2. Goal and Scope of this Guidebook

The global CDR market is largely voluntary and still in its early stages. As a result, limited efforts have been made to streamline transactions between CDR credit suppliers (suppliers) and CDR credit buyers (buyers), or to establish consistent processes among suppliers, third-party MRV providers, and buyers. This lack of standardization contributes to high transaction costs, market inefficiencies, and limited trust between participants.

To help address these challenges, this guidebook aims to build greater confidence and reduce friction in the voluntary carbon market (VCM) by promoting the use of standardized contractual frameworks and clarifying the processes for CDR credit delivery, MRV, and sale. It supports the use of the Open Standard Carbon Removal Purchase Agreement (OSCAR) by offering practical, article-by-article guidance that supplements OSCAR and reflects evolving market practice.

While relevant to all market participants, this guidebook may be especially useful for smaller buyers or first-time market entrants, who may lack internal contracting or technical expertise. By improving understanding of key commercial terms, legal provisions, and implementation steps, this guidebook helps stakeholders use OSCAR responsibly and effectively, supporting more transparent, consistent, and trustworthy transactions across the CDR ecosystem.

This guidebook is not intended to serve as an overview of CDR technologies or broader market dynamics. Rather, it focuses on actionable insights into the legal, financial, and operational components of successful CDR contracting. It draws on legal review, stakeholder interviews, contributions, and transactional experience to reflect current best practices and identify areas of ongoing development.

The objective of OSCAR and this guidebook is to reduce the time, cost, and complexity involved in negotiating CDR credit offtake agreements (Offtake Agreements). By offering interpretive guidance, sample provisions, and best practices, we aim to accelerate deal flow, improve stakeholder alignment, and lay a contractual foundation to support voluntary market growth and enable greater participation, particularly from new or smaller buyers.

OSCAR is based on U.S. law, but the concepts and the questions addressed therein apply universally. OSCAR, however, would need to be amended and adjusted on a jurisdiction-by-jurisdiction basis depending on the applicable law chosen by the parties thereto.