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Environment

Carbon Removal Scales Up: Capacity vs Contracts vs Captured

Jayden

Analyzes global supply chains, industrial policy, and technology issues.

Published

Key points

  • Three numbers get mixed up in carbon-removal headlines: pledged capacity (a design claim), purchased/contracted tonnes (a promise about the future) and delivered/verified tonnes (carbon actually captured, stored and counted).
  • Durable CDR contracts reached 30.4 million tonnes in 2025, but cumulative deliveries of durable removal crossed one million tonnes for the first time only in December 2025 — one year of contracts is about thirty times all-time deliveries.
  • Nameplate figures such as Mammoth's 36,000 tonnes a year and Stratos's 500,000 tonnes a year are company claims, not receipts: Climeworks itself describes a 'production waterfall' from nameplate to net removal, and Stratos hit an unannounced commissioning delay.
  • The IPCC calls removal unavoidable for net-zero but explicitly not a substitute for deep, immediate cuts; Oxford's State of Carbon Dioxide Removal puts the mid-century requirement at 7 to 9 billion tonnes a year while novel CDR runs at about 1.3 million tonnes a year, under 0.1% of the total.
  • Durability and measurement, not price alone, now define quality: engineered DAC costs up to about $540 a tonne by IEA estimates, and the 2023 Verra dispute pushed buyers toward durable removal while leaving the verification problem inherited rather than solved.

In 2024, Climeworks switched on Mammoth, a plant in Iceland it called the world's largest facility for pulling carbon dioxide straight out of the air, with a nameplate capacity of up to 36,000 tonnes a year [source: Climeworks, 2024]. A year later, Occidental's 1PointFive said its far bigger Stratos plant in Texas — designed for up to 500,000 tonnes a year — would start up by the end of 2025 [source: Hart Energy, 2025]. Corporate buyers, meanwhile, went on a spree: durable carbon-removal contracts reached 30.4 million tonnes in 2025, and Microsoft alone signed enough deals to more than double its cumulative commitments to some 45 million tonnes [source: CDR.fyi, 2025]. The industry that promises to reverse emissions, not just avoid them, is suddenly everywhere.

And yet the single most important number in the whole field is a small one. As of December 2025, the total amount of durable carbon dioxide removal (CDR) ever actually delivered and retired — captured, verified and counted — had only just crossed one million tonnes [source: CDR.fyi, 2025]. That is the tension this article is about. Carbon removal is real, it is scaling, and most climate scientists agree the world will need some of it. But the gap between what is pledged, what is purchased and what is verifiably captured is enormous, and reading that gap honestly is the difference between clear-eyed hope and expensive wishful thinking. None of this is investment advice; it is a map of a young and contested industry.

Table of Contents

  1. Why carbon removal is suddenly everywhere
  2. The three numbers that rarely match
  3. A field guide: from trees to machines
  4. Essential complement, or dangerous distraction?
  5. The carbon market's credibility reckoning
  6. What to watch

Why carbon removal is suddenly everywhere

The case for carbon removal starts with arithmetic that even its critics accept. The Intergovernmental Panel on Climate Change (IPCC), in its Sixth Assessment Report, concluded that carbon dioxide removal is "unavoidable" if the world is to reach net-zero, because some emissions — from aviation, heavy industry and agriculture — are extremely hard to eliminate, and something has to balance them out [source: IPCC, 2022]. Every modelled pathway that holds warming to 2°C or below includes at least some CDR. The panel was equally clear about the flip side: removal "cannot substitute" for deep, immediate cuts in emissions. It is the mop, not a licence to keep spilling.

The scale required is daunting. The Oxford-led "State of Carbon Dioxide Removal" report estimates that meeting the 1.5°C target implies removing roughly 7 to 9 billion tonnes of CO2 a year by mid-century [source: University of Oxford, 2024]. Today the world removes about 2 billion tonnes annually, but almost all of that comes from conventional methods — chiefly planting and managing trees. The "novel" methods that attract the headlines and the venture capital — engineered direct air capture, bioenergy with carbon capture, enhanced rock weathering, biochar — together account for only about 1.3 million tonnes a year, less than 0.1% of the total [source: University of Oxford, 2024]. Closing that gap means scaling novel removal 25- to 100-fold in under 25 years.

