Carbon removal stands at an inflection point. In just five years, the field has seen a surge of corporate purchases, billions in federal investment, and a wave of new startups. Now, shifting political and economic conditions are reshaping the landscape. With this new reality, CDR advocates are asking what it will take for carbon removal to succeed?
To explore this, Carbon180 joined the Carbon Removal Alliance, Stripe, and Heirloom for an afternoon of programming at New York Climate Week. Together, we gathered federal and state policymakers, market leaders, and policy experts to chart the pathways necessary for carbon removal to succeed at the pace we need.
Setting the stage
Senator Sheldon Whitehouse opened the event, highlighting the policy progress made in recent years, but underscoring the urgency of building durable, bipartisan support for carbon removal. Referring to CDR as “one of his babies,” he emphasized that nearly all remaining climate pathways now rely on overshoot and recovery, making carbon removal indispensable.
Senator Whitehouse pointed to opportunities through pending legislation such as the Carbon Dioxide Removal Leadership Act. He also underscored the importance of economics in carbon removal’s long term success, noting that the Biden administration had raised the social cost of carbon to $190 per ton. Pairing a meaningful price on carbon with incentives like 45Q, he argued, would fundamentally change the business case for carbon removal developers.
Policy pathways
The first panel focused on policy landscapes both domestically and globally. In California, State Senator Tim Grayson described the recently signed Cap-and-Invest program, which has been extended through 2045, making technologies like DAC eligible alongside the state’s low-carbon fuel standard.
In Canada, carbon removal is increasingly recognized as a potential driver of economic growth given the trade war with the US. Now seen as necessary by the federal government, Canada is now planning for 11 million tons of removals with growing interest and opportunities for marine CDR. The EU has brought important regulatory structures, creating the first Carbon Removal Certification Framework and launching a purchasing program to stimulate demand for high-quality removals. Down under, Australia has just released its Net Zero Plan, a multi-sectoral roadmap to 2050 that integrates carbon removal alongside the country’s vast renewable energy potential and significant co2 storage capacity. Together, the discussion showcased how governments are beginning to mainstream carbon removal, even as questions of quality, delivery, and public benefit remain front and center.
Market pathways
The next panel featured speakers from Stripe, Amazon, and McKinsey — three of the most influential early adopters of CDR investment. Despite shifting political winds, panelists noted that appetite for investment remains, even if less visible than in recent years. They cautioned, however, that a wave of corporate retreat from climate commitments or major technological failures could undermine confidence.
When asked what they would do differently if they could rewind the clock, all panelists began by saying that they had done things well but wished they had moved money more quickly, pointing to both the urgency of capital flow and the difficulty of assessing permanence and durability in new projects. They also said that closer alignment with policy early on could have smoothed challenges. Panelists also noted the value of balancing nature and tech-based pathways, suggesting that a blended approach could make removals easier to trade.
Looking ahead
Across both panels, a clear theme emerged: there is much to be hopeful about the future of CDR, but its success will hinge on stronger policy frameworks, stable market signals, and durable public trust. With commitments from federal leadership, state innovation, global partners, and private-sector actors, carbon removal can continue to succeed at scale.
Featured speakers:
Senator Sheldon Whitehouse, Rhode Island
Senator Tim Grayson, CA District 9
Christoph Beuttler, Carbon Gap
Na’im Merchant, Carbon Removal Canada
Henry Adams, Climate Recovery Institute
Nan Ransohoff, Stripe
Isabelle Schuhmann, McKinsey
James Mulligan, Amazon
Thank you to our partners Carbon Removal Alliance, Stripe and Heirloom.