ClimeFI CDR Market Review: Key Transaction Trends Q1 2025

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ClimeFI is giving us an insightful view into the carbon dioxide removal market by publishing its CDR Market Review Q1 2025. The carbon dioxide removal (CDR) market is showing substantial growth in the first quarter of 2025, with new contracts totaling 700 kilotonnes (kt) of durable CDR — marking a 32% rise compared to the same period in 2024. This represents the highest-ever volume recorded in any first quarter, reflecting a robust and growing demand for durable carbon removal solutions.

Biomass & Marine CDR Lead the Way

By the end of March, cumulative commitments for durable CDR reached over 13.5 million tonnes. Biomass CDR emerged as the most popular pathway in Q1, with companies securing 260 kt of credits, capturing 42.6% of total market volume. Marine CDR closely followed, experiencing unprecedented growth with 230 kt of credits, accounting for 36% of the market—its strongest performance yet.

Tech Giants & Aviation Innovators Drive Market Momentum

Google maintained its prominent role in the sector, securing significant deals including the largest biochar agreement ever recorded — purchasing 100 ktCO₂ from Varaha and another 100 ktCO₂ of bio-oil from Charm Industrial. Google’s consecutive quarterly purchases exceeding 100 ktCO₂ solidify its leading position within the durable CDR market.

Meanwhile, SkiesFifty, a pioneering sustainable aviation investment firm, finalized the largest-ever Marine CDR transaction with Gigablue, contracting 200 kt over four years. Together, Google and SkiesFifty represented 64% of Q1’s total credit purchases.

Frontier maintained its consistent market presence with acquisitions totaling 125.7 ktCO₂. This included significant investments in Direct Air Capture (DAC) from Phlair and Enhanced Rock Weathering (ERW) from Eion, valued at roughly $33 million. Additionally, TikTok entered the market for the first time, buying 5 ktCO₂ in DAC, Biochar, and reforestation credits from Climeworks. On the supplier side, credit issuances totaled 267 ktCO₂ in Q1. Red Trail Energy dominated issuances, supplying 221 ktCO₂ of BioCCS credits and capturing nearly 83% of the market share.

Major BECCS Project Gains Support in Sweden

Operational milestones included Stockholm Exergi’s final investment decision for a major Bioenergy with Carbon Capture and Storage (BECCS) project. The BECCS Stockholm facility, expected online by 2028, aims to remove up to 800 ktCO₂ annually. The project secured significant backing through Sweden’s reverse auction for BECCS, amounting to over 20 billion SEK (approximately $1.8 billion).

Canada was the only other nation providing notable public funding for CDR in Q1, supporting DAC, Marine CDR, and innovative projects via the British Columbia Centre for Innovation and Clean Energy (CICE).

DAC emerged again as the preferred pathway for private funding, drawing $72.5 million in investment during Q1 alone.

Detailed Insights

For a comprehensive view of market developments and strategic insights, the complete ClimeFi Q1 2025 CDR Market Review is available for download here.

In other CDR news, Altitude recently secured +25.000 of CDRs from Western Africa and CleanTechnica interviewed Anu Khan (Founder of Carbon Removal Standards Initiative).