, the ClimeFi report also reflected the appearance of promising new buyers like TikTok, signaling a market step in the right direction, as new buyers are considered crucial for further sector development.
Purchase deals centered around mCDR, biochar, bio-oil, direct air capture (DAC), and enhanced rock weathering (ERW) technologies.
Relevant: CDR.fyi Shares A 2024 Overview Of The Durable CDR Market
A few CDR agreements stood out in size during Q1 of 2025, including the largest-to-date mCDR deal, signed between Gigablue and SkiesFifty, as well as Google’s biochar-based 100 ktCO2 deal with Varaha and 100 ktCO2 bio-oil-driven carbon removal agreement with Charm Industrial.
For Google, Q1 of 2025 is the third quarter in a row in which the corporation has purchased more than 100 kt of durable carbon removal.
Other significant Q1 developments include the final investment decision on Stockholm Exergi’s planned BECCS facility. The company garnered $1.8 billion in support from the Swedish government, which emerged as the leader in public funding initiatives.
In regard to private funding, DAC technology remained the most preferred option, attracting $72.5 million in investment during this time.
Read more: New Puro.earth Report Shows CDR Market Growth Led By EMEA And The Americas
