Accelerating Carbon Dioxide Removal: Unlocking the UK's potential to support global net zero

$100bn The global carbon dioxide removal market may reach up to $100bn a year between 2030 and 2035

There is immense potential in the global carbon dioxide removal (CDR) market, which may reach up to $100 billion a year between 2030 and 2035, if barriers to scale are addressed. Demand for CDR credits is growing but is still insufficient to support necessary investment levels to meet net-zero targets.

Key actions which can help overcome these barriers include as articulating the role of removals in the UK's net zero strategy, providing guidance to companies on their appropriate role, establishing clear thresholds for monitoring, verification, and reporting, including removals in compliance markets, detailing subsidy and support mechanisms, and supporting the development of the CDR financial market ecosystem.

This report, produced in association with Oliver Wyman and the UK Carbon Markets Forum, identifies major barriers to CDR demand, and outlines key supply-side constraints while highlighting key actions that the industry and public sector can take to support the development of the CDR market. Addressing these barriers is crucial to unlocking the market's full potential and achieving global climate goals.

Watch Catherine McGuinness, City of London’s representative on the UK Carbon Markets Forum and James Davis, Oliver Wyman’s co-head of climate and sustainability in Europe discuss the potential of carbon dioxide removals.