Carbon Dioxide Removal (CDR): Methods, Costs & Market Explained

Carbon Dioxide Removal (CDR) is the set of methods that take CO₂ out of the atmosphere and store it for the long term, in rock, soils, plants, oceans or products. It is different from cutting emissions: CDR reverses carbon that is already in the air. Last updated October 2026.

This guide explains how CDR works, the main methods, how much removal is needed, what it costs, who is buying it, and how to judge quality.

Carbon Dioxide Removal at a Glance

• Today: about 2 gigatonnes of CO₂ a year are removed, almost all through conventional methods such as forests and soils. New engineered methods remove only about 1.3 million tonnes a year, less than 0.1% of the total (The State of Carbon Dioxide Removal, 2nd edition).
• Needed: in the more sustainable scenarios the report reviews, the central range of CDR deployment is 7 to 9 gigatonnes a year by 2050.
• Market: contracts for durable CDR reached about 8.3 million tonnes in all of 2024 and about 8.5 million tonnes in the third quarter of 2025 alone, with Microsoft accounting for about 93% of that quarter's volume (CDR.fyi).
• Delivery gap: only about 84,000 tonnes of durable removal were delivered in that quarter, so most contracted tonnes are still to come.

What Is Carbon Dioxide Removal (CDR)?

CDR encompasses methods that remove legacy carbon already present in the air and store it in durable reservoirs, underground, in soils, or in long-lasting products.

Unlike carbon capture technology, which treats emissions at sources such as factories or power plants, CDR reverses accumulated atmospheric CO₂.

Removed CO₂ can be:

• Stored underground in geological formations or as mineralized rock
• Stored biologically in trees, soils or ocean systems
• Held in products such as some building materials, though these vary in how long they last

How CDR Works

1. Capture: CO₂ is taken from the atmosphere by biological, chemical or mechanical means.
2. Concentration or conversion: it is purified, or converted into biomass, biochar or mineral form.
3. Storage: it is locked away in a durable reservoir, with monitoring to confirm it stays there.

Methods can be nature-based (forests, soils) or engineered (like Direct Air Capture).

Main Types of Carbon Dioxide Removal

1. Direct Air Capture (DAC)
   • Captures CO₂ from ambient air using chemical filters or solvents. See the DAC guide.
   • Storage: deep geological formations or mineralization
   • Examples: Climeworks, 1PointFive, Sirona Technologies
2. Bioenergy with Carbon Capture and Storage (BECCS)
   • Generates energy from biomass and captures and stores the CO₂ produced.
   • Storage: geological reservoirs
3. Biochar and Bio-oil Storage
   • Biomass is converted to stable carbon (biochar) or bio-oil injected underground.
   • Storage: soils or underground, with durability from centuries to thousands of years for biochar
4. Enhanced Rock Weathering and Mineralization
   • Accelerates natural reactions in which rock binds CO₂ into stable minerals.
   • Storage: mineral forms, for a very long time
5. Forestation and Reforestation
   • Trees absorb CO₂ as they grow.
   • Storage: biomass and soil, which can be reversed by fire or logging
6. Soil Carbon Sequestration
   • Farming practices that increase soil organic carbon.
   • Storage: agricultural soils, harder to measure
7. Ocean-Based Carbon Removal
   • Approaches such as alkalinity enhancement that increase the ocean's CO₂ uptake.
   • Status: early stage, with ecological and measurement questions

Durable vs Non-Durable Removal

Methods differ in how long carbon stays out of the atmosphere. Durable removal such as DAC with geological storage, BECCS, enhanced weathering and biochar aims for storage over centuries or longer. Non-durable removal such as forests and soils may store carbon for decades and can be reversed. Both play a role, but buyers increasingly separate them when they set net-zero plans.

How Much CO₂ Needs to Be Removed?

The State of Carbon Dioxide Removal report says that in the more sustainable scenarios it reviews, the central range of deployment is 7 to 9 gigatonnes of CO₂ per year by 2050, compared with roughly 2 gigatonnes today, almost all of it from conventional methods. Novel methods will need to grow enormously, although CDR complements emission cuts rather than replacing them.

