ClimeFi Carbon Removal Market Review Q2’25: Major Buyers & CDR Policies Take Shape

The global carbon dioxide removal (CDR) market saw record-breaking growth in Q2 2025, with total contracted volumes doubling from 13.5 to 29.2 million tonnes of CO₂. According to ClimeFi’s latest analysis, nearly 15.7 million tonnes were added in new contracts this quarter — a 233% year-on-year increase. Market spending reached $3.9 billion, driven almost entirely by biomass carbon removal and storage (BiCRS), which accounted for 99% of volumes.

EU Policy Tightens Rules On Climate Claims

One key policy development was the EU’s near-finalization of the Green Claims Directive. The regulation will restrict companies from using carbon neutrality claims based solely on offsets. Instead, firms must demonstrate direct emissions reductions and address residual emissions with certified removals under the EU’s Carbon Removal Certification Framework (CRCF). This shift is expected to reinforce demand for high-integrity, verifiable removal credits.

First Cross-Border CDR Transfers Under Article 6

Norway and Switzerland initiated the first international Article 6.2 transactions involving durable CDR. These pilot projects include bilateral credit transfers from geological storage and mineralization, coordinated in part by ClimeFi. A third project could involve direct CO₂ transport from Switzerland to Norway for permanent storage. These pilots mark a key milestone in operationalizing cross-border CDR markets.

Corporate Buyers Continue to Lead

Microsoft was the largest buyer this quarter, signing a 6.75 million tonne agreement with Atmos Clear and expanding deals with CO280, Stockholm Exergi, and other BCR CDR suppliers. Additional major buyers included J.P. Morgan and TikTok. Even excluding Microsoft, Q2 volumes were up 234% year-on-year.

Credit Issuance Slows, Financing Diversifies

Verified credit issuance slowed by 86% this quarter, though credits were issued across DAC, marine CDR, mineralization, and bio-oil. BiCRS remained dominant, with 85% of issuance. Prices varied widely, from $150/t (biochar) to $1,800/t (DAC). And private capital flows increased, with $182 million in equity and grants raised, alongside $78 million in XPRIZE awards. 

Outlook & Full Report

Q2 2025 underscores the acceleration of durable CDR as both corporate demand and regulatory clarity improve. Continued innovation in project finance and cross-border governance will be key to scaling supply in line with emerging climate claims rules and net-zero targets. The full report can be downloaded from ClimeFi here.

In other CDR news, Syncraft Founder Marcel Huber talks EU and USA expansion of his climate positive PowerPlants.