The durable carbon dioxide removal (CDR) market experienced its strongest quarter ever in Q2 2025, per the CDR.fyi report. Companies bought 15.48 million tonnes of durable carbon removal credits. This almost doubles the total volume contracted in all past quarters combined.
This quarter’s figure exceeded the Q1 2025 total of 13.6 million tonnes and marked a major turning point for the market. Let’s discover the top buyers, suppliers, and what CDR methods are most in demand.
Microsoft the Megabuyer: One Tech Giant, Five Massive Deals
Microsoft dominated the quarter, contracting 14.6 million tonnes across five mega‑deals. These purchases accounted for 93.8% of Q2 volumes. The largest single deal was for 6.75 million tonnes from AtmosClear, followed by around 3.7 million tonnes from CO₂ Limited.
Other deals included contracts with:
Microsoft has bought nearly 25 million tonnes of durable CDR since late 2020. This accounts for about 79.5% of the total market volume, according to CDR.fyi.
Rising Stars: Non-Microsoft Buyers Step Up Their Game
Even excluding Microsoft, Q2 remained strong. Other buyers, not including the tech giant, purchased about 902,000 tonnes. This makes it the second-highest quarter for non-Microsoft purchases, just behind Q4 2024, according to CDR.fyi CSO Futures.
JPMorgan Chase accounted for 450,000 tonnes of BECCS and 50,000 tonnes of DACCS, representing about 63% of the non-Microsoft volume.
Other buyers were Wihlborgs (a Swedish real estate firm), City-owned Helsingborgshem, Frontier Buyers marketplace, Capgemini, Mitsui O.S.K Lines, SAP, and Wild Assets.
New players like Capgemini and Mitsui expanded the buyer base. They made purchases in various technical removal types and improved weathering.
Biochar Delivers, BECCS Leads: Tech Showdown in the Carbon Race
BECCS led technology choices in Q2, making up 86% of contracted volume. This included Microsoft and other buyers, according to CDR.fyi CSO Futures.
Biochar is a key player in biomass carbon removal solutions (BiCRS). It achieved strong delivery performance, making up 89.4% of the 116,800 tonnes delivered this quarter. Biomass direct storage and biomass geological sequestration added another 6.6% of deliveries.
BECCS is popular due to its high technology readiness levels (TRL 7–9), especially in Nordic countries where they have forest biomass feedstock. They also have strong energy markets and new CO₂ storage projects. For example, Norway’s Longship and Northern Lights facilities are part of this effort.
In terms of suppliers, biochar producers dominated the supplier leaderboard. Five of the top six suppliers are driving nearly 90% of contracted volume via large-scale BECCS or biochar projects.
Exomad Green held the top spot, delivering ~172,000 t and selling nearly 1.76 M t of biochar carbon removal (BCR) credits in total. Other leading firms included Aperam BioEnergia, Varaha, Wakefield Biochar, and Carboneers.
Together, they contribute significant delivery and contracted volumes via high-performing biochar methods. These recurring players show consistent performance and growing commercial traction in durable CDR.
Fewer Cheques, Bigger Bets: Why VC Funding Slowed While Deals Grew
While purchase volumes soared, investment funding cooled off. In Q2, just eight CDR companies raised $122 million, down from 24 companies and $137 million in Q1.
Direct air capture startups accounted for most fundraising. This slowdown reflects a maturing market where large corporate contracts play a bigger role than venture capital for project scaling.
The strong Q2 performance signals a turning point for durable CDR. It reflects both rapid growth in purchase activity and a narrowing gap between durable methods and nature-based removals.
A recent survey found that durable credits accounted for just 200,000 tonnes of retirements in 2024. In contrast, nature-based options reached 11 million tonnes.
Buyers want durable carbon dioxide removal volumes to equal or surpass nature-based credits by 2050. This will narrow the 6:1 ratio to parity by 2030.
Buyers want clear net-zero standards, solid business case validation, and lower costs to boost durable CDR demand. About 65% of companies surveyed said stronger net-zero frameworks, like those from SBTi, drive demand.
Many investors are cautious about unproven technologies and gaps in standards. However, the record Q2 shows that major buyers are eager to invest in removal methods. These methods align with their climate goals.
What Comes Next: Can Durable CDR Close the Gap with Nature-Based Offsets?
The global CDR market is now about $2 billion. Analysts expect it to grow to $50 billion by 2030. If favorable policies and buyer demand happen, it could surpass $250 billion by 2035. McKinsey and others estimate durable, engineered CDR could scale into a trillion-dollar sector by mid-century.
Yet, challenges still exist, including:
- Fragile market liquidity
- Different credit types that aren’t interchangeable
- Price uncertainty (durable carbon credits average about $180 per tonne, while nature-based credits average $35)
- Concerns about delivery risk and credit permanence
These issues affect the market’s stability. Survey data shows that buyers usually expect prices to be lower than what suppliers predict. This is especially true for non-biochar technical removals. Cost barriers are slowing down adoption.
Q2 2025 results marked a milestone: the durable carbon dioxide removal market grew faster than ever before. Microsoft’s anchor purchases and broader corporate engagement drove 15.5 million tonnes of contracted volume—more than doubling the market size in a single quarter. BECCS and biochar led in both scale and delivery.
Still, investment slowed, and adoption barriers persist. Companies cite the need for net-zero standards, cost declines, and clearer risk frameworks. But as large-scale contracts become more common, durable CDR is shifting from early promise to practical climate action.
