Carbon dioxide removal involves taking carbon dioxide out of the atmosphere and then storing it — for hundreds of years, potentially — so that it does not go back. Alongside efforts to more directly reducing greenhouse gas emissions, carbon dioxide removal is needed to help the world reach net-zero emissions — and keep global warming below 1.5 degrees Celsius, which is the target set in the 2015 Paris Agreement.
Carbon dioxide removal (CDR) needs a lot more financial support to be able to reach its full scale and technological potential, but so far the number of corporations and institutions buying into it is limited. To help better understand the potential market for expanding carbon dioxide removal, as well as any barriers, the Pembina Institute’s CDR Centre conducted a survey of 202 organizations to gauge corporate interest.
This is one of the first public buyer scans in Canada.
The results of the scan will help inform the strategy of the CDR Centre, so we can maximize the impact our tools and resources can have on increasing the number of buyers in Canada.
Pembina Institute
Nearly 90 per cent of those organizations did not respond to the survey, so the report focused on the small number that did. That included 14 “curious newcomers,” which the report described as those who responded to the questionnaire but do not at this time plan to buy CDR credits. Most of those were in public administration. There were also eight “engaged buyers,” defined as those who have “active plans to purchase durable CDR credits.” They primarily come from finance and insurance industries and can help drive growth.
The report recommends different strategies for each group: broad outreach and education for “curious newcomers” to help them learn why they should buy CDR credits, as well as more targeted support for the “engaged buyers” group to help them keep playing a leadership role in accelerating the growth of CDR.
Curious Newcomers
Initial resources will help answer questions such as: how are CDR credits different from traditional carbon offsets or renewable energy credits; why is there such a price difference between credit types; where on the decarbonization cost curve do CDR credits fall; and when is it the appropriate time in a sustainability journey to engage
“A scan of carbon dioxide removal buyers in Canada (2024),” by Carson Fong & Margret Nellissery, Pembina Institute, July 2024
in CDR purchases.
Engaged Buyers
Engaged Buyers are already interested in CDR and would benefit most from in-depth, niche resources that provide valuable information they could apply to their procurement approach. These would include resources that help the buyers manage risks in purchase agreements, information sharing from experienced buyers and technology trends.
“A scan of carbon dioxide removal buyers in Canada (2024),” by Carson Fong & Margret Nellissery, Pembina Institute, July 2024
Download the full report originally published by the Pembina Institute on July 18, 2024.
