The world faces an immense challenge: up to 687 billion tonnes of CO2 will need to be removed from the atmosphere by the end of this century, with 10 billion tonnes a year required by 2050. This monumental task makes it clear that carbon dioxide removal (CDR) technologies will be crucial to fighting climate change.
Why Do We Need CDR?
There are three key reasons why CDR must become an essential part of our global climate strategy:
Compensating for Hard-to-Abate Emissions: While many industries can decarbonize, some emissions are nearly impossible to eliminate entirely. These represent around 10% of global emissions, and CDR technologies are essential to compensate for these residual emissions.
Drawing Down Natural Emissions: Global warming exacerbates Earth’s own emissions through natural feedback loops, like forest fires and thawing permafrost. CDR technologies offer a method of drawing down these emissions, acting as a vital buffer in this feedback loop.
Reversing Historic Emissions: Since the industrial revolution, we've emitted more greenhouse gases than the planet can handle. To stabilize the climate, we need to actively remove some of these historic emissions from the atmosphere.
Key Takeaways for Corporate Climate Strategy
CDR is not yet a mature industry. Currently, the focus is on natural climate solutions (NCS), like afforestation and soil carbon sequestration, as they are affordable and readily available. However, engineered CDR technologies, though still in their infancy, will be critical for long-term carbon removal efforts.
Here's why CDR should be part of corporate climate strategies today:
In its Early Stages but Crucial: While engineered CDR technologies, such as Biochar, Direct Air Capture (DAC) and Bioenergy with Carbon Capture and Storage (BECCS), are underdeveloped, they are expected to contribute the bulk of future carbon removals. Investing in them now can stimulate their growth and scalability.
Leadership is Essential: A handful of forward-thinking buyers are already pioneering CDR solutions by making advance purchases of unregistered and expensive tonnes of CO2 removal. Their leadership is setting the stage for future scalability.
Act Now: "Wait and See" is Not an Option: Waiting for CDR costs to drop isn’t viable. Companies acting now help drive down future costs and secure their position in the carbon market. Early action ensures CDR technologies will scale in time to meet climate goals.
Why Companies Must Engage Now
Engineered CDR isn’t just a future option—companies need to start incorporating it into their climate strategies today. Early investments are key to making these technologies affordable and accessible for the future. By supporting the nascent CDR market now, companies can not only help scale the industry but also strengthen their own climate strategies by reducing long-term costs.
Check out the World Economic Forum's latest report on the subject, and consider how your company can begin exploring the potential of engineered CDR technologies now.