Which Carbon Removal Methods Are the Most Cost-Effective?

raquelgoulartra
29 minutes ago
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This article is published in collaboration with Statista

by Tristan Gaudiaut

As the world grapples with the urgent need to limit global warming to less than +2.0°C, carbon dioxide removal technologies have moved from the margins to the mainstream of climate strategy. According to the IDTechEx Technology Innovations Outlook 2025-2035, the global carbon capture and storage capacity has tripled over the past decade, stimulated, among other things, by a significant increase in government subsidies. In 2011, only 19 million tons of CO₂ were captured each year globally. As of 2023, this had risen to a modest 52 million tons per annum, still accounting for only 0.1 percent of anthropogenic emissions. IDTechEx forecasts an explosion of CO₂ capture and storage capacities in the coming years, to reach 1.2 billion tonnes annually by 2035, or 3 percent of current anthropogenic emissions. Nevertheless, the market intelligence company estimates that "this will still fall short of the necessary progress net-zero by 2050 demands".

Carbon dioxide removal technologies encompass a spectrum of different approaches, each with distinct costs, maturity levels and challenges. As highlighted by data published in The State of Carbon Dioxide Removal 2024 report, from the International Institute for Applied Systems Analysis, nature-based solutions, such as forest management and reforestation, remain by far the most cost-effective, with a weighted average price in 2023 ranging from $12 to $16 per ton of CO₂ captured. In addition, reforestation and afforestation technologies are also considered to be at a high level of maturity, with technology readiness levels of 9 (on a scale of 9). However, their potential is constrained by land availability and risks associated with deforestation and wildfires.

In comparison, a mid-range option like biochar, a process in which carbon from biomass is transformed into a stable charcoal-like form, is currently about ten times more expensive. In 2023, the weighted average price to remove one ton of CO₂ through biochar was around $130. With technology readiness levels ranging from 8 to 9, biochar not only already represents a mature technology to sequester carbon, but also enhances soil health and fertility in agriculture. Yet, its deployment is limited by feedstock availability and the need for standardized production and application methods.

At the high-tech end, direct air and ocean carbon capture methods promise a more precise and scalable CO₂ removal, but at a steep price: $700 to $1,400 per ton (weighted average prices in 2023). While the technology readiness levels of those solutions are still advancing (currently: 6 to 8), their energy intensity and high costs remain major hurdles. Most projects rely on renewable energy, but scaling up direct carbon removal from air and ocean will require breakthroughs in efficiency, yield and cost reduction.

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