A recent report by the World Economic Forum and SIX Group details the transition of the carbon dioxide removal sector from a policy concept into an emerging global industrial industry. While the planet currently removes roughly two gigatonnes of carbon dioxide equivalent per year, durable methods like 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, direct air capture, and bioenergy with carbon capture account for less than two megatonnes annually. To reach the required four gigatonnes of annual removals by 2035, the sector must bridge the substantial gap between ambitious climate targets and actual field deployment across key regions, including Switzerland and the European Union.

The primary challenge outlined is that the market remains highly fragmented, reliance on bespoke bilateral contracts drives up transaction costs, limits comparability, and creates regulatory uncertainty. Consequently, institutional capital—including banks, insurers, and asset managers—remains hesitant to commit the massive funding needed to scale projects. Without standardized asset definitions, reliable measurement, and consistent legal frameworks, project developers face severe hurdles when attempting to establish predictable cash flows or secure long-term debt financing.

To address these systemic barriers, the report outlines a six-layer market architecture focused on unifying quality standards, legal contracts, demand mechanisms, registries, market plumbing, and governance. This framework incorporates ongoing regional developments, such as the implementation of the European Union’s Carbon Removals and Carbon Farming framework and the integration of international credits into compliance systems. Furthermore, standard legal instruments, such as the Open Standard Carbon Removal Purchase Agreement and Frontier’s template contracts, are designed to streamline transactions and lower legal overhead.

The successful implementation of this six-layer architecture will transition durable carbon removal from isolated, project-level deals into a bankable, liquid global asset class. By phasing development from initial trust-building to integrated market infrastructure, project developers will gain access to broader institutional capital pools. This structural shift will allow high-integrity carbon removal suppliers to secure long-term offtake agreements, lower financing costs, and rapidly scale global operational capacity.