Show Article Overview

5 Essential Steps for Carbon Removal Suppliers to Build a Market-Ready Carbon Removal Project

How to build a market-ready CDR project

If you’re a carbon removal supplier preparing to enter the carbon market, the work starts long before a shovel hits the dirt. To secure financing, certification, and offtake agreements, your project must be structured for credibility, scalability, and verification from day one.

Follow these five proven steps to take your carbon removal project from concept to market-ready, securing financing, certification, and buyer trust along the way, based on expert insights from the Carbonfuture team and best practices from leading suppliers.

1. Design Your Project for the Full Carbon Removal Lifecycle

Plan from day one for feedstock sourcing, transport, storage, certification, and credit issuance. Avoid the trap of focusing only on production, as buyers will probe durability and delivery.

  • For Biochar Carbon Removal (BCR): Secure a consistent supply of eligible feedstock, such as agricultural residues or forestry waste, and establish a clear, long-term application plan.  
  • For Direct Air Capture and Storage (DACCS): Don’t stop at CO₂ capture. Confirm infrastructure for durable geological storage and model future cost implications.

Pro tip: Document your lifecycle assumptions up front, outlining any handoff and responsibility across the entire value chain. It will speed up due diligence and third-party validation.

2. Build a Financial Model Buyers and Investors Will Trust

Develop a credible, transparent model backed by proven or clearly forecast revenue streams to secure financing and long-term contracts. Investors and buyers won’t commit without proof that your project is viable. Here’s how to get started:

  • Choose the right funding model for your project stage: venture capital, grants, debt, or blended finance.  
  • Engage potential partners early to signal demand to funders and de-risk your profile.
  • Consider project insurance to reduce perceived risk and attract institutional partners.

Learn from the experts: Tackle the capital challenge with Carbonfuture’s carbon removal project financing guide, packed with tools, strategies, and insights to help you secure funding and scale with confidence.

3. Select Certification and MRV Strategies That Future-Proof Your Project

Choose high-quality third-party standards and integrate independent digital Monitoring, Reporting and Verification (dMRV) early to ensure compliance with the European Carbon Removals and Carbon Farming (CRCF), Green Claims Directive (GCD), and Emissions Trading System (ETS) requirements when they become available.

  • Research the methodologies and standards available for your choice of technology, or work with a partner who’s already done the research and align your project design and goals accordingly.  
  • Incorporate MRV like Carbonfuture MRV+ into your project before you start construction to ease the incorporation of data collection needs.
  • Consider your long-term certification needs – as standards and systems evolve with the market, look for flexible options that can scale with your project.  

Why dMRV? A dMRV like Carbonfuture MRV+ can digitize data collection, accelerate time to certification, and get your trusted, high-quality credits onto the market faster.

4. Prepare for Buyer Due Diligence from Day One

Organize operational, financial, and environmental data early to remove deal-killers, build buyer trust, and accelerate offtake agreements. Remember, during the due diligence process, buyers are doing more than evaluating your credits. They’re assessing you as a potential partner.

  • Expect intense scrutiny into your operations, finances, and even your brand. Reputable buyers will assess your team, operations, financial model, and much more.
  • Be transparent and prepare all relevant information up front, including technical documentation, contracts, and environmental impact.
  • Integrating digital MRV ahead of time can help prepare you for this step and provide another layer of trust for buyers.

Pro tip: Address any potential red flags up front. Minor issues become major ones if they’re kept from auditors.  

5. Develop a Go-to-Market Plan That Moves Your Credits Fast

Identify the right buyer segments, streamline certification timelines, and set realistic delivery targets to turn high-quality removals into revenue without delays.  

Remember, no matter how high-quality the project, it can still fail to reach buyers without a credible sales strategy. Don’t leave this to chance – plan this early and be ready to adapt your approach based on changing market conditions. The CDR market moves quickly, and you will need to be nimble to capitalize on potential opportunities.

  • Look for buyers with long-term sustainability plans, or partners with strong buyer connections that can support your sales and marketing efforts.
  • Streamline your certification pipeline to ensure efficient delivery. Optimizing data collection and operations can help prevent issues down the line.
  • Don’t put yourself into a bad position when negotiating by overpromising (and potentially underdelivering). Set the stage for future agreements by setting realistic targets.

Stay in the know: The latest news in the CDR industry often breaks on LinkedIn. Keep up to date and follow key influencers and organizations like Sebastian Manhart, Eve Tamme, and CDR.FYI (and of course, be sure to follow Carbonfuture on LinkedIn as well!).

Ready to Plan for the Future?

Markets evolve, regulations tighten, and standards change. Your CDR project needs to be built for the long term, not just today’s market. Carbonfuture MRV+ is the most comprehensive digital MRV solution for durable carbon removal, ready to scale and grow with your business. If you’re looking to make your CDR project future-proof and stay compliant as regulations evolve, contact the Carbonfuture team today.

FAQ

What is Biochar Carbon Removal (BCR)?

Biochar is a stable, carbon-rich material produced by heating biomass in a low-oxygen environment. When applied to soil or used as an additive in durable materials, it sequesters carbon away for hundreds to thousands of years. Learn more: https://www.carbonfuture.earth/cdr-technology/biochar-carbon-removal

What is Bioenergy with Carbon Capture and Storage (BECCS)?

BECCS is a carbon removal method that captures carbon dioxide from biomass-based energy systems to create a closed-loop system that removes carbon from the atmosphere. Learn more: https://www.carbonfuture.earth/cdr-technology/bioenergy-with-carbon-capture-and-storage

What is Direct Air Carbon Capture and Storage (DACCS)?

Direct air capture utilizes sorbent- or solvent-based systems to capture carbon dioxide directly from the air, allowing it to be sequestered either in durable materials like concrete or by injecting it into deep rock formations underground. Learn more: https://www.carbonfuture.earth/cdr-technology/direct-air-carbon-capture-and-storage

What does market-ready mean?

Market-ready means your project has secured financing, is certified under a recognized standard, has integrated digital MRV, and is ready to deliver credits to buyers.

What is digital Monitoring, Reporting and Verification (dMRV)?

Digital monitoring, reporting and verification is a set of processes and protocols used to track, measure, report, and verify the amount of carbon dioxide removed from the atmosphere and durably sequestered from carbon removal activities. Learn more: https://www.carbonfuture.earth/products/mrv

What is the Carbon Removal and Carbon Farming (CRCF) regulation?

The CRCF, first proposed by the European Commission in 2022, sets out to create a unified certification scheme for carbon dioxide removals like BCR, BECCS, and DACCS.

Suggested Articles for You