Diverse Demand for Carbon Dioxide Removal: Beyond Credits

Over 80% of the world’s carbon removal capacity currently relies on voluntary carbon credit purchases, but opportunities exist to expand demand through lower-emission products and co-benefits like waste management and wildfire prevention. Scaling these diverse demand signals – alongside credit purchasing – is crucial for sustained commercialization and deployment of carbon removal technologies.

This report highlights examples like Placer County, California partnering with Biochar Now to utilize wildfire reduction waste for carbon removal, and the US Forest Service collaborating with Charm Industrial to create bio-oil from forest thinning. These “flip-the-script” models, where CDR is a byproduct of another service, can tap into wider budgets and drive deployment. Furthermore, integrating CDR credits into Emissions Trading Systems (ETS) like the EU ETS and UK ETS, and supporting enhanced weathering for agriculture in countries like Brazil, are critical steps.

Ultimately, a diversified approach to CDR demand—spanning credits, differentiated products, and co-benefit applications—will unlock the investment and innovation needed to achieve meaningful climate impact.

---

Word Count: 263 words