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- Market Growth: Quality-oriented carbon credit purchases soared from 3.1 million to 15.1 million tonnes between 2021 and 2023.
- Global Standards: Emerging alignment on carbon removal quality standards in the US and EU sets the stage for market confidence and growth.
- Forward Progress: Landmark deals have propelled engineered and nature-based carbon removal projects from pilot phases to large-scale implementations.
Carbon Direct and Microsoft have released the 2024 edition of the Criteria for High-Quality Carbon Dioxide Removal, reflecting significant market and scientific advancements since their initial collaboration in 2021.
Market Evolution
Three years ago, the carbon removal market lacked consensus on project quality. The initial Criteria aimed to define quality standards and guide developers, resulting in a fivefold increase in quality-oriented carbon credit purchases from 2021 to 2023. “Quality-oriented, removals-focused purchases of carbon credits increased fivefold from 2021 through 2023,” noted the report, highlighting the growth from 3.1 million to 15.1 million tonnes. Despite this growth, the industry still requires a substantial scale-up to meet the 2050 target of billions of tonnes of carbon removal annually.
Global Standards Alignment:
- US Initiatives: The Voluntary Carbon Markets Joint Policy Statement and Principles promote shared quality standards.
- EU Framework: The Carbon Removal Certification Framework sets high regulatory standards for voluntary carbon removal credits, influencing broader market practices. “Alignment on benchmarks for quality will be essential to catalyze the necessary confidence in the market,” the report emphasized.
Microsoft’s Role
Microsoft’s application of the Criteria in direct procurement has accelerated high-quality carbon removal projects. Landmark deals have transitioned engineered removal projects from labs to large-scale implementations, like Ørsted’s Kalundborg Hub and Stockholm Exergi, set to deliver over 5 million tonnes of carbon removal by the mid-2030s. Nature-based projects, such as those by re.green and Mombak, have restored degraded lands in South America, contributing millions of tonnes of carbon removal and benefiting local ecosystems.
2024 Criteria Updates
The updated Criteria include refined principles for various carbon removal methods. A significant change is the new principle focusing on environmental harms and benefits, emphasizing the importance of minimizing environmental damage and enhancing ecosystem health. “Scaling up carbon removal is central to the IPCC goal of limiting climate change to 1.5 degrees or less of warming,” the report stated. This principle highlights the need for carbon projects to promote nature while scaling up industry efforts.
Related Article: BlackRock, Temasek, Quantum Energy Partners Invest $60 Million into Carbon Direct
Future Goals
To meet the IPCC’s goal of limiting global warming to 1.5 degrees, the industry must achieve 5-10 billion tonnes of carbon removal by 2050. Novel methods like biochar and direct air capture will be crucial, though currently, they remove only 1.34 million tonnes annually. Carbon Direct remains committed to advancing the carbon removal market, ensuring science-driven solutions guide the industry toward effective, scalable climate actions.
Carbon Direct, in partnership with Microsoft, continues to lead the charge in defining and enhancing high-quality carbon removal standards. The 2024 Criteria update reflects their commitment to science-based approaches, ensuring the market grows to meet crucial climate targets.