That combination — genuine necessity plus a vast unmet gap — is why money is flooding in. When a technology is both needed and barely deployed, it looks less like a cost and more like a market waiting to be built.

The three numbers that rarely match

If you take away one habit of mind from this article, make it this: whenever you see a carbon-removal figure, ask which of three very different things it measures.

The first is pledged capacity — what a plant is designed to remove. This is the number in press releases, and it is a claim, not a receipt. Mammoth's 36,000-tonne figure and Stratos's 500,000-tonne figure are both nameplate capacities [source: Climeworks, 2024; source: Hart Energy, 2025]. Nameplate is not net removal: Climeworks itself uses the language of a "carbon removal production waterfall" to describe how the headline capacity shrinks, step by step, into the smaller amount of carbon actually and permanently removed [source: Climeworks, 2024]. Real plants also ramp slowly. Mammoth was still installing its modular capture units through 2024, so in its first year it captured only a small fraction of that headline number. And capacity can slip: Stratos hit an unexpected snag during commissioning, and by mid-2026 its operator had not announced a revised start-up date [source: Carbon Herald, 2026].

The second number is purchased or contracted removal — tonnes a company has agreed to pay for, usually to be delivered years in the future. This is where the market looks explosive. Frontier, an "advance market commitment" launched in 2022 by Stripe, Alphabet, Shopify, Meta and McKinsey, doubled its guarantee to $1.8 billion in 2026, with more than 350 corporate buyers having purchased nearly four million tonnes over its lifetime [source: Frontier Climate, 2026]. Microsoft's buying dominates the market so completely that it accounted for roughly nine-tenths of global offtake in the first half of 2025 [source: CDR.fyi, 2025]. But a contract is a promise about the future, not carbon already out of the sky.

The third number — the one that matters most and gets quoted least — is delivered and verified removal: carbon actually captured, stored and independently counted. Here the totals collapse. Frontier's portfolio companies delivered only about 23,000 tonnes in 2025 [source: Frontier Climate, 2026]. And across the entire durable-CDR market, cumulative deliveries crossed just one million tonnes for the first time in December 2025 [source: CDR.fyi, 2025]. Set the numbers side by side and the shape of the industry appears: one year's contracts (30.4 million tonnes) were about thirty times all the durable removal ever delivered. None of this means the field is a fraud — early industries always sell futures before they ship product. But a purchase is not a removal, and a nameplate is neither.

A field guide: from trees to machines

"Carbon removal" is not one thing; it is a spectrum, and the key axis is durability — how long the carbon stays put. Research suggests that to truly offset fossil emissions, storage should last on the order of 1,000 years; storing carbon for only a century, one analysis found, would leave meaningful extra warming centuries later [source: Nature Communications Earth & Environment, 2024].

At the fast, cheap, familiar end are nature-based methods: reforestation and soil carbon. They are easy to scale and bring side benefits for ecosystems, but their durability is uncertain — a forest can burn, be logged or be ploughed back into the atmosphere. At the slow, costly, durable end are engineered and geological methods. Direct air capture (DAC) uses machines to filter CO2 from ambient air; bioenergy with carbon capture and storage (BECCS) grows biomass, burns it for energy and buries the emissions; both can inject CO2 into rock formations where it can stay for millennia. In between sit enhanced rock weathering, which spreads crushed basalt on fields so it reacts with CO2 and locks it into bicarbonates and minerals for over a thousand years, and biochar, which bakes plant waste into a stable charcoal that holds carbon for centuries [source: Nature Reviews Earth & Environment, 2025].

