On a global scale, emissions are not on track to meet Net-Zero Target by 2050. As we race for a change, it has become clear that Carbon Removal is a vital, irreplaceable tool. A select group of companies are at the forefront of developing carbon removal projects, and their efforts range from pioneering new technologies to implementing nature-based solutions at scale.  

Their contributions have been invaluable in the fight against global warming. Here we outline some of the top project developers within the carbon removal space and explore their distinct approaches.  

In addition, in the article we share a list of leading carbon credit buyers/users who are actively funding carbon credit space in this article.

Carbon Credit Developers by Capital Raised 

Here is an overview of five leading carbon credit project developers who have raised significant amount of capital. Notably, those specializing in advanced removal technologies such as Direct Air Capture (DAC) have attracted the most funding. These high-tech solutions are still in the early stage of development, but promise significant long-term CO2 capture and storage capabilities. The permanent nature of these solutions is particularly appealing, prompting investors and corporations to fund their product development and scaling.

• Climeworks: Founded in 2009 and based in Zurich, Switzerland, Climeworks has pioneered Direct Air Capture (DAC) technology to accelerate carbon removal. It has one of the world’s largest Direct Air Capture & Storage (DAC+S) plants. In 2022, Climeworks raised the largest-ever equity round into DAC at CHF 600 million (c.US$ 650 million), co-led by Partners Group and GIC. This funding round is aimed to scale the Direct Air Capture up to multi-million-ton capacity and implement large-scale facilities as carbon removal becomes a trillion-dollar market. YTD Climateworks has raised a total of US$ 810 million and is working with over 160+ large corporations eg. Microsoft, JP Morgan, Shopify. (1; 2; 3).
• ‍1PointFive (Occidental): In 2023, Blackrock announced a US$ 550m investment into Occidental Petroleum Corp’s Direct Air Capture (DAC) plant in West Texas, known as the STRATOS Project. Blackrock signed a JV with Occidental through its subsidiary 1PointFive which owns Stratos. DAC is a technology that captures and removes large amount CO2 directly from the atmosphere. STRATOS is designed to capture up to 500,000 metric tons of CO2 annually once complete, and its commercial operations are expected to begin in 2025. (1, 2, 3)
• ‍Anew (formerly Blue Source): Founded in 2001, Anew is a leading player in providing offset credits from Improved Forest Management and Carbon Capture projects. While specific investment figures are unavailable, the company has historically been involved in significant transactions and is known for its extensive portfolio of environmental commodities extending across 5 continents. Unlike traditional project developers, Anew serves multiple functions as a broker, trader, retailer and advisor in the carbon space. Some of Anew’s key achievements include: developed projects on 3.5 million acres of forest and farmland, provided 240+ million of diesel gallons equivalent of renewable fuels for transportation, and transacted 150+ million tonnes of carbon. (1)
• ‍Finite Carbon: Founded in 2009, Finite Carbon is one of the largest developers of Forest Carbon offsets in North America. The company focuses on Improved Forest Management, and has developed over 60 projects in the voluntary and compliance markets covering 4 million acres of woodlands. Finite Carbon has been responsible for developing and transacting over 100 million offsets, including one-third of California’s compliance offset supply. (1, 2)
• ‍Global Thermostat: Founded in 2010, Global Thermostat is considered to be one of the veterans in the Direct Air Capture (DAC) space. The company has a multi-patented portfolio of solutions for capturing and removing CO2 directly from the atmosphere, and it has received a total funding of US$ 103m. The capital injection demonstrates strong investor appetite to support DAC technologies. However, Global Thermostat has been running behind schedule for some time, and a new CEO was appointed in 2022 to drive the company towards commercialization. (1, 2, 3)

‍Top Carbon Credit Developers by Carbon Credits Issued

The following list outlines the leading carbon project developers based on the number of carbon credits issued. 

• Finite Carbon: Finite Carbon is the largest developer of forest carbon offsets in the United States. The company has developed over 60 projects in the voluntary and compliance markets covering 4 million acres of woodlands. The company has been responsible for developing and transacting over 100 million offsets. Finite Carbon is especially focused on working with landowners, and to date, it has delivered US$ 800 million to landowners. (1, 2)
• ‍South Pole: Founded in 2006 in Zurich, Switzerland, South Pole is a major leader in the Voluntary Carbon Market with 41 offices across 6 continents. The company develops and / or invests in a wide range of emission reduction projects worldwide, and it focuses on serving corporations with large-scale climate action demands. Currently South Pole has over 800 projects in its portfolio, and the project types range from nature-based solutions to sustainable technologies / renewables. (1)
• ‍ClimateCare: Specializing in projects that integrate climate and development goals, ClimateCare has been a key player in generating carbon credits, particularly in the voluntary market. Its projects often focus on clean cooking and water purification, which help reduce carbon emissions and improve health & economic outcomes for communities in developing countries. Since its merger with Natural Capital Partners in 2021, the combined group has reduced more than 100 million tonnes of CO2e. (1, 2) ​
• ‍Anew (formerly BlueSource): With 20+ years of operating experience, Anew has transacted over 150 million tonnes of carbon. Anew operates across five continents, and has an extensive portfolio of projects, types ranging from forest management to carbon capture. The company is considered to be a major player in the global carbon credit market​ (1).
• ‍3Degrees: Over the past 15 years, 3Degrees has established itself as a pioneer in offering tailored climate solution approaches. It manages a portfolio of diverse carbon reduction and removal offset projects, including nature-based solutions and schemes like landfill gas capture. (1, 2)

‍Top Carbon Credit Developers for Nature-based Projects

Nature-based solutions refer to projects that utilize natural processes to remove or avoid carbon emissions. These solutions often focus on the restoration, conservation, and sustainable management of ecosystems such as forests, wetlands, and grasslands. Some of the most popular nature-based projects include Afforestation, Reforestation, Improved Forest Management, and Peatland Restoration. Emerging methods also include Blue Carbon, which refers to carbon captured and stored by the oceanic and coastal ecosystems, primarily mangroves, seagrasses, and salt marshes.

