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Key developments
Climate on agenda at post-two sessions forums
‘UNWAVERING’ ON CLIMATE: “China will “unwaveringly” follow a low-carbon pathway, said environment vice-minister Li Gao at the China Development Forum (CDF) – a high-level and business-focused event traditionally held after China’s two sessions – according to business news outlet China Economic Times. Wang Jinsong, deputy director of the National Energy Administration, said China’s energy system will feature both “multi-energy” sources and “risk resilience”, reported industry news outlet BJX News. Liu Shijin, advisor at the China Council for International Cooperation on Environment and Development said China must develop “accountability mechanisms” and “quantitative” emissions reduction targets, said finance news outlet Sina Finance. CDF attendees included Chinese premier Li Qiang, Ministry of Ecology and Environment (MEE) head Huang Runqiu and National Development and Reform Commission chairman Zheng Shanjie, according to CDF organisers.
‘DEAL WITH IT’: Regarding international tensions over Chinese industrial exports, Bloomberg quoted Premier Li saying “we take our trading partners’ concerns seriously”, adding China has made “positive progress” in tackling the intense competition plaguing several industries, including clean-energy technologies. Nevertheless, consultancy Trivium China said in a note that the broad message at CDF was: “Yes, we’ve got an export-oriented growth model. Deal with it.”

IRAN IMPETUS: Meanwhile, Chinese climate envoy Liu Zhenmin attended the Bo’ao Forum for Asia in Hainan province, where he told Bloomberg that he “expects” the US will return to the Paris Agreement after the Trump administration. He added that the Middle East conflict will “definitely” not cause an oil or gas crisis in China, but had “convinced the government, at all levels, to speed up the energy transition”. (See Spotlight below.)
KOREA COOPERATION: The Bo’ao forum, a high-level platform for policymakers, business leaders and academics often compared to Davos, also featured a China-South Korea climate roundtable, where China Daily quoted former UN secretary-general Ban Ki-moon calling for climate solutions that “transcend borders”. A few days earlier, China and South Korea held their first climate dialogue in seven years, said the World Korea, where talks included this year’s COP31 climate talks in Turkey, renewable energy and carbon markets.
Sinopec says cleantech pushed down profits in 2025
PRE-IRAN SQUEEZE: All of China’s three-largest oil and gas companies saw profits fall in 2025, with Sinopec seeing a 36.8% decline last year due to “rising substitution by new energy” and “weak” margins, according to Reuters. PetroChina’s net profits fell 4.5% year-on-year, said Securities Times, despite an increase in production. CNOOC’s profits were down 11.5% year-on-year, said Reuters, largely due to low oil prices. (These figures predate the impact of the Iran war. Oil and gas firms have been enjoying windfall gains since the start of the conflict.)
EV PROFITS: Meanwhile, a “growing roster” of electric vehicle (EV) manufacturers are becoming profitable, reported industry outlet Inside EVs, with Leapmotor, Nio and XPeng announcing they have recently made profits for the first time. This has come partially at the expense of BYD, which saw its profits fall “for the first time in four years” due to price wars in China reaching a “fever pitch”, reported the Financial Times. A growing number of Chinese car dealerships are focused on EVs, said finance news outlet Yicai. Yicai also reported that dealerships around the world are seeing a “surge” in demand for Chinese EVs as the conflict in the Middle East raises petrol prices.
Ming Yang factory plans rejected
‘UNWISE DEPENDENCIES’: The UK government has rejected plans by Chinese wind turbine manufacturer Ming Yang to invest up to £1.5bn in a factory in Scotland, citing national security concerns, reported the Financial Times. In a statement to the UK parliament, energy minister Michael Shanks said the government “will always act to protect our national security” and is “committed” to developing “resilient and sustainable offshore wind supply chains”. Liam Byrne, chair of the parliamentary business and trade committee, said in a statement that the UK cannot “create…new and unwise dependencies”.
