ASIA-PACIFIC DURABLE CARBON DIOXIDE REMOVAL (CDR) DEMAND MARKET FORECAST 2030-2040

The Asia-Pacific durable carbon dioxide removal (CDR) demand market growth evaluation includes an in-depth assessment of China, Japan, South Korea, Malaysia, Indonesia, Vietnam, India, Australia & New Zealand, and Rest of Asia-Pacific. One of the key drivers of the market expansion in the Asia-Pacific is the increased government initiatives aimed at reducing CO2 emissions. Many Asia-Pacific countries are adopting policies to promote negative emissions technologies (NETs) and advance the development of durable CDR methods. These include investments in direct air carbon capture and storage (DACCS) and biomass with carbon removal and storage (BiCRS), both critical for capturing and sequestering CO2 emissions from the atmosphere. 

In China, the durable carbon dioxide removal (CDR) market is experiencing robust growth due to the country’s aggressive carbon neutrality targets and support for innovative climate technologies. The government has initiated various policies and incentives to encourage CDR deployment, integrating it into national carbon reduction strategies. With China’s heavy industrial base, there is a growing focus on scaling up CDR technologies such as direct air capture (DAC) and biochar production to offset emissions from hard-to-abate sectors. Additionally, partnerships with global and local companies are fostering technological advancements and expanding CDR infrastructure, making it a key component of China’s long-term sustainability plans.

However, the market’s growth is limited by insufficient mechanisms for monitoring, reporting, and verification (MRV). The absence of reliable MRV systems hinders the effective evaluation of CDR solutions, creating challenges for the widespread adoption of durable CDR credits and participation in both voluntary and non-voluntary carbon markets.

On the other hand, the durable CDR market in Japan is gaining momentum as the country seeks to achieve its net-zero emissions goal by 2050. Japan’s approach focuses on integrating advanced CDR technologies, such as carbon mineralization and direct air capture, into its energy and industrial sectors. The government is actively funding research and pilot projects, collaborating with international companies and institutions to accelerate development. Additionally, Japan is leveraging its technological expertise to improve the efficiency of CDR methods and create scalable solutions, ensuring that CDR becomes a vital part of its broader strategy to reduce carbon emissions and transition to a sustainable, low-carbon economy.

The Asia-Pacific durable carbon dioxide removal (CDR) demand market is segmented into sectors, which are further sub-categorized into consumer, industrial, mobility, manufacturing/technology and hardware, services, energy, digital, and healthcare.

In the mobility sector, durable carbon dioxide removal (CDR) demand arises from the need to address emissions linked to transportation activities such as aviation, shipping, and road transport. Companies in these industries are incorporating CDR solutions alongside electrification and fuel efficiency improvements to meet net-zero emissions targets. Airlines are investing in direct air capture (DAC) and biochar projects to offset carbon emissions from flights while shipping companies partner with CDR providers to neutralize emissions from marine operations.

Eminent companies operating in the Asia-Pacific durable carbon dioxide removal (CDR) demand market include Climeworks, Novocarbo GmbH, CarbiCrete, Heimdal, etc. 

Heimdal is a company specializing in carbon dioxide removal technologies focused on mineralization. The company captures CO2 directly from the atmosphere using renewable energy sources and mineralizes it into stable forms for storage and industrial applications. Heimdal’s solutions include scalable DAC units and carbon-negative production processes that support sustainable manufacturing. Their systems are deployed in various industries, including construction and energy, where they integrate CDR technologies for building materials and carbon-neutral products. Heimdal operates globally, with facilities and partnerships across the Asia-Pacific region, Europe, and North America. The company is headquartered in Oslo, Norway, with additional research and operational hubs in the Asia-Pacific region.