Two key concepts for nature-based projects are (1) permanence, ensuring carbon is captured for a long duration; and (2) additionality, proving that carbon savings wouldn't have occurred without the project.

Nature-based projects are popular today. They capture CO2 and often come with co-benefits such as enhancing biodiversity and supporting local communities. However, these projects may face risks of of reversal (e.g. from wildfires) and difficulties in measuring exact carbon impact.

• Finite Carbon: The largest developer of forest carbon offsets in the United States. Finite Carbon focuses on Improved Forest Management, and it has developed over 60 projects in the voluntary and compliance markets covering 4 million acres of woodlands. The company has been responsible for developing and transacting over 100 million offsets, including one-third of California’s compliance offset supply. (1, 2)
• ‍Ecologi: Founded in 2019 in the UK, Ecologi supports reforestation/afforestation and habitat restoration projects globally. To date, the company has funded over 80m+ trees and avoided 3m+ tonnes of CO2e. (1, 2)
• ‍DGB Group: Known for large-scale nature-based project developments, DGB Group is actively supporting governments and corporations in achieving net-zero via nature conservation. The Group’s projects are designed to tackle climate change, while also enhancing biodiversity and the wellbeing of the local communities. In 2022, DGB Group reported a project pipeline of 13.6 million tonnes of carbon credits ready for offtake agreements. (1, 2)

‍Top Carbon Credit Developers for Technological-Based Projects

Tech-based solutions refer to innovative technologies that either remove CO2 from the atmosphere or prevent it from being released. These technologies are critical in tackling global warming, and the tech-based carbon removal credits are often highly sought after due to their permanence nature, effectiveness and scalability.  

Broadly speaking there are 4 types of tech-based solutions: Direct Air Capture (DAC), Carbon Capture and Storage (CCS), Bioenergy with Carbon Capture and Storage (BECCS), and Biochar. While the benefits of high-tech solutions are clear, the development and implementation of these projects are currently very expensive, making cost per credit (per ton) much higher compared to nature-based solutions. In addition, these projects are at early stage of development, and they may be energy intensive (eg. DAC) to operate, at least for now.

• Climeworks: Renowned for pioneering Direct Air Capture (DAC) technology, Climeworks established several facilities worldwide, including the Orca plant in Iceland, which is one of the world largest Direct Air Capture & Storage (DAC+S) plants. The company’s technology is distinguished by its solid sorbent filters. It has partnered with many global corporations to accelerate the development and deployment of carbon capture technologies.​ (1,​ 2).
• ‍Carbon Engineering: Based in Canada, Carbon Engineering has been a significant player in the Direct Air Capture (DAC) space. It uses a liquid DAC process involving a potassium hydroxide solution to capture CO2. The company has received substantial investment from high-profile investors like Bill Gates and Air Canada. The company has licensed its DAC technology to 1PointFive with the goal to scale a new plant capable of capturing 1 million one million tons of CO2 annually by 2024. (1, 2,3).
• ‍The Next 150: Founded in 2022, The Next 150 is a developer and operator focusing on Biochar Carbon Removal (BCR) projects. Since its inception, the company has quickly established its name in the carbon removal space, and secured a large-scale agreement with Microsoft to provide 95,000 tonnes of biochar carbon removal credits. (1, 2)
  

Extra: The Leading Carbon Credit Buyers / Users  

• Microsoft: The tech giant has been active in buying carbon removal credits to further its climate commitments. Some of its latest actions include buying: (1) 1.5 million nature-based carbon credits to support reforestation projects in the Brazilian Amazon, (2) 350,000 nature-based carbon credits from Kenyan Agroforestry Project, (3) 95,000 carbon credits from a biochar plant in Mexico, (4) 315,000 tech-based carbon credits (c.US$ 20 million) from Heirloom (Direct Air Capture), and (5) c. 2.7 million nature-based carbon credits through a 15-year contract with Chestnut (tree planting in the Mississippi Alluvial Valley). (1, 2, 3, 4, 5, 6)    
• ‍JP Morgan: In 2023, JP Morgan signed long-term agreements to purchase over US$ 200 million worth of carbon removal credits. These credits are intended to remove and store 800,000 metric tons of CO2e. The investment includes Direct Air Capture and Storage (DAC+S) credits from Climeworks, which is set to deliver 25,000 mtCO2e carbon removal services, purchase of bio-oil carbon removal credits from Charm Industrial, removing and storing c. 28,500 mtCO2e over 5 years, long-term agreement with CO280 Solutions Inc to purchase up to 450,000 mtCO2e removal credits, and US$ 75m commitment to Frontier to help to accelerate carbon removal efforts. (1)
• ‍Shell: One of the early users of carbon credits. In 2023, Shell continued its investment in carbon credits, allocating US$ 86 million towards both nature-based and technology-based projects. Additionally, Shell also retired approx. 5.8 million carbon credits in 2022, which were used to compensate for emissions from various sources incl. non-energy products and business travel. (1, 2)

In addition to the above, it is worth mentioning that Alphabet, Microsoft and Salesforce have collectively pledged to buy US$ 500 million in carbon removal by 2030 as members of the First Mover Coalition. In addition, Frontier, an advance market commitment to buy permanent carbon removals have received a total funding of US$ 925 million from Stripe, Alphabet, Shopify, Meta, and McKinsey.  (1, 2)