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‘MISSED OPPORTUNITY’: In a response reposted by energy news outlet China Energy Net, Ming Yang said the government has “missed a critical opportunity” to partner with a company that has “no comparable [European] alternatives”. It said it had attempted to address security concerns through proposals such as only processing data onshore. An analysis in the Scotsman said that, while there were “genuine” concerns, “alignment with Japan and the EU on cybersecurity and energy” and US opposition drove the decision. The South China Morning Post cited an unnamed source saying the move was “likely” due to direct US pressure. On the same day, an investment by Danish turbine manufacturer Vestas was approved, reported BBC News, with Maf Smith, director of advisory firm Lumen and previously deputy chief executive of Renewable UK, asking on LinkedIn: “Coincidence?”
‘SKYROCKETING’ SOLAR: Elsewhere, Chinese solar exports to Cuba “skyrocketed” from $5m to $117m between 2023 and 2025 – even before the intensification of the US oil blockade, reported the Washington Post. China and the Philippines are “exploring” oil and gas cooperation in the disputed South China Sea following supply disruptions caused by the Middle East conflict, said Reuters. China has also “exported cargoes of diesel and other fuels” across south-east Asia, said Bloomberg, although Reuters said China would “extend its ban on refined fuel exports into April”.
More China news
- IPCC’S ‘LONGER TIMELINE’: Governments failed to agree if a key climate report should be published in 2028, ahead of COP33, with China among the countries arguing for a “longer timeline”, said Carbon Brief.
- SICHUAN SOJOURN: Premier Li toured several clean-energy sites in a visit to Sichuan province, urging officials to “continuously expand” capacity and “focus” on developing a “new-type power grid”, reported state news agency Xinhua.
- ENVIRONMENTAL CONSTRAINTS: The central government has said small hydropower projects must stay within the limits of what the local environment can tolerate, reported the Communist party-affiliated People’s Daily.
- MEE INVESTIGATES: In recent inspections, the MEE criticised several bodies, including steel, power and coal firms, on “reckless” development of ”dual-high” projects and poor execution of “their…low-carbon transitions”, said the People’s Daily.
- TRADE WAR POSITIONING: China has “launched a sweeping investigation” into US cleantech trade barriers, said Bloomberg.
- ENERGY EFFICIENCY: The Chinese government has published an action plan for high-quality “energy-saving equipment”, including a focus on hydrogen electrolysers and other power equipment, said Xinhua.
Captured

Steel produced by electric arc furnaces (EAFs), as opposed to burning coking coal, could account for at least 73% of China’s total steel production in 2060, according to a report by the Centre for Research on Energy and Clear Air (CREA). Under this scenario, EAF uptake could cause steel-sector emissions to fall to 1.3bn tonnes of carbon dioxide by 2035, “representing a nearly 37% reduction” from peak levels.
Spotlight
How Chinese media has been covering the Iran energy crisis
As the closure of the Strait of Hormuz wreaks havoc on fossil-fuel supplies across the world, a prominent narrative in western media has been that low-carbon energy has helped mitigate the worst of the impact on China. While Chinese-language media has featured similar arguments, it has also highlighted China’s coal industry and broader energy security narratives.
In this edition, Carbon Brief looks at how Chinese news outlets have covered the implications of the US and Israel war with Iran on energy use.
As the conflict intensified, several Chinese-language outlets put the spotlight on China’s clean-energy infrastructure.
The tensions highlight the “importance” of energy security and the energy transition, wrote Bo’ao forum secretary-general Zhang Jun in a commentary for the Communist party-affiliated People’s Daily.
The China Youth Daily, a party-run newspaper oriented towards younger readers, said the conflict has “exacerbated” fragile energy supply chains, underscoring the need to “develop new energy sources for energy security”.
Building “localised” clean-energy capacity is a “strategic necessity”, as well as an important aspect of climate action, wrote Wang Ning, associate researcher at the government-affiliated Institute of World Economy in the state-supporting Global Times.
