Supercritical reports that many CDR projects, including biochar, remain stalled due to financing gaps. Banks want offtakes before lending, and buyers wait for financing before signing offtakes. This catch-22 limits new project development.

Key insights for project developers:

• Multi-year offtakes are now essential to securing loans.

• Collaborative deals work best when developers, buyers, and banks share risk in a transparent way.

• Public tools such as credit guarantees or advance purchase commitments can de-risk early projects.

• High-quality MRV is becoming part of the financing package. Data clarity shortens due diligence and audit cycles.

• Without better financial structures, supply will remain below demand, even as compliance markets emerge.

Reflection question:

• What elements inside your financing stack have been the most difficult to secure?

Source: Supercritical, Financing the Future of Carbon Removal at COP30, 2024.