Sustainable Markets Initiatives in Action

SMI Pathfinders

    Pathfinders

    Pathfinder

    Carbon Removal Technologies

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    Pathfinder Carbon Removals

    The global carbon dioxide removal (CDR) market is projected to grow from $2 billion in 2025 to $175–250 billion by 2035. Even with aggressive decarbonisation, industry sectors will continue to produce residual emissions requiring scalable, high-quality carbon removal.

    Problem statement

    • Insufficient and fragmented demand signals stalling supply scale-up: Uncertain buyer demand keeps capital on the sidelines 

    • High costs and financing barriers blocking industrial-scale deployment of engineered CDR: Carbon removal technologies currently cost $100–$1,000 per tonne depending on the pathway. Reaching commercially viable thresholds requires concessionary capital, pre-purchase agreements, and long-term offtake contracts (10+ years) to de-risk developers. Without innovative financing models and policy the learning curve cannot be accelerated at the pace required. 

    Implementation pillars

    1. Recognition of Best Practice 

      The CDR market requires professional, auditable global standards that give Boards and CEOs the confidence to make large-scale investments.  

    2. Customer Needs — Demand Commitments 

      Across the SMI network, the Pathfinder will explore demand for CDR projects and PPA-style infrastructure agreements. 

    3. Viability — Pathways & Finance 

      In 2025 the SMI FSTF developed a report (CCUS). Lessons from this will be used to explore pathways for CDR. Recommendations include developing industry-specific concessionary capital funds and innovative financing models essential to accelerate the CDR learning curve and build bankable projects. 

    4. Showcasing & Amplification 

      By showcasing the full portfolio of viable CDR pathways :Nature-based, hybrid, and engineered , with transparent cost curves and real-world performance data, the SMI will position carbon removal as a core financial and operational strategy.