1. Climate Context and the Role of Carbon Dioxide Removal

Global efforts to limit warming to 1.5°C or well below 2°C, as articulated in the Paris Agreement, require a two-pronged approach: steep reductions in greenhouse gas emissions alongside the active removal of carbon dioxide (CO₂) from the atmosphere. Even if all major economies rapidly decarbonize their power systems and transition to cleaner fuels, certain "hard-to-abate" sectors - such as aviation, shipping, cement, steel, and agriculture - will continue to generate residual emissions well into the middle of the century.

Carbon dioxide removal (CDR) is uniquely positioned to address this gap. Unlike avoidance or reduction measures, which prevent future emissions, CDR directly reduces the atmospheric concentration of CO₂. This distinction makes CDR indispensable for achieving net-zero targets and eventually progressing toward net-negative global emissions.

Although the science is clear about the necessity of CDR, the sector remains in a formative stage. Technologies are often expensive, infrastructure is limited, and standards for monitoring and verifying removals are evolving. These uncertainties pose a challenge for financing, because investors and lenders typically require stable, predictable revenue streams before committing significant capital. Without financial confidence, the deployment of CDR technologies cannot reach the scale that climate goals demand.