Meanwhile, Liu Ying, research fellow at Renmin University’s Chongyang Institute for Financial Studies, told Xinhua that China is well-placed to benefit if the crisis catalyses a “restructuring of the global energy order” and hastens uptake of solar and wind power.
Echoing this sentiment, WeChat account Photovoltaic News, which is run by an unnamed individual, said: “New energy is precisely the core of China’s strength.”
Coal is king?
However, the broader commentary on the war has tended to emphasise China’s “all-of-the-above” approach to the energy transition.
A “sharp commentary” in the People’s Daily – a designation for comments that the newspaper finds important – said that a range of initiatives, from “diversified energy imports” to “vigorous development of green energy” allowed China to “secure its energy supply” and “take the initiative in energy security”.
Similarly, an editorial in commercial news outlet 21st Century Business Herald said that China is “less likely to face direct impacts from this oil crisis” because of its reliance on both coal and renewables.
It also noted the opportunity that the conflict represented in terms of greater global demand for Chinese clean-energy technology.
Coal’s role in the energy mix as a “ballast” and “peak-shaving” tool “continues to strengthen”, said economic news outlet Jiemian – although the outlet also acknowledged China’s “vigorous” clean-energy additions.
Pro-coal accounts on WeChat especially emphasised the fuel’s role in the crisis.
Coal will “continue to serve as the cornerstone of energy supply”, said Coal Vision, a WeChat account run by Xiamen Zhengzhuo Trading, a firm that trades coal and other commodities.
Similarly, Guizhou Coal Data argued: “When a real emergency strikes, you have to ask: which energy source do we truly control? There’s only one answer: coal.” The account is run by the information services firm Guizhou Yuteng Coal Industry Big Data Information Center.
Several outlets also highlighted China’s efforts to secure gas supplies from elsewhere.
Wen Shaoqing, columnist at nationalist outlet Guancha, wrote that an agreement between China and Turkmenistan shortly after the conflict began that reaffirmed plans to develop a new gas pipeline represented a “strategic” move to secure the “nation’s survival”.
Notably, two articles in Guancha summarising foreign outlets’ coverage of China’s response – both emphasising the role renewable energy played in insulating China from the energy shock – also received more than 100,000 views.
Security in coal chemicals
Meanwhile, Xinhua published an article on “turning China’s advantage in coal resources into an advantage in developing natural gas”, although it did not explicitly mention Iran. It added that the head of China’s state-owned PetroChina Coalbed Methane Co argued that coalbed methane could “propel China from [being] an energy giant to an energy powerhouse”.
Shortly after the Xinhua article was published, Jiemian said China had a responsibility to develop coalbed methane to “secure our energy self-sufficiency”.
Similarly, several news outlets covered the “boon” that the war might be for China’s coal-chemical industry.
An article posted by WeChat account Xinghai Intelligence Bureau argued that China’s development of a coal-chemical industry, rather than “new energy”, is what prepared it for “worst-case scenarios” such as the war. The account is run by technology media company Beijing Lightspeed Time Network Technology.
Finance news outlet EastMoney said that the “strategic value” of China’s coal-chemical industry will likely rise “against the backdrop of growing global instability”.
Watch, read, listen
RURAL SOLAR: New Security Beat published an on-the-ground look at how a rooftop solar push is playing out in a rural village in China.
TARGET TESTED: 21st Century Business Herald examined China’s new 17% carbon-intensity target, noting that projects already underway will take up a “significant portion of the carbon-emission growth allowance for the five-year plan”.
ELECTRON PIVOT: Redefining Energy spoke to the Oxford Institute for Energy Studies’ Dr Michal Meidan on the factors driving China’s energy transition.
GEOTHERMAL LIMITS: ChinaTalk outlined the evolution of China’s approach to geothermal energy and the constraints that have limited uptake.
