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Purchasing durable carbon removals is quickly becoming a crucial part of corporate climate strategies, going beyond just emissions reduction efforts.
The Intergovernmental Panel on Climate Change (IPCC) now states that achieving net-zero greenhouse gas (GHG) emissions requires significant deployment of durable carbon removal technologies alongside immediate emissions reductions. All modeled scenarios to limit global warming rely on carbon removal¹.
While a company’s first priority should still be to reduce its own emissions, durable carbon removals are essential for any company looking to address its hard-to-abate, sometimes unavoidable, emissions. As the market develops, the business case for procuring carbon removal credits is increasingly strong, driven by financial, market-related, and reputational factors.
But first, for those less familiar – what actually is carbon removal?
Understanding carbon removal
Carbon removal refers to technologies, practices, and approaches that remove and store carbon dioxide (CO₂) from the atmosphere. Carbon removal is often confused with other carbon management technologies, including carbon capture and storage (CCS) and carbon capture and utilisation (CCU).
Of these approaches, carbon removal is the only one that addresses residual emissions in the atmosphere².
Carbon markets: avoidance vs removals
At its core, carbon markets differentiate between avoidance and removal credits. this can be broken down further into nature-based and engineered – or durable – solutions (See Figure 1).
Figure 1
Among these project types, durable (engineered) carbon removal is emerging as a critical asset class.
By investing in durable carbon removal, companies are acquiring credits with inherent additionality. At the same time, these solutions offer permanence, ensuring that the removed carbon remains out of the atmosphere for centuries – unlike many traditional credits that are at risk of reversal.
As it stands, there are five major durable CDR pathways on the market:
A growing market
The durable carbon removal market has significant momentum. In recent years, the amount of durable removals issued has witnessed a year-on-year growth exceeding 150% (see Figure 2).
Figure 2
And in 2025, the market has accelerated: the first half of this year recorded over twice the amount of durable carbon removal purchase agreements than the whole of 2024. In Q2 alone, more than 15,727 kt of durable carbon removal contracts were signed – a 233% year-on-year growth compared with Q2 last year (see Figure 3).
Figure 3
The business case for buying durable carbon removal
Against this backdrop, the business case for procuring durable carbon removal now, rather than later, is compelling.
1. Get ahead of regulation
Firstly, and perhaps most importantly, the scientific call to action from the IPCC is increasingly being echoed by regulatory signals.
Many companies have already set ambitious net-zero targets to align with various industry standards, notably the Science Based Targets Initiative (SBTi). As time goes on, these initiatives are evolving to include more stringent requirements for durable carbon removal.
In a landmark move, the European Union’s Carbon Removals Certification Framework (CRCF) now formally recognises and sets quality criteria for various durable carbon removal activities. These regulatory calls are further amplified by the upcoming Green Claims Directive, which will apply strict guidelines for all environmental claims. Going forward, to substantiate environmental claims, carbon credits must be independently verified and certified, with the CRCF defining the only Union-issued credits acceptable for compensating residual emissions. Pushing the durable carbon removal agenda even further forward, the EU is also actively exploring the integration of durable carbon removal into its emissions trading system (ETS).
In tandem, the United Kingdom and Switzerland are also adopting strict guidelines. The UK has set ambitious targets for removals, and its policies are designed to foster the growth of the industry. Similarly, Switzerland has enshrined net-zero targets into its law and is actively pursuing domestic and international durable carbon removal initiatives.
These developments, among others, signal a clear trajectory for the industry and reflect a market that is actively growing, driven by both climate necessity and regulatory alignment.
2. Secure future supply, lock in terms
The durable carbon removal market is nascent and supply is currently limited.
While the supply of credits is certainly increasing, it is being outpaced by a surge in demand. A study from McKinsey last year provides the proof: durable carbon removal demand could reach up to 100 million metric tons of CO2 (MtCO2) by 2030, double the 50 MtCO2 in announced supply³.
By entering into long-term purchase agreements early, companies can secure a future supply of credits in a structurally short market, lock in favourable terms such as a lower, fixed price and guaranteed supply, and provide the financial certainty that project developers need to scale their operations.
Acting too late could lead to higher costs and supply shortages down the line.
3. Protect your company's reputation
When it comes to carbon removal – and sustainability more broadly – company reputation is also on the line. Procuring high-quality, durable carbon removal allows a company to stand out from the crowd as a climate leader.
Over the past few years, some areas of the voluntary carbon markets have faced scrutiny for low-quality credits with questionable environmental integrity. By investing in high-quality, durable removals, companies are able to demonstrate the authenticity of their climate claims and mitigate the reputational and legal risks.
Taking this approach, companies can also attract top talent and reduce employee turnover costs. According to a study from Deloitte, as many as 69% of employees want their companies to invest in sustainability efforts⁴.
Durable carbon removal: a strategic imperative
In an evolving landscape of climate action, durable carbon removal has emerged as a crucial strategic asset. Scientific consensus, impending regulation, and market dynamics make a powerful case for proactive engagement.
By securing high-quality credits now, companies can not only fulfil their climate commitments, but also gain a competitive-edge. Investing in carbon removal is not just about offsetting emissions; it’s about future proofing your business.
Want to find out more? Please reach out to procure@climefi.com.
