In a new report released ahead of Climate Week NYC, Climeworks examines the carbon dioxide removal (CDR) market in North America, looking into buyers, project developers, and regulatory frameworks in the United States and Canada.
Going through the available market data, the publication outlines a number of trends evident in the CDR sector in this part of the world.
The report points out that North America remains the focal point on the global CDR map, and this market is the frontrunner in the world in terms of both CDR volume and value.
A broader perspective assessment shows that the market is growing into a new stage despite geopolitical factors causing uncertainty. Climeworks points out that buyer participation is broadening, standards are tightening, and organizations are increasingly focused on securing the right removals, with a rising interest in CCP-approved credits.
North American buyers are also becoming increasingly interested in local co-benefits from CDR, and future carbon removal supply might prove more limited than most buyers assume.
These observations, according to Marco Hartmann, Director of Carbon Partnerships and Portfolio Strategy at Climeworks, are signaling that organizations should begin building carbon removal capabilities today.
Buyers, solutions and CDR regulations in North America
When it comes to CDR purchases, the North American market is witnessing buyer activity from a range of different industries, led by the software and tech sector, which is followed by banking and finance, entertainment, AMCs, professional services, aviation, retailing and e-commerce, and lastly, consumer products.
In terms of types of solutions prominent in this region, looking at all-time CDR sold by local developers, the report shows that North America leads with BECCS and reforestation, which have each sold over 10,000,000 t from 2019 until today.
These two pathways are followed by other biomass CDR approaches, as well as direct air capture, biochar, enhanced weathering, marine CDR, mineralization, and alkalinity enhancement.
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The favorable regulatory frameworks that currently exist in the United States include the 45Q tax credit, California Cap & Invest, and California Cap & Invest, while in Canada, the country has rolled out the Carbon Capture, Utilization and Storage Investment Tax Credit (CCUS ITC) and is home to the Advance Carbon Removal Coalition.
Further, in-depth insights on the North American CDR market can be found in the full report, available here.
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