In India, carbon removal draws ambitious projects

Carbon dioxide removal strategies are expanding in India with new initiatives and a potential rise in demand in 2025. This article explores the major factors driving this trend and the technological perspectives.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Several sources indicate that India is steadily consolidating its position in the field of carbon dioxide removal (CDR). This segment differs from avoidance-type carbon credits, which have historically focused on renewable energy. According to observers, the growing popularity of CDR in India largely stems from the market’s increasing maturity and international demand. Local players are relying on this lever to diversify their carbon credit offerings and boost their visibility among international buyers.

India’s market potential

Most credits sold internationally by Indian developers have long been from the “avoidance” segment, notably in renewable energy. However, concerns over credit integrity and falling prices have fueled the expansion of carbon removal methods. Experts say Indian companies, looking to strengthen their decarbonization strategies, are increasingly exploring processes such as biochar production and Enhanced Rock Weathering (ERW). This shift reflects a desire to offer higher-value credits on the market.

Regulatory frameworks are moving in the same direction, with the inclusion of certain removal techniques in national offset mechanisms. Sources mention the authorities’ identification of ten key sectors, among which are sequestration solutions like afforestation and biochar. This integration is sparking interest among major industrial groups seeking to prepare for future compliance requirements. Project developers expect a ripple effect on the demand for removal-based credits and greater international collaboration.

Challenges and assets for developers

India’s cost competitiveness is a significant argument for expanding CDR projects, according to various accounts. Climatic conditions and the availability of agricultural resources facilitate the use of solutions such as biochar, considered less vulnerable to natural hazards than certain reforestation projects. More advanced technologies, like Direct Air Capture (DAC), are also attracting growing interest, even though their deployment is slowed by substantial initial investments. Some observers believe that suitable regulatory incentives could accelerate the rollout of these projects.

Technology-driven initiatives require specific infrastructures and skills, which can be challenging for developers. However, several sources emphasize that rigorous measurement and verification standards lend greater credibility to credits derived from these projects. Foreign investors, especially in North America, are watching India’s potential closely, drawn by competitive operating costs. New financing opportunities may arise thanks to international partnerships and the increasing recognition of CDR in global agreements.

Outlook for 2025

Sources report that in 2025, domestic demand for carbon removal credits may experience a slight increase. This expectation is linked to the progressive establishment of a national carbon market that would encourage local companies to integrate removal solutions into their strategies. Meanwhile, Article 6 of the Paris Agreement, which aims to regulate international credit exchanges, could provide opportunities for technological partnerships. Observers highlight that better understanding of removal methods and growing transparency requirements could stimulate the adoption of these credits.

Some actors note, however, that a lack of national awareness currently limits enthusiasm for these methods. The still-high cost of certain technologies, notably DAC, may hinder their rapid expansion. Several developers nevertheless plan to scale up activities—particularly in biochar and rock weathering—to meet growing expectations of international buyers. This diversification could allow them to broaden their credit portfolios and strengthen India’s position in the global market.

Concerns about sustainability and the real impact of certain projects are prompting companies to carry out more thorough checks before purchasing credits. Strict certification processes already help dispel doubts over CDR’s effectiveness. Analysts assert that the balance between international demand and Indian supply may improve with more standardized practices. Emerging growth prospects encourage all parties to carefully assess their needs and capacity for innovation.

Driven by the energy, heavy industry and power generation sectors, the global carbon capture and storage market could reach $6.6bn by 2034, supported by an annual growth rate of 5.8%.
Article 6 converts carbon credits into a compliance asset, driven by sovereign purchases, domestic markets, and sectoral schemes, with annual demand projected above 700 Mt and supply constrained by timelines, levies, and CA requirements.
The GOCO2 project enters public consultation with six industrial players united around a 375 km network aiming to capture, transport and export 2.2 million tonnes of CO2 per year starting in 2031.
TotalEnergies reduced its stake in the Bifrost CO2 storage project in Denmark, bringing in CarbonVault as an industrial partner and future client of the offshore site located in the North Sea.
The United Kingdom is launching the construction of two industrial carbon capture projects, backed by £9.4bn ($11.47bn) in public funding, with 500 skilled jobs created in the north of the country.
Frontier Infrastructure, in partnership with Gevo and Verity, rolls out an integrated solution combining rail transport, permanent sequestration, and digital CO₂ tracking, targeting over 200 ethanol production sites in North America.
geoLOGIC and Carbon Management Canada launch a free online technical certificate to support industrial sectors involved in carbon capture and storage technologies.
AtmosClear has chosen ExxonMobil to handle the transport and storage of 680,000 tonnes of CO₂ per year from its future biomass energy site at the Port of Baton Rouge, United States.
The Dutch start-up secures €6.8mn to industrialise a DAC electrolyser coupled with hydrogen, targeting sub-$100 per tonne capture and a €1.8mn European grant.
Japan Petroleum Exploration is preparing two offshore exploratory drillings near Hokkaidō to assess the feasibility of CO₂ storage as part of the Tomakomai CCS project.
The Singaporean government has signed a contract to purchase 2.17 million mtCO2e of carbon credits from REDD+, reforestation and grassland restoration projects, with deliveries scheduled between 2026 and 2030.
The Canadian government is funding three companies specialising in CO2 capture and utilisation, as part of a strategy to develop local technologies with high industrial value.
European carbon allowance prices reached a six-month high, driven by industrial compliance buying ahead of the deadline and rising natural gas costs.
Zefiro Methane Corp. completed the delivery of carbon credits to EDF Trading, validating a pre-sale agreement and marking its first revenues from the voluntary carbon market.
Hanwha Power Systems has signed a contract to supply mechanical vapour recompression compressors for a European combined-cycle power plant integrating carbon capture and storage.
A prudent limit of 1,460 GtCO2 for geologic storage reshapes the split between industrial abatement and net removals, with oil-scale injection needs and an onshore/offshore distribution that will define logistics, costs and liabilities.
Frontier Infrastructure Holdings drilled a 5,618-metre well in Wyoming, setting a national record and strengthening the Sweetwater Carbon Storage Hub’s potential for industrial carbon dioxide storage.
The Northern Lights project has injected its first volume of CO2 under the North Sea, marking an industrial milestone for carbon transport and storage in Europe.
Verra and S&P Global Commodity Insights join forces to build a next-generation registry aimed at strengthening carbon market integration and enhancing transaction transparency.
Singapore signs its first regional carbon credit agreement with Thailand, paving the way for new financial flows and stronger cooperation within ASEAN.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.