Durability comes at a price, in both money and measurement. The International Energy Agency puts the cost of engineered DAC at up to roughly $540 a tonne for solid-based systems today, with liquid-based systems somewhat lower — far above nature-based credits, though costs are expected to fall with scale [source: IEA, 2022]. Verification is its own frontier: enhanced weathering, for instance, is genuinely durable but notoriously hard to measure, because tracking the carbon as it dissolves and travels toward the ocean strains current sampling methods [source: Nature Reviews Earth & Environment, 2025]. This is why the market has been tilting toward the most durable, most measurable options even though they cost the most.

Essential complement, or dangerous distraction?

Here the debate turns genuinely contested, and honest coverage has to hold two views at once.

On one side, carbon removal is framed as an essential complement to emissions cuts — the only way to mop up the residual emissions that even an aggressively decarbonising world will still produce, and eventually to draw down the overshoot if temperatures breach 1.5°C. On this view, building the industry now, while it is small and expensive, is exactly how solar and batteries once climbed down their cost curves.

On the other side is the charge of "moral hazard," or "mitigation deterrence": the worry that the mere promise of future removal gives governments and companies an excuse to keep emitting today, slowing the cuts that matter most [source: WIREs Climate Change, 2023]. If a firm can buy its way to "net zero" with cheap offsets, why do the hard work of actually decarbonising? The evidence here is genuinely mixed. Some studies find signs that removal can crowd out mitigation; others find no such effect, or even the opposite — that learning about CDR makes people take the climate problem more seriously [source: WIREs Climate Change, 2023]. Researchers who study the risk tend not to conclude that removal is bad, but that it must be governed carefully: separate targets for cutting emissions and for removing carbon, so that one cannot quietly be substituted for the other [source: Carbon Gap, 2024]. The IPCC's own framing — necessary but not a substitute — is really a warning against exactly this substitution [source: IPCC, 2022].

The carbon market's credibility reckoning

The distinction between avoiding emissions and removing them is not academic; it is the fault line along which the carbon market has been shaking. In 2023, an investigation by The Guardian, Die Zeit and SourceMaterial reported that more than 90% of rainforest offset credits certified by Verra, the largest standards body, were likely "phantom credits" representing no real emissions reductions; the analysis suggested one major project type had overstated the threat to forests by around 400% [source: The Guardian, 2023]. Verra rejected the findings, with its markets chief calling it "absolutely incorrect" to say 90% of its credits were worthless [source: The Guardian, 2023]. Whichever way one reads the specifics, the episode shattered confidence in a whole class of cheap, avoidance-based offsets.

That crisis is a large part of why corporate money has migrated toward durable removal, where a tonne stored underground is at least conceptually easier to verify than a tonne of deforestation that supposedly did not happen. But the reckoning is not over — it has moved. Durable removal now faces its own quality questions: how to measure enhanced weathering, how to certify biochar permanence, how to be sure a delivered tonne is really durable. The lesson buyers took from 2023 was to demand measurement, and that same demand is now the pressure test for engineered removal. The credibility problem was not solved; it was inherited by a more expensive part of the market.

What to watch

Carbon removal sits on a real foundation. The IPCC says some of it is unavoidable, the required scale is vast, and durable methods genuinely can lock carbon away for the timescales that matter. But the same evidence counsels discipline. A nameplate capacity is a claim; a purchase is a promise; only a delivered, verified tonne is a removal — and by that strictest measure the industry has, so far, done very little. The 30-fold gap between one year's contracts and all-time deliveries is not necessarily a scandal, but it is the number to keep your eye on.

A few things are worth watching from here. Will delivered tonnes start to catch up with contracted ones, or will the gap keep widening? Will engineered plants like Stratos hit their nameplate capacity, and will DAC costs fall the way solar's did — or stall? Will the measurement standards for enhanced weathering and biochar mature enough to prevent a durable-removal version of the offsets scandal? And politically, will governments set separate, enforceable targets for cutting emissions and for removing carbon, so that removal complements the cuts instead of excusing their delay? The most useful habit a reader can carry into the next headline is simple: when someone quotes a carbon-removal number, ask whether it was captured, contracted or merely claimed.

