Carbon Direct’s 2024 State of the Voluntary Carbon Market (VCM) report highlights an urgent need to expand carbon dioxide removal (CDR), especially in nature-based solutions, to achieve global environmental goals. While CDR technologies are gaining attention, they currently make up only 4% of the $1 billion VCM, signalling a significant gap in efforts to reduce atmospheric carbon effectively.
Chimpanzee sitting among lush, biodiversity-rich trees in the heart of a forest in Bulindi, Uganda. AI generated picture.
The report identifies a demand-supply imbalance, driven by a small group of committed buyers. Carbon Direct stresses that scaling CDR to the required level will need substantial investment and stronger policy support. Global environmental targets call for 5–10 billion tonnes of CO2 removal each year by 2050, but current financing for CDR projects remains well below what’s needed.
Carbon Direct projects that by 2030, demand for CDR could reach 50 million tonnes annually—a figure that falls short of the Paris Agreement’s 1.5°C goal. This gap highlights the need for both capital and clear market structures to foster growth.
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Matthew Potts, Carbon Direct's Chief Science Officer, points out that although both high-durability and nature-based CDR projects show promise, these efforts require significantly more funding and broad-based support. Forward purchases of high-durability CDR solutions are currently concentrated among a few major buyers, further emphasising the need for a broader investment base.
The report calls for transparent, quality-focused market structures and accelerated investment in both high-durability and nature-based CDR solutions. Potts emphasises that nature-based solutions offer a viable near-term option but remain underfunded despite their potential to meet the growing demand for carbon removal.
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Nature offers an extraordinary path to address carbon emissions, helping to restore balance to our planet. At DGB Group, we are dedicated to harnessing this potential through impactful nature-based solutions. Our work goes beyond tree planting, focusing on comprehensive ecosystem restoration that nurtures both the environment and local communities.
Our projects are built for lasting impact, meeting rigorous environmental and social standards to ensure meaningful, enduring change. By investing in these initiatives, you’re supporting environmental care and contributing to a sustainable future where people and nature flourish side by side.
