The Acceleration of CDR: Corporates Shift From Offsets to Long Term Carbon Strategies

January’s carbon market developments highlight a structural evolution in how corporates approach carbon removal. Rather than relying on generic offsets, leading companies are increasingly constructing nuanced, multi-tier portfolios that combine both scalable nature-based removals and long-duration engineered solutions.

In the United States, Nature-Based Solutions (NBS) removals are reaching unprecedented scale. Grassroots Carbon delivered 1.9 million tons of verified soil carbon removals, with more than 1.5 million tons already retired by major corporates including Microsoft and Nestlé. While soil carbon is typically classified as a non-durable removal due to its biological storage characteristics, the project demonstrates that large-scale deployment and corporate confidence can be achieved when supported by rigorous MRV frameworks, including deep soil sampling and microbial DNA analysis.

Policy support is further accelerating this trajectory. Under the U.S. Inflation Reduction Act (IRA), generous subsidies for Direct Air Capture (DAC) are establishing price floors and financial certainty for industrial-scale carbon removal projects. This policy environment is helping engineered CDR technologies progress from early-stage experimentation toward commercially viable infrastructure.

At the same time, corporate procurement strategies are being reshaped by evolving global standards and rapidly expanding demand. According to the CDR.fyi leaderboard, Microsoft continues to dominate the market as the largest purchaser of carbon removals, securing future supply through aggressive long-term offtake agreements. This shift toward high-durability, engineered removals aligns closely with the trajectory outlined in the SBTi Net Zero Standard V2, which increasingly emphasizes the role of long-lived CDR in neutralizing residual emissions by 2035. Meanwhile, the introduction of ICVCM Core Carbon Principles (CCP) and intensifying regulatory scrutiny on greenwashing—particularly within the EU—are pushing Western corporates to prioritize durable removals capable of withstanding both regulatory and reputational scrutiny.

On the supply side, mechanisms such as Puro.earth’s on-demand issuance service and Frontier’s advanced market commitments are expanding the pipeline for measurable carbon storage. However, a notable geographic divergence is emerging in the demand landscape.

While Western technology companies are aggressively securing high-durability CDR supply, demand among Asian corporates remains significantly more cautious at current price levels. Many Asian buyers continue to prioritize traditional offsets or scalable NBS solutions, reflecting both cost sensitivity and the earlier stage of corporate decarbonization strategies in the region.

This divergence may have important implications for future market dynamics. If global standards such as SBTi increasingly favor durable carbon removal, companies that delay engagement with high-durability supply could face tighter availability and higher procurement costs in later phases of the net-zero transition.

Welhunt View
We believe the carbon market is entering a phase where durability, MRV robustness, and policy alignment will increasingly define credit value. As durability tiers become a central organizing principle of the removal market, the ability to bridge emerging CDR supply with evolving regional demand will become a key capability for carbon market intermediaries.