Charts

Pledged capacity: nameplate design figures (company claims)

Pledged capacity: nameplate design figures (company claims)Climeworks Mammoth (nameplate, up to) 36,000tonnes/yr, 1PointFive Stratos (nameplate, up to) 500,000tonnes/yr36,000tonnes/yrClimeworks Mammoth (nameplate, up to)500,000tonnes/yr1PointFive Stratos (nameplate, up to)
Both figures are nameplate design capacities announced by their operators — Mammoth's by Climeworks (2024) and Stratos's as reported by Hart Energy (2025) — not verified net removal. Because the two values come from different announcements, no single source link is attached. Stratos's start-up has since been delayed with no revised date announced.

Contracted vs delivered durable carbon removal

Contracted vs delivered durable carbon removalContracted in 2025 (purchase agreements) 30.4Mt, Cumulative delivered, all time (verified) 1Mt30.4MtContracted in 2025 (purchase agreements)1MtCumulative delivered, all time (verified)
Contract volume from CDR.fyi's Q2 2025 durable CDR market update; the cumulative delivery figure is the one-million-tonne milestone CDR.fyi recorded in December 2025 and is an all-time total, not an annual one. The two values come from separate CDR.fyi releases, so no single source link is attached.

Removal needed by mid-century vs removal happening today

Removal needed by mid-century vs removal happening todayNeeded by mid-century (lower end of estimate) 7Gt/yr, Needed by mid-century (upper end of estimate) 9Gt/yr, Removed today, almost all conventional 2Gt/yr7Gt/yrNeeded by mid-century (lower end of estimate)9Gt/yrNeeded by mid-century (upper end of estimate)2Gt/yrRemoved today, almost all conventional
Estimates from the Oxford-led State of Carbon Dioxide Removal 2024. The 7-9 figure is a range, shown here as its two bounds. Today's roughly 2 Gt comes almost entirely from conventional methods such as tree planting; novel CDR accounts for about 1.3 million tonnes a year, under 0.1% of the total, and cannot be shown on the same axis.University of Oxford — The State of Carbon Dioxide Removal 2024 (opens in a new tab)

Engineered direct air capture: estimated cost per tonne

Engineered direct air capture: estimated cost per tonneSolid-based DAC (upper end) $540/tonne, Liquid-based DAC (upper end) $340/tonne$540/tonneSolid-based DAC (upper end)$340/tonneLiquid-based DAC (upper end)
IEA estimates of capture cost per tonne; both figures are upper ends of a range, not fixed prices, and the agency's long-term goal is below $100 a tonne at scale.IEA — Direct Air Capture (opens in a new tab)

Timeline

  1. IPCC AR6 Working Group III concludes carbon removal is unavoidable for net-zero, while stating it cannot substitute for deep, immediate emission cuts.

    IPCC AR6 WGIII CDR Factsheet (opens in a new tab)
  2. Frontier launches as a $1 billion advance market commitment backed by Stripe, Alphabet, Shopify, Meta and McKinsey.

    Frontier Climate (opens in a new tab)
  3. A Guardian / Die Zeit / SourceMaterial investigation reports that more than 90% of Verra-certified rainforest offset credits may be worthless; Verra rejects the finding.

    The Guardian (opens in a new tab)
  4. Climeworks switches on Mammoth in Iceland, announced as the world's largest DAC plant with a nameplate capacity of up to 36,000 tonnes a year and modular collectors still being installed.

    Climeworks press release (opens in a new tab)
  5. The State of Carbon Dioxide Removal 2024 estimates 7-9 Gt of CO2 must be removed annually by mid-century, against novel CDR of about 1.3 Mt a year — a 25- to 100-fold gap.

    University of Oxford / Smith School (opens in a new tab)
  6. Climeworks is reported to cut 22% of its workforce amid US policy uncertainty, in the same period its net capture is reported in the hundreds of tonnes.

    CNN (opens in a new tab)
  7. CDR.fyi records the largest quarter ever for durable CDR purchasing at 15.5 Mt, on the way to 30.4 Mt contracted across 2025.

    CDR.fyi Q2 2025 market update (opens in a new tab)
  8. Microsoft more than doubles its cumulative carbon-removal deals to about 45 Mt, accounting for roughly 91% of global offtake in the first half of the year.

