SBTi guidelines expected to spur carbon removal purchases

The carbon dioxide removal (CDR) market is growing at a limited pace, with most companies waiting for clear guidance from the SBTi’s updated Corporate Net Zero Standard before making purchasing decisions.

This is according to the 2025 CDR Market Survey conducted by Sylvera and CDR.fyi, a platform tracking the market for durable, technology-driven carbon removals such as biochar, enhanced weathering and direct air capture.

These technologies have been gaining increased interest, particularly from tech companies looking to offset an AI-driven rise in emissions over the coming years: at the end of 2024, the Frontier Coalition signed an US$80 million offtake agreement with two of these carbon removal firms.

The report shows that 11 million CDR credits were retired as of 2024 – compared to 200 million for nature-based carbon credits – and survey results suggest that this restrained demand is due to a lack of clarity around the expected durability of carbon credits in corporate decarbonisation standards.

“Corporate demand for durable CDR is closely tied to net-zero target-setting frameworks. In this survey, 65% of respondents identified clear net-zero standards (such as SBTi) as the main factor that would increase their motivation to purchase durable removals,” CDR.fyi notes.

The Science Based Targets initiative (SBTi) recently launched a dedicated working group on carbon removals as part of its Corporate Net Zero Standard revision, and clearer guidelines are expected later this year, potentially boosting demand for durable CDR credits.

CDR price barrier

Another issue limiting the growth of the CDR market is pricing. “High prices remain a significant barrier to wider adoption, with a clear gap between supplier expectations and what most purchasers are willing to pay,” the report notes.

Carbon dioxide removal credits currently sell at a range of US$150 to US$1,300 per tonne – far higher than nature-based credits, which still cost around US$10 per tonne, despite a recent price premium observed for those with the high-integrity Core Carbon Principles (CCP) label.

In CDR.fyi’s survey, 46% of buyers said lower prices and government policy support would incentivise them to purchase more durable CDR credits.

Still the proportion of CDR credits in overall carbon credit spending is expected to increase dramatically in the coming years, from a 6:1 ratio in 2025, to 1.2:1 by 2050. “The next five years will be pivotal,” the report adds. This may be because most suppliers expect durable CDR prices to decline as much in the next five years as over the following two decades – increasing accessibility and scalability.