Engineered Carbon Removal Was Supposed to Be Getting Cheaper. Prices Are Going Up.

Prices for engineered carbon removal credits are rising instead of falling, challenging earlier expectations that scale and technological progress would rapidly reduce costs. Market data shows biochar carbon removal prices have increased around 10%, while direct air capture (DAC) prices rose approximately 11%. Industry participants say early pricing was overly optimistic and heavily supported by venture capital, while current projects now require commercially viable returns and face rising operational costs. Strong demand for high-quality removals and limited supply from proven projects are also contributing to higher prices. Market observers note that future cost reductions may depend less on scale alone and more on integrated industrial systems, byproduct monetization, and broader carbon, energy, and materials ecosystems.
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