    Carbon Credits / CDR.fyi (opens in a new tab)
  9. Cumulative durable CDR deliveries cross one million tonnes for the first time, across 117 suppliers, 28 countries and 521 buyers.

    Carbon Herald / CDR.fyi (opens in a new tab)
  10. Frontier raises a further $915 million, doubling its total commitment to about $1.8 billion, with 350+ buyers having purchased nearly four million tonnes but only about 23,000 tonnes delivered in 2025.

    Frontier Climate (opens in a new tab)
  11. 1PointFive confirms an unexpected delay in Stratos Phase 1 commissioning and does not announce a revised start-up date.

    Carbon Herald (opens in a new tab)

Analysis

One year of contracts is thirty times all-time deliveries

Durable CDR contracts reached 30.4 Mt in 2025, while cumulative deliveries of durable removal crossed one million tonnes only in December 2025. That is roughly a thirty-fold gap between what was bought in a single year and what has ever been handed over and verified. Early industries routinely sell futures before shipping product, but the two numbers measure different things and should never be quoted interchangeably.

Nameplate capacity is a design claim, not net removal

Climeworks itself uses the language of a carbon removal production waterfall to describe how headline capacity shrinks step by step into permanently removed carbon. Its Orca plant illustrates the first step: a nameplate of 4,000 tonnes against a stated CDR production capacity of 3,000 tonnes. Reporting on Mammoth's first year put Climeworks' total net capture from December 2023 to October 2024 at roughly 876 tonnes, with about 105 tonnes attributed to Mammoth — figures that come from press reporting rather than audited disclosure, and that reflect a plant still installing its modules.

Demand is concentrated in very few buyers

Microsoft alone accounted for roughly 91% of global offtake in the first half of 2025. Delivery is concentrated too, but differently: according to CDR.fyi, buyers other than Microsoft and Frontier hold 17% of contracts yet account for 90% of deliveries and 94% of retirements. Deliveries are led by biochar, which is comparatively easy to measure, while contracts are led by BECCS — so the tonnes being promised and the tonnes being handed over are not even the same technologies.

The gap is measured in orders of magnitude, not percentages

Meeting the 1.5°C target implies removing 7 to 9 Gt of CO2 a year by mid-century. The world removes about 2 Gt today, almost all of it conventional tree planting and land management; the novel methods attracting the capital total roughly 1.3 Mt a year, under 0.1% of the total. Closing that gap means scaling novel removal 25- to 100-fold in under 25 years.

Durability costs money and, harder still, measurement

The IEA puts engineered DAC capture cost at up to about $540 a tonne for solid systems and up to $340 for liquid ones, against a long-term goal below $100 at scale; voluntary-market DAC prices in 2024 spanned $100 to $2,000 a tonne, with a recent-years average around $490 according to WRI market data. But cost is not the binding constraint everywhere: enhanced rock weathering stores carbon for over a thousand years and is still hard to verify, because sampling the dissolved phase and quantifying transport to the ocean strains current methods.

The credibility problem moved rather than closed

The 2023 investigation into Verra-certified rainforest credits — and Verra's rejection of it — shattered confidence in cheap avoidance-based offsets and pushed corporate money toward durable removal. That migration did not settle the underlying question. Certifying biochar permanence, measuring enhanced weathering and grading a delivered tonne's durability are the same verification problem, now attached to a more expensive part of the market.

