ClimeFi Carbon Removal Market Review Q2’25: Major Buyers & CDR Policies Take Shape - CleanTechnica

The global carbon dioxide removal (CDR) market experienced unprecedented growth in Q2 2025, with contracted volumes more than doubling from 13.5 to 29.2 million tonnes of CO₂. This surge was driven primarily by biomass carbon removal and storage (BiCRS), which accounted for 99% of the volumes, and market spending reached $3.9 billion. Corporate buyers, led by Microsoft with a 6.75 million tonne agreement, continued to dominate demand, alongside other major players like J.P. Morgan and TikTok. Despite a significant slowdown in verified credit issuance—down 86% this quarter—diversification in financing increased, with $182 million raised in equity and grants and $78 million awarded through XPRIZE. Key policy developments also shaped the market landscape. The EU’s near-final Green Claims Directive will restrict companies from claiming carbon neutrality based solely on offsets, requiring demonstrable direct emissions reductions and certified removals under the EU’s Carbon Removal Certification