Motivations and challenges for carbon dioxide removal development: empirical evidence from market practitioners

Abstract Carbon dioxide removal (CDR) is critical in mitigating climate change. Currently, its deployment is largely driven by voluntary actions from private organizations rather than by policy mandates. In this formative phase of the CDR sector, the important role these organizations play is acknowledged, yet there are scarce empirical insights into their perspectives. This study explores the role of private companies in shaping the early CDR innovation ecosystem by conducting 79 interviews with senior practitioners (suppliers, purchasers/marketplaces, investors) actively involved in CDR markets. Examining their motivations, I find themes that range from personal upbringing and caring for the following generations to being catalytic in the creation of a new industry. All motivations are grounded in the recognition of CDR as an important component of global climate change mitigation. Identified challenges stretch across the categories of technology, organizations, policy and regulation, ecosystem, finances, and the public eye. This presents a complex picture, as all actors seek to solve a multi-faceted, concurrent coordination and scaling problem while dealing with a challenging set of uncertainties. For suppliers, the main challenge is to coordinate with other actors while proving their technology and not losing track of their long-term strategies. Investors and purchasers currently struggle to formulate a case that is suitable for their organizations in the absence of regulation. The analysis underscores the underexplored yet significant role of private organizations in CDR governance and market development, thus addressing a gap in the existing literature. In conclusion, I offer directions for measures that support a timely, efficient, and responsible scale-up of CDR.