Comparison

The four layers behind carbon-removal headlines, and what each number actually is
LayerRepresentative figureStatusWho reports it
Pledged capacityMammoth 36,000 t/yr · Stratos 500,000 t/yrCompany claim; design capacity, not net removal; Stratos delayedClimeworks / Hart Energy, Carbon Herald
Purchased / contracted30.4 Mt contracted in 2025 · Frontier $1.8bn · Microsoft 45 Mt cumulativeA promise about future delivery, not verified removalCDR.fyi, Frontier Climate, Carbon Credits
Delivered / verified1 Mt cumulative durable delivery (2025-12) · novel CDR ~1.3 Mt/yrActually captured, stored and counted — the smallest numberCDR.fyi / Carbon Herald, University of Oxford
Needed7-9 Gt/yr by mid-centuryModelled requirement for 1.5°C; a 25- to 100-fold gap against novel CDR todayUniversity of Oxford / Smith School
Removal methods along the durability axis
MethodHow long the carbon staysStrengthsMain open problem
Nature-based (reforestation, soil carbon)UncertainCheap, fast to scale, ecosystem co-benefitsReversal through fire, logging or ploughing
Engineered / geological (DACCS, BECCS)Millennia when injected into suitable rock formationsHigh durability, monitorable storage sitesCost — up to about $540 a tonne for solid DAC — and slow ramp-up
Enhanced rock weatheringOver 1,000 years as bicarbonates and stable mineralsUses crushed basalt on farmland; durable by chemistryMRV: sampling the dissolved phase and tracking transport to the ocean
BiocharCenturies with good feedstock and pyrolysisMeasurable enough to lead actual deliveries todayCertifying permanence; a 2025 Puro methodology uses inertinite reflectance

Process

  1. Nameplate announced

    A plant's designed maximum, published by its operator — Mammoth up to 36,000 t/yr, Stratos up to 500,000 t/yr. A claim, not a receipt.

  2. Ramp-up and production waterfall

    Modules are installed over time and net removal falls below nameplate at every step — Climeworks' Orca lists 4,000 t nameplate against 3,000 t CDR production capacity.

  3. Purchase or contract signed

    A buyer agrees to pay for tonnes usually delivered years later. 30.4 Mt was contracted in 2025 alone.

  4. Delivery

    Carbon is actually captured and stored. Frontier's portfolio companies delivered about 23,000 tonnes in 2025.

  5. Verification and retirement

    The tonne is independently counted and retired. Cumulative durable deliveries passed one million tonnes only in December 2025.

  6. Durability grading

    The remaining question is how long it stays put; research suggests storage should last on the order of 1,000 years, since a century of storage leaves meaningful extra warming later.

Sources

  1. IPCC — AR6 Working Group III, Carbon Dioxide Removal Factsheet (2022).View source (opens in a new tab)
  2. University of Oxford / Smith School of Enterprise and the Environment — The State of Carbon Dioxide Removal 2024 (2nd Edition) (2024-06-05).View source (opens in a new tab)
  3. Climeworks — Climeworks switches on world's largest direct air capture plant, Mammoth (2024).View source (opens in a new tab)
  4. Hart Energy — Occidental's Stratos DAC Project on Track for 2025 Startup (2025).View source (opens in a new tab)
  5. Carbon Herald — Occidental's Stratos DAC Hub commissioning update (2026).View source (opens in a new tab)
  6. CDR.fyi — Durable CDR Market Update Q2 2025 / Durable Carbon Removal Marks Milestone 1 Million Deliveries (2025).View source (opens in a new tab)
  7. Frontier Climate — $915M in new funding to drive carbon removal's next phase (Growth AMC) (2026).View source (opens in a new tab)
  8. International Energy Agency — Direct Air Capture: A key technology for net zero (2022).View source (opens in a new tab)
  9. Nature Communications Earth & Environment — Durability of carbon dioxide removal is critical for Paris climate goals (2024).View source (opens in a new tab)
  10. Nature Reviews Earth & Environment — Challenges and opportunities in scaling enhanced weathering for carbon dioxide removal (2025).View source (opens in a new tab)
  11. WIREs Climate Change (Carton et al.) — Is carbon removal delaying emission reductions? (2023).View source (opens in a new tab)
  12. Carbon Gap — How to avoid carbon removal delaying emissions cuts (2024).View source (opens in a new tab)
  13. The Guardian — Revealed: more than 90% of rainforest carbon offsets by biggest certifier are worthless (2023-01-18).View source (opens in a new tab)

Tags

  • #carbon-removal
  • #direct-air-capture
  • #cdr
  • #carbon-credits
  • #net-zero