470%
How much Chinese solar exports to the Middle East grew year-on-year in the first quarter of 2026, according to WeChat news account Photovoltaic Box.
New science
- “International climate policy actors” play an “overlooked yet critical” role in fostering climate policy “stability” in China through their links with policymakers | Environmental Politics
- Climate change will degrade peatlands in Sichuan province over the coming century, driving biodiversity shifts and a decline in species richness | Frontiers in Plant Science
Recently published on WeChat
China Briefing is written by Anika Patel and edited by Simon Evans. Please send tips and feedback to china@carbonbrief.org
The post China Briefing 2 April 2026: EV profits rise | Ming Yang rejected | Iran war appeared first on Carbon Brief.
China Briefing 2 April 2026: EV profits rise | Ming Yang rejected | Iran war
Climate Change
Colorado River Faces ‘Devastating Consequences’ If Another Dry Winter Lands, Experts Warn
Even a huge snowpack during the coming winter would only give the river basin states less than two years of storage before reservoirs returned to historic lows.
Another warm, arid winter could leave Colorado River reservoirs nearly dry.
Colorado River Faces ‘Devastating Consequences’ If Another Dry Winter Lands, Experts Warn
Climate Change
Q&A: The current state of ‘carbon dioxide removal’ around the world
Carbon dioxide removal (CDR) technologies will need to be deployed at rates even faster than those seen for solar power, if the world is to have a chance of limiting global warming to 1.5C by 2100, says a new report.
Nearly all pathways to meeting the Paris Agreement’s highest ambition of keeping global temperatures to 1.5C above pre-industrial levels in 2100 involve CDR techniques – ranging from tree-planting to sucking CO2 from air with machines.
This is in addition to steep and immediate emissions cuts.
Scientists expect carbon emissions to push warming beyond 1.5C in the decade ahead, meaning that the target can only be achieved “from above” via large-scale CDR that brings down global temperatures.
These temperature trajectories are known as “overshoot” pathways.
The third “state of CDR” report, written by more than 50 scientists, says that countries’ current CDR plans would fall short of what is needed to limit warming to 1.5C by more than 5bn tonnes of CO2 (GtCO2) per year by 2050.
Global CDR would have to increase fourfold – from 2.2GtCO2 in 2026 to 8.75GtCO2 by 2050 – to have a chance of meeting the 1.5C target by 2100, according to the report.
It adds that deploying CDR can be a “gradual process”, making the period 2026-30 “crucial” for “establishing CDR’s role in limiting climate damages” in the future.
Below, Carbon Brief covers the key findings of the third state of CDR report. (This follows from Carbon Brief’s coverage of the first report in 2023 and second report in 2024.)
- What is CDR?
- What are current levels of CDR?
- How much CDR is needed to reach net-zero goals?
- What does the science say about the potential and costs of CDR?
- What have governments pledged on CDR?
- What is the current funding and research landscape for CDR?
- How is policy impacting CDR demand?
What is CDR?
According to the report, the definition of CDR is:
“Human activities capturing CO2 from the atmosphere and storing it durably in geological, terrestrial or ocean reservoirs, or in products. This includes human enhancement of natural removal processes but excludes natural uptake not directly caused by anthropogenic [human-caused] activities.”
In addition to this, the report includes “three key principles” for CDR, which are:
- The captured CO2 must come from the atmosphere, not from “fossil sources”.
- The subsequent storage “must be durable”, so that the CO2 is not soon reintroduced to the atmosphere.
- The removal must result from human intervention that is in addition to Earth’s natural processes.
In this report, a CDR method is considered durable if it is able to lock up carbon for “decades or more”.
The report classifies CDR techniques as either “conventional” or “novel”.
“Convential” CDR techniques are “well established, already deployed at scale and widely reported by countries as part of [land-use] activities”.
The methods included in this group are tree-planting, ecosystem restoration, agroforestry (trees in agriculture), improving soil carbon in croplands and natural lands, and durable wood production.
