As Carbon180 marks its tenth year, 2025 tested the carbon removal field we’ve spent a decade building, and reminded us why this work matters more than ever. This year was defined by major shifts in policy, advances in pathway-specific technologies, changes in community engagement, and shifting federal support. While some aspects of the field saw progress, others faced uncertainty. Together, these developments reveal a carbon removal field still in progress, tested by the many challenges of this year, but still working to achieve the policy and community and market support necessary for meaningful climate action.
A year of uncertainty for DAC
Direct Air Capture (DAC) experienced very real obstacles this year. After a few years of unprecedented federal policy support, the most significant of these – the $3.5 billion DAC Hubs Program – was thrown into uncertainty with the change in administration. Previously awarded projects were paused, scaled back, or cancelled outright. At least one DAC company announced plans to move its operations out of the US and into Canada.
At the same time, more states received primacy for Class VI permits and the 45Q tax credit was maintained, with an increased value for enhanced oil recovery. Keeping 45Q on the books can be a lifeline to DAC companies, but setting the credit at the same level for both geologic storage and EOR is not the right kind of incentive for climate-forward DAC deployment.
Despite these federal challenges, private sector activity continued to expand. DAC developers have secured more than $2 billion in investment and the total offtake purchase volume is over two and a half million tons of CO2.
Regardless of the US federal government, CDR purchases continue to grow, driven by consumer preferences and both national and corporate climate commitments.
Policy changes reshaped the landscape
Policy was a dominant factor influencing the progress and future of carbon dioxide removal this year. For technology-based carbon removal this included the cancellation of $24 billion in clean energy programs, a realignment of DOE’s mission toward fossil-fuel priorities, and the unraveling of several federal CDR initiatives. Carbon management was removed from the name of the office formerly known as the Office of Fossil Energy and Carbon Management (FECM). With a DOE re-organization, the Office of Fossil Energy was turned into the Hydrocarbons and Geothermal Office. Additionally, anticipated CO2 pipeline safety standards were withdrawn.
The land side also saw its own disruptions. With still no full five-year Farm Bill, key programs were extended through reconciliation or short-term measures, sometimes with modifications that affected implementation. However, the Inflation Reduction Act (IRA) funded Climate Smart Commodities Program and regional Climate Hubs were terminated, affecting producers and land managers who relied on their support. On a promising note, several pieces of legislation to improve soil health on agricultural land, such as ARASHA, the Innovative Practices for Soil Health Act, and the Coordination for Soil Carbon Monitoring and Research Act, were introduced.
Across pathways, the One Big Beautiful Bill reversed key provisions supporting CDR at the federal level, such as cuts at DOE and NOAA and redirecting billions in conservation funding away from climate-smart agriculture and eliminating Forest Service funding for critically needed environmental reviews and old-growth forest protection.
Policy has heavily impacted the private sector, as developers move projects abroad for better incentives and more stable policy environments, both needed for CDR to succeed at scale.
Continued momentum for marine carbon dioxide removal (mCDR)
One of the year’s clearest developments was the increase in attention to marine pathways to carbon dioxide removal, driven by a stronger scientific foundation.
Ocean alkalinity enhancement deployments, including the LOC-NESS field trial and work by Ebb Carbon, demonstrated no measurable impacts on water quality indicators such as temperature, salinity, turbidity, or oxygen. Regulatory pathways advanced in parallel, with the issuance of both an EPA permit for LOC-NESS and the first-ever Clean Water Act permit for an mCDR project. The issuance of the first OAE carbon credits was an important market milestone.
Shifting community dynamics and engagement needs
In several regions, the growing association between data centers and DAC made discussions around tech-based carbon removal more sensitive. Under the new administration, new Executive Orders targeted the consideration of environmental justice in federal decision-making. With federal environmental justice requirements rolling back, protections now vary state by state, leaving communities in states without strong environmental justice commitments at greater risk.
Despite federal policy challenges, the need for just and equitable carbon removal hasn’t diminished, nor should the commitments from developers to deploy projects in a way that protects communities and their autonomy.
New year brings new promise
We are encouraged by the recent re-introduction of the Partnerships for Agricultural Climate Action (PACA) Act, a bill that would fund locally-led agricultural climate projects through those who know their land best — states, Tribes, conservation districts, and farmer cooperatives. Expected in late 2025 or early 2026, the introduction of an additional Carbon Border Adjustment Mechanism bill from the Senate Environment and Public Works minority will be an important milestone for this era of carbon removal policy. With anticipated two Senate bills on carbon border adjustment mechanisms, there is a political path forward to reduce global emissions while protecting American manufacturing.
Across land, tech, and ocean pathways there were several wins in drafted appropriations language for FY27. The appropriations process continues to offer an opportunity to advance carbon removal efforts, even as federal climate action remains uncertain.
Looking ahead
Carbon removal has ridden a big wave of support, with landmark legislation passed in 2021 and 2022, buoyed by private sector support in 2023 and real-world deployments in 2024. As CDR matures, there are more people asking what it will take for carbon removal to succeed at scale.
To not lose progress, we need to build the next wave of pathway-specific policy, continue to invest in quality CDR, and broaden the tent of those who see themselves as engaged in CDR advocacy — states, communities, mainstream climate advocates, and companies. Our future depends on it.
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Edited by Ana Little-Saña. Image by Clarisse Croset.