Carbon & Climate Finance

Carbon Removal Credits

Biochar, direct air capture, soil carbon, mineralization.

Investment Overview

Carbon removal credits (CDR credits) represent verified tons of CO2 permanently removed from the atmosphere through technological or biological methods. Unlike avoidance credits (preventing emissions), removal credits actively draw down existing atmospheric carbon. The CDR market reached $2B in 2024, driven by corporate net-zero commitments and Microsoft, Stripe, Shopify purchases. Technologies include direct air capture (Climeworks, Carbon Engineering), biochar (Charm Industrial, Pacific Biochar), enhanced weathering, and ocean alkalinity. Prices range $100-$1,000+ per ton depending on permanence (storage duration), verification standards, and removal method.

Market Context & Trends

CDR credit market grew 150% in 2023 as voluntary carbon market shifted from avoidance to removal credits. Puro.earth marketplace dominates high-quality engineered removal (85% market share). Buyers demand 1,000+ year permanence vs. 100-year forest credits. Supply constrained: only 1.5M tons available (2024) vs. 10M+ tons corporate demand. Microsoft committed to purchasing 10M tons CDR credits through 2030.

How to Invest in Carbon Removal Credits

Puro.earth Marketplace: Direct CDR credit purchases, minimum 100 tons ($10K-$20K)

Climeworks Direct Air Capture: Subscription model, personal carbon removal starting $1,200/year for 1 ton

Charm Industrial Biochar: Verified biochar credits via Puro.earth registry

Nori Carbon Removal Marketplace: Tokenized carbon removal, fractional purchases from $100

Patch Carbon Removal API: Embedded carbon removal for businesses, retail access via partnerships

Key Platforms & Access Points

Puro.earth: Premium CDR marketplace, 1,000+ year permanence credits only

Climeworks: Swiss DAC company, 18 removal plants, subscription and B2B sales

Charm Industrial: Biochar CDR, converts biomass to bio-oil for permanent storage

Nori: Tokenized carbon removal marketplace, fractional purchases, blockchain verified

Patch: Carbon removal API, integrates into e-commerce checkout flows

Key Investment Metrics

Permanence: 1,000+ years preferred (DAC, biochar, mineralization) vs. 100 years (forests)

Verification Standard: Puro.earth, Gold Standard, or ACR methodology

Price per ton: $100-$200 biochar, $400-$600 enhanced weathering, $600-$1,000+ DAC

Additionality: Would removal happen without carbon credit revenue? Critical assessment

Co-benefits: Soil health (biochar), ocean health (alkalinity enhancement), local jobs

Risk Considerations

Understanding these risks is critical before investing in carbon removal credits.

Price volatility: CDR credits swung $200-$800/ton (2022-2024) based on corporate demand
Technology risk: DAC, enhanced weathering early-stage; cost reductions uncertain
Verification challenges: MRV (monitoring, reporting, verification) costs 10-20% of credit value
Supply shortage: Demand exceeds supply 10:1; long lead times for credit delivery
Greenwashing backlash: Low-quality avoidance credits taint market; scrutiny increasing

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