Carbon Removal Costs Are Skyrocketing: Why Companies Need to Act Now (2025)

Here’s a stark reality check: The cost of removing carbon from the atmosphere could skyrocket threefold by 2030 and a staggering ninefold by 2035, according to recent projections. This isn’t just a number—it’s a ticking clock for companies aiming to achieve net-zero emissions. But here’s where it gets controversial: while some argue that these costs are inevitable, others believe that early action could not only lock in lower prices but also secure a more stable path to sustainability. So, what’s the smart move? Let’s dive in.

Key Insights to Keep in Mind

Cost Surge on the Horizon: Carbon removal prices are expected to climb dramatically, driven by rising corporate demand and tighter regulations.
Act Now, Save Later: Companies that move quickly can secure lower rates, diversify their carbon removal strategies, and reduce the risks associated with net-zero plans.
Nature vs. Technology: Nature-based solutions like reforestation offer immediate value, while engineered carbon removal technologies are scaling up for the long term.

Why the Urgency?

Carbon removal isn’t just a buzzword—it’s a critical component of global efforts to combat climate change. But as more companies commit to net-zero targets, the demand for carbon removal solutions is outpacing supply. This imbalance is driving prices upward, and the longer businesses wait, the more they’ll pay. For instance, offsetting just 10% of emissions today costs a small company around $400,000, a mid-size firm $1.5 million, and a large corporation $10 million. Fast forward to 2035, and those same costs could balloon to $3.6 million, $13.5 million, and $90 million, respectively. And this is the part most people miss: even if a company’s emission volumes stay the same, delaying action will multiply their financial exposure.

Visualizing the Impact

In partnership with Terraformation, we’ve analyzed data from BloombergNEF and VanderStyn to illustrate how offset budgets could explode under a plausible price trajectory. The numbers are eye-opening and underscore the importance of early action. For example, locking in supply at today’s rates could save companies up to 10 times the cost compared to waiting until 2035, when high-integrity carbon removal options become scarce.

How Can Companies Prepare?

Embrace Nature-Based Solutions: Reforestation and other nature-based projects are currently the most accessible and cost-effective options. Early procurement can significantly reduce long-term expenses.
Secure Long-Term Agreements: Multi-year or forward contracts can provide price stability and ensure access to carbon removal solutions as demand grows.
Budget Now, Govern Later: Allocate funds today and establish governance frameworks that align with net-zero milestones. This proactive approach ensures compliance with evolving standards and market expectations.
Stay Informed: Monitor changes in carbon credit standards to ensure that purchased credits remain valid across voluntary and compliance markets.

A Controversial Question

Here’s a thought: Is relying solely on nature-based solutions enough, or should companies invest heavily in emerging engineered carbon removal technologies? While nature-based projects offer immediate benefits, engineered solutions could provide the scalability needed to meet long-term goals. What’s your take? Let us know in the comments.

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The clock is ticking. Will your company be a leader in securing a sustainable future, or will it be left paying the price for delay? The choice is yours.