The carbon dioxide removal (CDR) market saw impressive growth in 2024, with total purchased volumes reaching nearly 8 million tonnes, a 78% increase from 2023, according to cdr.fyi’s 2024 Year in Review. These figures are based on publicly disclosed purchases, meaning actual market activity could be higher. However, a key challenge remains: the delivery-to-booking ratio is only 4.4%, reflecting early-stage scaling difficulties in the industry.

BiocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More continues to play a critical role in durable CDR, with Exomad Green alone delivering 107,000 tonnes of CO₂ removal to date—making it a major contributor to fulfilled contracts. With total CDR deliveries up 120% year-over-year to 318,600 tonnes, biochar is a leading force in turning booked commitments into real climate impact.

Despite this growth, the buyer landscape remains highly concentrated. Microsoft, Google, Stripe, and Frontier accounted for 80% of purchases, while the number of unique buyers increased by just 7%. Alarmingly, first-time buyers declined by 18%, raising concerns about whether demand can keep pace with increasing supply. Only 36% of CDR suppliers have made sales, suggesting possible oversupply if new buyers don’t enter the market.

Investment trends add another layer of uncertainty. In 2024, durable CDR companies raised $836 million, down 30% from 2023. This signals a more cautious investment climate, likely tied to slow delivery timelines and buyer concentration.

For biochar firms, the path forward requires expanding the buyer base, securing long-term contracts, and advocating for supportive policies. If demand stagnates, market consolidation could follow. However, with its proven scalability and reliability, biochar remains a frontrunner in delivering real, permanent carbon removal.