A new report published by the World Economic Forum (WEF), in collaboration with Oliver Wyman and ClimeFi, highlights that the global carbon dioxide removal (CDR) market is currently falling short of the scale required to meet international climate targets. While CDR technologies, including 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 (DAC), and bioenergy with carbon capture and storage (BECCS), are recognized as essential tools for limiting global warming, the report warns that several systemic obstacles are preventing these solutions from reaching their full potential. The publication serves as a strategic guide for buyers, developers, and policymakers to navigate the complexities of the current CDR landscape.

The primary challenge identified in the report is a combination of fragmented standards, unclear accounting rules, and restricted access to capital. These structural barriers create significant uncertainty for investors and developers, hindering the transition from early pilot phases to large-scale commercial deployment. Specifically, the lack of standardized global verification criteria for carbon removal credits makes it difficult for participants to accurately assess the quality and bankability of projects. Furthermore, existing pipeline capacities for most removal technologies remain well below the levels demanded by the 2050 net-zero pathway.

To address these barriers, the WEF report outlines several critical actions aimed at stabilizing the market and encouraging capital flow. The solution includes expanding public funding and standardizing international verification criteria to increase transparency and trust in removal credits. On the financial side, the report suggests that new contracting structures, such as offering buyers option contracts and prepayment discounts ranging from 7 to 14 percent, can help de-risk projects and secure early investment. Additionally, developing shared infrastructure for carbon dioxide storage is recommended to improve overall cost efficiency across the sector.

The expected outcomes of implementing these recommendations include the conversion of early demand signals into a durable and scalable supply of high-integrity carbon removals. By creating a more transparent and standardized financial architecture, the CDR market—including biochar-based carbon removal—can begin to attract the institutional finance necessary for rapid expansion. Ultimately, these structural reforms are intended to ensure that CDR technologies reach the massive capacities required to stay on track for global net-zero commitments while providing developers with a clearer path toward long-term commercial viability.