PUBLISHER: Inkwood Research | PRODUCT CODE: 1568932
PUBLISHER: Inkwood Research | PRODUCT CODE: 1568932
As per Inkwood Research, the global durable carbon dioxide removal (CDR) demand market is expected to grow at a CAGR of 11.47% and 12.63% in terms of value and volume, respectively, during the period from 2030 to 2040.
The durable carbon dioxide removal (CDR) demand market focuses on the development and deployment of advanced technologies designed to capture and store CO2 from the atmosphere in a long-term and secure manner. Unlike temporary carbon sequestration, durable CDR solutions ensure that captured CO2 is stored in a stable way, preventing its re-entry into the atmosphere. Key technologies in this field include direct air capture (DAC), which uses chemical processes to capture CO2 from the air, and bioenergy with carbon capture and storage (BECCS), which combines biomass energy production with carbon capture and secure storage.
Durable CDR refers to methods that ensure long-lasting, verifiable removal of CO2 from the atmosphere. These approaches are critical in addressing residual CO2 emissions that persist despite reductions in other sectors. The increasing demand for carbon dioxide removal reflects the urgent need to mitigate climate change and reduce global atmospheric CO2 levels.
Key CDR technologies include geological storage, where CO2 is injected deep underground, and ocean-based carbon removal, which enhances the ocean's natural carbon uptake processes. The carbon removal dioxide (CDR) landscape encompasses a variety of methods aimed at providing long-term carbon storage, with direct air carbon capture and storage (DACCS) and biomass with carbon removal and storage (BiCRS) being key examples.
The outlook for the carbon removal market is positive as the need for durable carbon removal supply and demand continues to grow. The market is supported by both voluntary and non-voluntary carbon markets, which drive the demand for durable CDR credits and negative emissions technologies (NETs). These technologies are seen as essential for achieving net-zero emissions and addressing the ongoing demand for durable CDR. The demand for carbon reduction is a driving force, pushing for innovation and deployment of advanced CDR methods to meet global climate goals.
Key growth enablers of the global durable carbon dioxide removal (CDR) demand market:
The carbon dioxide removal (CDR) industry is seeing increased investment and funding from both the public and private sectors in response to growing concerns about rising CO2 emissions worldwide. This influx of capital comes from a range of sources, including government organizations, venture capitalists, and private investors, and is primarily directed towards research and development of new carbon removal technologies and enhancing existing CDR technologies. These financial contributions are essential for advancing the industry, enabling technological advancements, and supporting the development of innovative solutions that can help mitigate atmospheric CO2 levels.
Recent examples of significant investments in the CDR industry include the US Department of Energy's Fossil Energy and Carbon Management (FECM) branch, which announced a funding of approximately $35 million in September 2023 for projects aimed at removing CO2 from the atmosphere.
Additionally, in April 2023, Apple allocated approximately $200 million to develop nature-based carbon removal projects aimed at protecting and restoring critical ecosystems. These investments show increased engagement from various sectors in advancing the CDR market, highlighting its role in supporting climate initiatives and driving market growth.
Key restraining factors of the global durable carbon dioxide removal (CDR) demand market:
Insufficient mechanisms for monitoring, reporting, and verification (MRV) present a notable restraint in the carbon dioxide removal (CDR) market. Accurate MRV processes are essential to determine the actual amount of CO2 being removed from the atmosphere and to confirm the secure and long-term storage of this carbon. However, many CDR technologies currently lack consistent and standardized MRV protocols, resulting in discrepancies in data collection and analysis.
This inconsistency makes it difficult to verify the effectiveness of different carbon removal methods, which can create uncertainty and hesitation among investors, policymakers, and other stakeholders. Additionally, without effective MRV systems, there is a risk of overestimating the impact of CDR initiatives or misrepresenting their benefits, which can undermine the credibility of carbon removal efforts.
Global Durable Carbon Dioxide Removal (CDR) Demand Market | Top Trends
SEGMENTATION ANALYSIS
Market Segmentation - Sector -
Market by Sector:
The mobility sector, encompassing automotive, transport, airlines, and other related industries, is placing greater emphasis on durable carbon dioxide removal (CDR) technologies to manage emissions and move toward carbon neutrality. Carbon dioxide removal (CDR) methods, including direct air capture (DAC) and bioenergy combined with carbon capture and storage (BECCS), counterbalance emissions generated from fuel consumption and operational activities.
The automotive and transport sectors are major contributors to global CO2 emissions, with the automotive sector alone accounting for about 16% of global emissions and the overall transportation sector contributing nearly 24%. As a result, integrating CDR technologies with renewable energy sources is becoming a key strategy to manage these emissions more effectively.
For the aviation industry, which is responsible for approximately 2-3% of global CO2 emissions, CDR solutions are being considered to complement the use of sustainable aviation fuels (SAFs) and enhance carbon management strategies. The mobility sector is increasingly investing in CDR projects and partnering with technology providers to develop scalable carbon removal solutions that fit within existing infrastructure.
REGIONAL ANALYSIS
Geographical Study Based on Four Major Regions:
The carbon dioxide removal (CDR) market in the Asia-Pacific region is growing, supported by an increasing number of research institutions in countries like China, India, Japan, South Korea, and others that are focused on developing CO2 removal technologies. The involvement of these institutions in research and development activities is contributing to advancements in the field. Additionally, investments from chemical companies focused on achieving carbon neutrality are helping to drive the growth of the CDR market in the region.
For instance, in April 2024, South Pole and GenZero formed a partnership to establish the Asia Centre of Carbon Excellence (ACCE), a hub designed to bring together international experts focused on innovative carbon project development, capacity-building, and carbon policy. This initiative reflects the region's focus on enhancing carbon removal technologies. Additionally, several key market players, such as Greenovate Solutions Pvt Ltd, Gohemp Agroventures, Mitsubishi Heavy Industries, Sinopec, Caliche Inventions Private Limited, and Organic Ledger, are contributing to the market's growth.
Our market research reports offer an in-depth analysis of individual country-level market size and growth statistics. We cover the segmentation analysis, key growth factors, and macro-economic trends within the durable carbon dioxide removal (CDR) demand market, providing detailed insights into -
Major players in the global durable carbon dioxide removal (CDR) demand market:
Key strategies adopted by some of these companies;
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Frequently Asked Questions (FAQs):
A: Common types of CDR technologies include direct air capture, BECCS, ocean-based methods, and soil carbon sequestration.
A: The scalability of CDR technologies varies by technology; some, like DAC, are in the early stages, while others, like reforestation, are more mature.
A: Afforestation is planting trees on land not previously forested, capturing CO2 through natural photosynthesis.