Navigating the Future
The Carbon Removal Sector in 2024
As the world increasingly feels the impacts of climate change, the urgency to mitigate its effects has never been more pronounced. The carbon removal sector, pivotal in the fight against rising temperatures, is on the brink of significant advancements in 2024. Reflecting on the strides and setbacks of 2023, this blog explores the anticipated trends, investments, and innovations that are shaping the future of carbon removal.
2023: A Year in Review
The Good: 2023 saw substantial advancements in carbon removal technologies. Direct Air Capture (DAC) projects like the Stratos project in Texas and Climeworks in Iceland marked significant milestones. Policy developments globally, especially with the Inflation Reduction Act and the Bipartisan Infrastructure Law in the U.S., provided much-needed momentum through funding and incentives.
The Bad: The voluntary carbon market in 2023 was challenged by low-quality carbon projects that failed to deliver on promised climate benefits, leading to accusations of greenwashing. The market was flooded with dubious carbon credits, raising concerns about the actual climate impact of these offsets. Issues of overestimated emissions reductions, community conflicts due to land disputes, and the integrity of additionality further complicated the credibility of carbon offsetting initiatives. CEOs and leaders in the industry faced scrutiny and, in some cases, stepped down amid these controversies.
The Future: These developments set the tone for an ambitious 2024, with the sector poised for accelerated growth and innovation. Nature-based solutions and other leading removal strategies are expected to take centre stage, signalling a transformative year in environmental management.
Market Growth and Investment Trends
As we enter 2024, the carbon removal market is poised for significant growth, with investments potentially reaching $400 billion by 2030. The sector is expanding as companies engage in selling carbon removal credits and innovative products like biochar. Key to this expansion is attracting more enterprises, following Microsoft’s lead, and a crucial role for governments in incentivizing and regulating the market. This collective approach is vital for creating a robust and dynamic market with a diverse buyer base.
Continuing and Emerging Trends
DAC is set to continue its rapid expansion, with numerous projects around the globe coming to fruition. The XPRIZE Carbon Removal competition has galvanised global efforts, with over 300 teams ready to demonstrate innovative solutions in 2024. These projects reflect a vibrant and diverse future for the sector, spanning various methodologies and geographical locations. It’s vital to balance this technological enthusiasm with continued investment in nature-based solutions, ensuring a holistic approach to carbon removal that includes preserving and restoring ecosystems.
The Rise of Nature-Based Solutions
The rise of nature-based solutions is set to accelerate in 2024, driven by an increasing recognition of their benefits beyond carbon sequestration, such as enhancing biodiversity, supporting water management, and bolstering community resilience. This trend reflects a broader shift towards holistic, sustainable approaches in climate action. As technology and methodologies advance, expect these solutions to become more integrated into climate policy and corporate strategies, offering a promising pathway to a more balanced and effective response to climate challenges.
The Expanding Horizon for Biochar
Biochar’s potential is increasingly being leveraged in various sectors, particularly in agriculture where it enhances soil fertility and water retention, leading to increased crop yields. As a stable form of carbon, biochar is recognized for its long-term carbon sequestration capabilities. Its porous nature also makes it beneficial in waste management, acting as a filter and improving waste decomposition. With technological advances and a growing market, biochar’s role in carbon removal strategies is set to expand significantly, contributing to a sustainable future.
In December 2023, Microsoft’s substantial purchase from Carbonfuture marked a pivotal moment for biochar, highlighting its commercial viability and effectiveness in carbon sequestration. This move by a tech giant underscores biochar’s emerging role as a key player in the climate solution portfolio, promising a future where its agricultural, waste management, and environmental benefits are widely utilised.
Incorporating the role of smallholder farmers, biochar’s potential impact expands significantly. Engaging these farmers on a broad scale could lead to massive uptakes in biochar use, greatly enhancing agricultural productivity and carbon sequestration globally, thus marking a transformative approach in both agriculture and climate strategy.
Upholding Additionality
As the carbon removal sector evolves, ensuring the principle of additionality becomes paramount. This means every project must contribute to a net decrease in atmospheric CO2 that wouldn’t have occurred otherwise. Challenges include setting accurate baselines and avoiding the double-counting of benefits. The sector is turning towards more rigorous verification processes and transparent reporting to ensure that projects deliver real climate benefits. Regulations and standards are becoming stricter, demanding that projects demonstrate tangible, additional environmental benefits, thus maintaining the integrity and effectiveness of carbon removal initiatives.
The Ongoing Importance of MRV
The importance of MRV is set to increase as the carbon removal sector grows. Enhanced MRV systems are being developed to more accurately quantify and verify the impact of carbon removal projects. This includes advancements in satellite monitoring, AI, and blockchain for data integrity.
As the market matures, stakeholders are demanding more precise and reliable data, making MRV a cornerstone of future carbon removal strategies and ensuring that projects are environmentally effective and economically viable.
Summing up the outlook
The year 2024 stands as a critical juncture for the carbon removal sector. With increased investments, emerging trends, and continuous innovation, the sector is poised to make significant strides. However, it will require concerted efforts across policy, technology, and market dynamics to realize its full potential. As we navigate this crucial year, the collective ambition, collaboration, and innovation within the sector will be key drivers in our journey towards a sustainable future. The path is set for a transformative year in carbon removal — a journey we must embark on with urgency and hope.
If you’d like more more information on how Biochar Life are working with smallholder farmers to sequester thousands of tonnes of CO2. Get in touch at: hello@biochar.life