“Novel” CDR techniques have “lower level of readiness for deployment and, as a consequence, are currently deployed at smaller scales”, says the report.
Some examples of different CDR methods are listed on the graphic below.
The graphic also shows whether carbon is captured through biological or chemical processes, as well as how “ready” the method is and for how long it can store carbon, among other features.
The report says that CDR is “needed alongside deep and rapid emissions reductions” to give Earth a chance of limiting global warming to 1.5C. It continues:
“It should play a smaller role than emissions reductions given uncertainty around the feasible levels of scaling, sustainability limits, storage availability and the risk of reversal, among other constraints.
“In general, CDR should be seen as a limited resource that will need to be used prudently.”
It adds that CDR can “fulfil three major functions”.
In the near term, CDR can help reduce “net emissions”, it says.
In the medium term, CDR can “counterbalance residual emissions” to achieve net-zero CO2 or net-zero greenhouse gas emissions, the report continues.
(“Residual emissions” are those that cannot be eradicated through technologies or societal changes, such as methane emissions from rice production.)
Research suggests that global warming is likely to stop, more or less, once net-zero is achieved globally.
In the long term, CDR can “help achieve net-negative emissions”, a state where CO2 removal exceeds emissions, says the report.
In this state, humans could lower global temperatures. This may allow the world to limit global warming to 1.5C by 2100, even if the temperature target is surpassed earlier on in the century.
Future trajectories where temperatures exceed the 1.5C limit before being brought back down again through CDR techniques are known as “overshoot” pathways.
What are current levels of CDR?
The report says that, at present, “99.9%” of existing CDR is conventional, land-based techniques such as tree-planting and ecosystem restoration.
The world currently removes 2.2GtCO2 per year, equivalent to around 5% of gross global CO2 emissions, it continues.
The largest contributors to removing CO2 from the atmosphere are China, the US, the EU, Brazil and Russia.
The chart below shows the amount of CO2 removed each year over 2014-23 by the largest contributors, through tree-planting (afforestation) and forest restoration (reforestation).

“Novel” CDR, such as biochar and direct air capture, currently removes just 2m tonnes of CO2 annually at present, according to the report.
However, these methods have been growing at a rate of 40% per year – “similar to successful technologies like solar energy, but insufficient for the scale-up required to meet the Paris temperature goal”, says the report.
The graphic below illustrates how the contribution of conventional CDR currently dwarfs novel CDR, but how the latter techniques are quickly growing.

The report says that investment in CDR companies recovered in 2025 following a dip – and its “share of all climate-tech funding” grew to 2.6%.
The report also notes that, at present, most CDR efforts are unevenly distributed across the world.
For example, two-thirds of conventional CDR in voluntary carbon markets is in Latin America, according to the report. (Voluntary carbon markets are where companies can buy credits for carbon-reducing or removing projects, such as tree-planting, to claim that they have “offset” some of their own emissions.)
In addition, most pilot projects that aim to demonstrate novel CDR methods are located in only a few countries, such as Sweden, Denmark and the US, says the report.
The chart below shows the location and timeline of demonstration projects that have been announced, are under construction or in operation globally.

The report continues:
“While first-movers play important roles, if their actions do not diffuse more widely, vulnerability emerges, as evidenced by the impact of US climate policy dismantling.”
(For more, see: How is policy impacting CDR demand?)
How much CDR is needed to reach net-zero goals?
The report examines three scenarios where global temperature rise is limited to “well below” 2C by 2100:
- A current ambition scenario, based on national climate pledges (but omitting the US);
- A highest-possible ambition scenario;
- A delayed ambition scenario, which is consistent with current targets until 2035 and then switches to the highest ambition scenario.
The pledges considered in the report are “nationally determined contributions”, or NDCs, which countries submit periodically to the UN Framework Convention on Climate Change (UNFCCC). NDCs lay out a country’s climate ambition.
