A new working paper published today, Overlooked Industrialisation Opportunity: How the Global South Can Leverage Carbon Dioxide Removal (CDR), argues that developing economies are positioned to become central players in the emerging carbon removal sector.
The paper is co-authored by Sebastian Manhart, Senior Policy Advisor at Carbonfuture, and Raphaël Cario, Energy and CDR Policy Consultant, with support from the University of Oxford’s TIDE Center.
The authors frame carbon dioxide removal as an indispensable pillar of global net-zero strategies, essential not only for countering residual emissions but also for addressing legacy atmospheric CO2.
The CDR sector has expanded rapidly since 2018, now surpassing 600 companies, growing at over 200% annually, and exceeding $10 billion in cumulative market value. Yet most activity remains concentrated in advanced economies, leaving significant untapped potential across the Global South.
Developing Regions Hold Majority of Global CDR-Relevant Resources
The report highlights that developing regions collectively hold 70-75% of global biomass residues, 65-70% of geological storage capacity, and extensive low-cost renewable energy potential, advantages that strongly position them to scale durable CDR approaches.
These include biochar carbon removal, bioenergy with carbon capture and storage (BECCS), direct air capture with storage (DACCS), and enhanced rock weathering.
Under plausible deployment scenarios of 1.5-5 GtCO2 per year by 2050, the sector could generate 3-9.5 million jobs and create $180-600 billion in annual value added – figures comparable to well-established industrial sectors in OECD economies.
Relevant: Nations’ Overreliance On Carbon Removal Could Undermine Climate Goals, Oxford Study Finds
Case studies from Bolivia, Brazil, and Kenya show how CDR projects can pair removals with rural employment, soil enhancement, improved air quality, and opportunities for technological upgrading.
As policy frameworks evolve, including the EU’s Carbon Removal Certification Framework and Article 6 of the Paris Agreement, the authors argue that aligning national policy, finance, and governance will be critical.
Positioned as a “green window of opportunity,” CDR offers a pathway for low-carbon industrialization that departs from extractive growth models while supporting durable mitigation and poverty alleviation.
Read more: Altitude And VCM Join Forces On Scaling High-Quality CDR In The Global South
