The Council on Energy, Environment and Water and the Carbon Removal India Alliance recently published a report by Christi Kesh, Srishti Singh, Darshna Singh, Aparna Sharma, Vaibhav Chaturvedi, and Asitava Sen detailing the role of carbon markets in scaling durable carbon removal in India. The findings indicate that while traditional nature-based solutions like planting trees are well-established, more permanent technological methods are necessary to meet long-term climate goals. Current global data shows that novel, high-durability methods currently account for less than one-tenth of one percent of total carbon removals. However, the researchers emphasize that India is uniquely positioned to lead this emerging sector due to its extensive biomassBiomass is a complex biological organic or non-organic solid product derived from living or recently living organism and available naturally. Various types of wastes such as animal manure, waste paper, sludge and many industrial wastes are also treated as biomass because like natural biomass these More resources and large-scale agricultural systems.

A primary challenge identified is the high financial barrier and lack of domestic policy support for these new technologies. At present, the cost to break even for durable removal methods ranges from one hundred forty to three hundred forty dollars per metric ton. These costs are significantly higher than traditional avoidance projects, creating a financing gap that current markets struggle to fill. Furthermore, there is a lack of clear national guidelines or a specific category for durable removal in India’s existing carbon trading schemes. Without a clear regulatory framework or price signals that value long-term storage, private developers face significant uncertainty when attempting to scale operations.

The researchers propose integrating durable carbon removal into existing and emerging carbon markets as a viable solution. By strengthening price signals and aggregating demand through advance purchase commitments, markets can provide the revenue certainty needed to attract private investment. Specifically, the report suggests that India should develop a national strategy that treats carbon removal as a developmental tool rather than just a climate obligation. This involves creating a standardized system to define and verify different types of carbon storage, ensuring that the carbon removed remains out of the atmosphere for hundreds or thousands of years. Such a system would help distinguish high-quality, permanent removals from temporary nature-based ones.

The outcomes of successfully scaling these technologies in India would be substantial for both the environment and the economy. Early commercial success is already visible, with approximately two hundred fourteen thousand durable removal credits issued from Indian projects to date. Major global corporations have already begun signing large-scale contracts with Indian developers, including two separate agreements for one hundred thousand tons of removals each. Beyond carbon sequestration, these methods offer significant local benefits, such as improving soil health for farmers, creating new rural jobs, and reducing air pollution from the burning of crop waste. By 2050, the annual global market potential for these services could reach up to one trillion dollars, placing India at the forefront of a major new global industry.

Source: Kesh, C., Singh, S., Singh, D., Sharma, A., Chaturvedi, V., & Sen, A. (2026). How can carbon markets scale durable carbon dioxide removal in India? Council on Energy, Environment and Water; Carbon Removal India Alliance.