Under the current ambition scenario, the report projects a total of 5.9GtCO2 of CDR by 2050 and 12GtCO2 by 2100.
This scenario would result in end-of-century warming of 1.7-2.7C. Importantly, the report says, this scenario does not result in the world reaching net-zero CO2 levels, “meaning that global temperatures would continue to rise, albeit at a much more gradual pace, beyond 2100”.
Under the highest-possible ambition scenario, CDR scales up to 8.8GtCO2 by mid-century and 15.3GtCO2 by the end of the century.
This scenario assumes “full buy-in by all nations”, with economics, scale-up and sustainability providing the main constraints on CDR deployment, the report says.
The highest ambition scenario results in global temperatures peaking at 1.7-1.8C around 2050 and the world achieving net-zero emissions around that time.
Under the delayed ambition scenario, CDR would scale up to 7GtCO2 by 2050 and 23.6GtCO2 by 2100. This scenario shows global temperatures peaking between 1.7C and 2.0C.
This scenario requires larger CDR deployment in the long term than the highest-ambition scenario does, due to the larger cumulative emissions caused by delaying deep emissions reductions.
In both the high ambition and delayed ambition scenarios, the world reaches “deeply net-negative CO2 emissions” by 2100, the report says. This continued deployment of CDR will further draw CO2 from the atmosphere, lowering global temperatures back down to 1.5C.
The chart below shows annual global greenhouse gas emissions through the end of the century under current ambition (red), highest ambition (green) and delayed ambition (blue) scenarios.

While global CDR capacity scales up more slowly in the first and third scenarios, the report notes that, in all three cases, “novel CDR reaches gigatonne-scale deployment by 2050”.
What does the science say about the potential and costs of CDR?
There is a wide range of both carbon-removal potential and associated costs between different methods of CDR, according to the report.
However, it also notes that these numbers “range widely” in the scientific literature.
The discrepancies in estimates of carbon-removal potential are due to a number of factors, the report says, including a lack of available scientific data, inconsistencies in the assumptions made in assessing technical feasibility and a lack of agreement on what, exactly, “potential” means.
These elements also influence the cost of different CDR methods, but additional factors – such as deployment costs in different areas, technological approaches and scope – also play a role in establishing price differences. Because of this, the report says, “cost estimates are often difficult to compare across methods, complicating design and policy decisions”.
The chart below shows the reported range of mitigation potential (left) and reported range of costs (right) for different CDR methods. The top four rows indicate conventional CDR methods, while bottom 11 rows show novel CDR methods. The chart refers to “mitigation potential”, rather than removal potential, because some estimates do not distinguish between removals and avoided emissions.
(Avoided emissions refers to the difference in emissions from carrying out a project, compared to a hypothetical alternative – such as the reduced emissions from halting deforestation.)
The darker colours indicate estimates that are more constrained, meaning that they are either based on stricter assumptions or there is more agreement between different estimates.

The report notes that for most removal methods, the low end of the potential is around 1GtCO2 per year, while the upper limit of costs is more than $200/tCO2.
The least expensive CDR approaches are forestry-based methods, soil-carbon sequestration and biomass burial. For forestry-based methods, the report puts the cost of CDR at $5-$53 per tonne of CO2 removed. Soil-carbon sequestration costs reach as high as $150 per tonne of CO2 removed, but could have negative overall costs “when accounting for crop yield increases potentially resulting” from changed farm-management practices, the report says.
However, it adds that “these CDR methods are typically associated with lower levels of permanence” than other methods.
Other relatively low-cost methods include coastal wetland restoration, biochar, bioenergy with carbon capture and storage (BECCS) and enhanced rock weathering, while ocean alkalinity enhancement is a medium-cost option.
The most expensive methods include direct air carbon capture and storage (DACCS) and direct ocean carbon capture and storage (DOCCS).
