CDR.fyi, a leading data platform for the carbon removal market, and OSCAR (Open Standard for Carbon Removal) have launched a new global market survey focused on durable carbon dioxide removal (CDR) contracting. This initiative aims to gather detailed insights from buyers, suppliers, and intermediaries involved in the procurement of high-persistence carbon removal, including biochar-based sequestration. By analyzing current contracting practices, the partnership seeks to shed light on the structural nuances of the voluntary carbon market. The survey serves as a collaborative effort to bring transparency to a sector that has historically operated through fragmented, private bilateral agreements across various international jurisdictions.

The primary challenge addressed by this initiative is the lack of transparency and standardization in durable CDR contracting, which creates significant friction for market participants. As the 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 industry scales, the absence of clear benchmarks for contract terms, pricing structures, and risk allocation mechanisms makes it difficult for new entrants to navigate the market. Stakeholders often face high legal and administrative costs due to the “bespoke” nature of every deal. This opacity hinders the flow of institutional capital, as investors and insurers struggle to assess the bankability of long-term offtake agreements without standardized data on how these contracts are typically structured.

The solution provided by CDR.fyi and OSCAR is the implementation of a data-driven survey designed to capture a wide range of contractual variables. The survey collects anonymized data on key elements such as delivery timelines, payment milestones, liability clauses, and monitoring requirements. By leveraging CDR.fyi’s extensive market reach and OSCAR’s focus on open-source standards, the organizations are creating a centralized repository of market intelligence. This collaborative approach allows the industry to move toward a more “open-source” understanding of what constitutes a fair and effective contract, effectively lowering the barrier to entry for both suppliers and corporate climate buyers.

The outcomes of this project are expected to significantly accelerate the maturation of the durable CDR market. By publishing the findings from this survey, CDR.fyi and OSCAR will provide the industry with the first comprehensive baseline for contracting norms, enabling more efficient negotiations and reducing lead times for project financing. For biochar producers, this transparency is crucial for securing the multi-year offtake agreements necessary for infrastructure expansion. Ultimately, the data will support the development of standardized contract templates and best practices, fostering a more liquid and reliable market for carbon removal credits globally.