Benefits of Carbon Dioxide Removal

• Addresses residual emissions that cannot be eliminated
• Can offer durable, measurable storage for engineered methods
• Can combine with reforestation, soil restoration and ocean recovery
• Creates new industries and jobs (see Sirona's Remove CO₂ projects)

How Does CDR Differ From Carbon Offsetting?

Traditional offsets often fund activity that avoids or reduces emissions elsewhere, such as protecting a forest or building renewables. CDR removes CO₂ that is already in the atmosphere. Many corporate net-zero standards now treat removal as a distinct, higher-quality category. See how this plays out in Microsoft's climate goals.

How Much Does CDR Cost?

Cost varies widely by method. Nature-based and biochar approaches are generally cheaper per tonne than engineered methods, while DAC has historically cost several hundred dollars per tonne, with the lowest reported deal at $100 per tonne (Google and Holocene). Prices for individual deals are tracked on CDR.fyi.

Challenges and Limitations

• Cost and scale: engineered removal remains small and expensive
• Energy: most engineered methods need clean energy
• Verification and permanence: measuring and monitoring storage is complex
• Concentrated demand: one buyer accounted for about 93% of durable contracts in one recent quarter, so the market depends on a few large companies
• Delivery: contracted removal takes years to be delivered

How to Judge CDR Quality

• Permanence: how long the carbon stays out of the air, and what protects it from reversal
• Additionality: would the removal have happened without the funding?
• Measurement, reporting and verification (MRV): independent verification of tonnes removed
• Net removal: emissions from energy and operations are subtracted

Leading Innovators and Buyers

Technology companies:

• Climeworks and 1PointFive: direct air capture in Iceland and Texas
• Sirona Technologies: modular DAC in Kenya, the UAE and Norway
• Charm Industrial: bio-oil injected underground
• Heirloom and CarbonCapture Inc.: DAC suppliers to Frontier

Market enablers and buyers:

• Frontier (Stripe, Alphabet, Shopify, Meta, McKinsey Sustainability): an advance market commitment to buy permanent removal
• Microsoft and Amazon: major buyers of durable removal. See Amazon's climate goals

Is Nature-Based CDR Enough on Its Own?

No. Forests and soils are vital but have limited capacity and permanence, and fire, drought or land-use change can release stored CO₂. Long-term stability needs durable engineered removal alongside nature-based methods. Read our nature-based carbon removal guide.

The Future of Carbon Dioxide Removal

• Clean energy and storage networks built to serve removal projects
• Modular units that can be deployed close to storage
• Hybrid portfolios that combine biological and engineered removal
• Growing standards and registries for verified removal

Why CDR Matters for Corporate Climate Strategies

Companies including Microsoft, Stripe and Shopify invest in high-quality CDR to address emissions they cannot cut. This helps businesses:

• Show credible net-zero progress
• Fund innovation in durable storage
• Build trust with stakeholders and regulators

Smaller companies can take part too. Many providers sell removal in small quantities, so organizations do not need their own infrastructure.

Frequently Asked Questions About Carbon Dioxide Removal

What is carbon dioxide removal?

Methods that take CO₂ out of the atmosphere and store it in durable reservoirs.

What is the difference between carbon capture and carbon removal?

Carbon capture treats emissions at the source and prevents new emissions; carbon removal takes CO₂ that is already in the air out of it.

How much carbon removal do we need?

The State of CDR report puts the central range at 7 to 9 gigatonnes a year by 2050 in more sustainable scenarios.

Which carbon removal methods are most durable?

DAC with geological storage, BECCS, enhanced weathering and biochar aim for long-lived storage; forests and soils are less durable.

Who buys carbon removal?

Mainly large technology companies, with Microsoft the dominant buyer, plus Frontier members and smaller businesses.

Conclusion

Carbon dioxide removal is an essential pillar of climate action. Cutting emissions remains the first priority, but CDR addresses the CO₂ already in the air and the emissions that cannot be avoided.

For related insights, explore:

• Direct Air Capture (DAC) guide
• Carbon Capture Technology guide
• Nature-Based Carbon Removal guide
• Sirona Remove CO₂ Projects

Sources

The State of Carbon Dioxide Removal, 2nd edition and CDR.fyi: Q3 2025 durable CDR market update.