The report also notes that a total estimate of CDR removals cannot be obtained by adding up the removal potential of all of the separate methods, since different methods can compete for scarce resources. For example, BECCS, biochar, biomass burial and biomass sinking all rely on the same base input – biomass – and therefore cannot all be maximised at the same time.
What have governments pledged on CDR?
While many countries include some amount of CDR in their national climate plans, there is currently a large gap between the amount of CDR pledged in these plans and the amount that will be needed to limit global temperature rise to 1.5C by the end of the century, says the report.
This quantity is referred to as the “CDR gap” – the difference between what is pledged and what is needed.
The size of the CDR gap is dependent not just on the pledges made by countries, but also the choice of the “benchmark” scenario against which the pledges are measured. Lower – or delayed – emissions reductions lead to larger shortfalls in the long term, meaning “CDR must subsequently be scaled to very high levels”, says the report.
Current NDCs and other country submissions to the UNFCCC total 2.5GtCO2 per year of removals in 2030, 2.7GtCO2 per year in 2035 and 3.6GtCO2 per year in 2050.
This gives a CDR gap of 0.3GtCO2 in 2030, 1.2GtCO2 in 2035 and 5.2GtCO2 in 2050, according to the report. These figures are obtained using assumed “immediate, ambitious action at all levels to reduce emissions” and the most-ambitious estimates of CDR set out in national pledges. Together, this provides a “lower bound” for the CDR gap, says the report.
By comparison, a 10-year delay in implementing ambitious emissions reductions will result in the need to remove at least an additional 150GtCO2 from the atmosphere, compared to the most ambitious scenario. (See: How much CDR is needed to reach net-zero goals?)
The report says that the CDR gap has widened since the second state of CDR report was released in 2024, due to the US leaving the Paris Agreement. It adds that other countries have “not delivered a step change in ambition” in their latest round of climate pledges.
It also cautions that “credibility issues with national pledges may mean that the CDR gap is actually larger than what we assess here”.
The report notes that current CDR pledges by companies are “substantially higher than country pledges”, at 5GtCO2 per year in 2050. However, it adds, “credibility in these announcements is low”.
What is the current funding and research landscape for CDR?
Funding of CDR research and development – as well as investment in CDR companies – has continued to increase in recent years.
In total, there has been around $5.6bn in grant funding distributed to CDR research since 2005, according to the report’s analysis. Roughly one-third of this has come in the past three years.
Funding for CDR research grants grew 13% each year between 2022 and 2025, the report says, and the corresponding number of research publications grew at a similar rate.
Funding was largely targeted at a handful of key areas, notably soil carbon sequestration, biochar and forest-based CDR.
DACCS and BECCS only make up a small number of active grants, but together account for around two-fifths of all funding due to “substantially larger” project sizes.
Despite the growth of research grants and scientific publications, the report concludes that early-stage innovation in CDR is “uneven” and says there is “no strong evidence of a step-change”.
It notes that much of the support for CDR has come from projects with a broader focus, rather than those that focus specifically on CDR.
The authors also point to a decline in “inventive activity”, as measured by patenting of CDR-related innovations. While patenting for emissions-cutting technologies in general has been on an upward trajectory, CDR patenting peaked in 2011.
Meanwhile, the report highlights the “remarkable” sustained investment in CDR companies, against a backdrop of falling investment in climate-related technologies. It notes that CDR now accounts for around 3% of overall “climate-tech funding”.
Yet, again, it says future developments remain “uncertain”. Since the previous 2024 “state of CDR” report, companies have scaled back their ambitions and policy reversals – notably in the US – “underscore that funding uncertainty remains a key barrier”. (See: How is policy impacting CDR demand?)
An upward tick in funding in 2025 was driven primarily by a “surge” in grants from predominantly public institutions, as well as $0.5bn in debt financing for a single BECCS project in Sweden.
Reliance on such funding sources “highlight[s] the volatility of the CDR innovation ecosystem”, according to the report.
