When?

CDR procurement involves time gaps between purchasing, delivery, and retirement. Durable CDR in particular may require 2–5 years (or more) from contract signing to verified credit issuance. Because of these lead times, buyers with a 2030 net-zero or transition-plan milestone may need to start purchasing now — especially if part of their removals will come from engineered or long-lead-time projects.

At a high level, buyers typically choose between three timing models:

Timing model for purchasing	Spot purchases	Forward purchases	Multi-year offtake agreements
Definition	Buying credits that already exist and can be retired immediately.	Buying credits today that will be delivered in the future (e.g., in 1–3 years)	Long-term commitments where credits are delivered annually over several future years
Payment timing	Ad hoc, on delivery	Typically upfront or milestone-based	Structured payments (e.g. prepayment + on delivery)
Buyer benefits	Low risk, accounting simplicity, flexibility	Price certainty, early access to scarce supply	Supply security, strategic positioning, long-term cost management
Supplier benefits	Immediate cash flow from already-delivered removals	Early access to capital to execute project activities	Securing complementary financing

In cases where payment occurs before delivery, buyers are exposed to delivery and performance risk. To help manage this risk, some buyers use insurance or risk-transfer mechanisms as a de-risking tool for pre-purchases. Buyers can explore these options with carbon insurances or through marketplaces.

Case Study: Wren insuring climate impact with Kita: Partnering with Kita, Wren is able provide upfront capital to fund emerging technologies, while managing risk and uncertainty in their forward purchases. Specifically, Kita helps protect its customers from carbon credit losses due to natural disasters, fraud, insolvency, political risks, and changing carbon standards—offering payouts in cash or replacement credits.

[Image source: Wren]