The report also has a chapter focusing on the voluntary carbon market, which it describes as “propelling most of the current demand for novel CDR”.
The scale of this market remains fairly small, with contracts for 0.04GtCO2 of removals signed last year.
Moreover, the concentration of sales within a small number of buyers – particularly Microsoft – remains a “critical vulnerability”, the authors note.
How is policy impacting CDR demand?
The report analyses CDR policies in G20 nations – which together account for three-quarters of global emissions – to assess how they are acting to support CDR across their economies.
In total, 140 countries have announced net-zero targets, including virtually all of the world’s major emitters. In doing so, the report points out that the governments of these nations have “implicitly included a role for CDR in their climate plans”.
However, this does not always translate into measures specifically designed to scale up CDR.
Only the EU has adopted a binding, quantified removals target into law – namely, the goal to reach 310m tonnes of CO2 equivalent (MtCO2e) of annual net removals in the land sector by 2030.
Overall, conventional CDR is the main focus of policy, with various governments focusing on tree planting to absorb CO2 from the atmosphere.
Among G20 nations, only the UK and Australia have set specific goals to scale up novel CDR, such as BECCS and DACCS, over the coming decade.
The report highlights some nations, including Canada, Germany, Switzerland and the UK, as taking proactive steps to incentivise CDR.
The authors point to national strategies, financial support for CDR and efforts to integrate it into emissions trading systems (ETS) as examples of effective policy making.
(The report also stresses that the US, which was previously a “leader” on CDR, has now “frozen or dismantled funding and support” for CDR under the Trump administration.)
Most of the successful policies highlighted in the report focus on supporting the supply of CDR, with “less attention so far on creating demand”.
This is significant because CDR “generally lacks a natural market”, meaning there are not automatically buyers willing to spend money on emissions removals. Therefore, the authors say, policy interventions are important to create markets and boost demand.
“Compliance” carbon credits – referring to credits that can be used to meet legally mandated emissions targets – provide a way to support demand, according to the report authors.
Only some ETSs, such as those used in New Zealand and Australia, allow the use of credits based on forest-related removals for compliance. (It is worth noting that such credits are controversial, as removals by forests are not always permanent.)
The report also highlights the need for “foundational policies to create a governance framework for CDR, including rules for quantification of removal, guidelines for community engagement and the minimisation of negative environmental impacts”.
The post Q&A: The current state of ‘carbon dioxide removal’ around the world appeared first on Carbon Brief.
Q&A: The current state of ‘carbon dioxide removal’ around the world
Climate Change
Alligator Alcatraz Emissions Threaten Human Health, Violate Clean Air Act, Lawsuit Claims
The air pollution is associated with the more than 200 diesel-burning generators powering the Everglades migrant detention facility, along with 100 diesel-burning lighting towers.
A new federal lawsuit contends emissions at the Everglades migrant detention site known as Alligator Alcatraz, associated with more than 200 diesel-burning generators and 100 diesel-burning lighting towers, are harmful to human health and the environment and violate the Clean Air Act.
Alligator Alcatraz Emissions Threaten Human Health, Violate Clean Air Act, Lawsuit Claims
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Climate Change10 months ago
Guest post: Why China is still building new coal – and when it might stop
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Greenhouse Gases10 months ago
Guest post: Why China is still building new coal – and when it might stop
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Greenhouse Gases2 years ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
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Climate Change2 years ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
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Climate Change2 years ago
Bill Discounting Climate Change in Florida’s Energy Policy Awaits DeSantis’ Approval
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Renewable Energy7 months agoSending Progressive Philanthropist George Soros to Prison?
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Carbon Footprint2 years agoUS SEC’s Climate Disclosure Rules Spur Renewed Interest in Carbon Credits
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Greenhouse Gases11 months ago
嘉宾来稿:探究火山喷发如何影响气候预测





