The $27/ton Question: What Makes a Carbon Removal Credit Worth 3x More?

Something big is happening in the carbon removal market. Companies are paying more than ever for credits that actually remove carbon from the atmosphere, not just avoid it. The price jump tells us where the smart money is going, and it's not where most people think.

In the first half of 2025, the voluntary carbon market hit a record 95 million credit retirements. But here's the kicker: while retirement volume grew by 9%, the total value jumped 32%. That means buyers aren't just retiring more credits. They're paying premium prices for the right ones.

Durable Removal Commands a 3X Premium

The market is splitting into two camps: avoidance credits and removal credits. Avoidance credits prevent emissions from happening. Removal credits pull carbon that's already in the air and lock it away for good.

According to data from CEEZER and Sylvera, removal credit prices increased by 3.2 times compared to last year. High-quality nature-based removal credits with BBB+ ratings now fetch up to $27 per ton. That's not a typo, it's a market signal.

Why the premium? Durability. Companies are zeroing in on Oxford Category 5 credits, which represent removals with centuries-long storage and minimal reversal risk. These aren't your grandmother's carbon offsets.

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Biochar Dominates the Growth Story

If you want to understand where carbon removal is headed, look at biochar. In 2024, biochar accounted for 86% of all carbon dioxide removal purchases by volume. That's not spread across multiple technologies, that's one method owning the space.

The first half of 2025 saw 1.6 million tonnes of biochar carbon removal credits contracted. Microsoft alone signed a deal for 1.24 million tonnes with Exomad Green, the largest biochar agreement in history. These aren't pilot projects anymore.

High-quality biochar sells out fast. By early 2025, buyers had already locked in 62% of the year's supply and 24% of 2026 capacity through offtake agreements. That's the kind of demand that drives prices up.

North America Takes the Lead

North America doubled its share of carbon credit issuances to 43% in Q2 2025. That surge pushed the American Carbon Registry to the top spot among registries with a 33% share, ahead of Gold Standard at 25% and Verra at 21%.

The United States is leading biochar deployment with major projects scaling across multiple states. Minneapolis became the first North American city to own and operate its own biochar facility, capable of removing nearly 3,700 tons of CO2 annually.

In Quebec, the Port-Cartier facility is set to become the largest biochar plant in North America, with production capacity reaching 10,000 tonnes per year initially and tripling by 2026. The consortium behind it aims to produce 350,000 tonnes of biochar by 2035.

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What Makes a Credit Worth 3X More

The difference between a $8 credit and a $27 credit comes down to three things: permanence, verification, and co-benefits.

Permanence

Durable removal technologies like biochar, mineralization, and direct air capture store carbon for centuries or millennia. Trees can burn. Soil carbon can be re-released. But carbon locked in biochar or geological formations stays put.

Companies buying removal credits want guarantees. Oxford Category 5 credits deliver that certainty, which is why they command premium prices.

Verification Standards

Digital monitoring, reporting, and verification platforms are transforming credit quality. Technologies like Carbonfuture's dMRV system track every tonne of CO2 removed from production through third-party verification.

The Integrity Council for the Voluntary Carbon Market approved three biochar methodologies for its Core Carbon Principles label this year. That approval matters because it signals to buyers that these credits meet high-integrity standards.

Co-Benefits

Premium removal credits deliver more than carbon sequestration. Biochar improves soil health, increases crop yields, and reduces fertilizer needs. Mineralization projects can produce valuable materials for construction. These added benefits justify higher prices.

Tech Sector Drives Demand Higher

The tech and IT sector saw a 61% jump in retirement value for carbon removals in 2025, the highest growth rate of any industry. Professional services firms now account for 24% of total retirement value.

Google made history with a 100,000-tonne biochar deal with Varaha, the largest biochar-based transaction ever recorded. TikTok entered the market for the first time with a multi-tech purchase spanning DAC and biochar. These aren't feel-good PR moves. They're strategic investments in meeting net-zero targets.

Microsoft continues to lead corporate carbon removal purchases, with total contracted volumes exceeding 16 million metric tons per year across multiple technologies including biochar, BECCS, and direct air capture.

Supply Can't Keep Up With Demand

Here's the problem: even with supply growing, retirements are outpacing issuances. If this trend holds, 2025 could see negative net issuance for the first time. That supply-demand imbalance is pushing prices higher.

Carbon credit issuances rose to 77 million in Q2 2025, a 39% increase from Q1. But buyers retired 95 million credits in the first half of the year alone. The math doesn't add up, and that's creating pressure.

Technology	Storage Duration	2025 Price Range	Market Status
Biochar	100-1,000 years	$100-$270/ton	Scaling rapidly
Direct air capture	1,000+ years	$250-$600/ton	Early commercial
BECCS	1,000+ years	$180-$430/ton	Growing deployment
Enhanced Rock Weathering	100-1,000 years	$150-$300/ton	Emerging technology
Nature-Based (ARR)	10-100 years	$14-$37/ton	Established market

Developers are racing to build capacity. Applied Carbon raised $21.5 million to deploy mobile biochar production units directly on farms. Standard Biocarbon secured $5 million to scale operations in Maine. These investments signal confidence that demand will stay strong.

Compliance Markets Are Converging

More than 37% of credits issued in Q2 2025 could be eligible under Phase 1 of CORSIA, the global offsetting scheme for international aviation. That's up from 28% in Q2 2024.

This convergence between voluntary and compliance markets is raising quality standards across the board. Companies can no longer get away with low-integrity offsets. The market is demanding verifiable, permanent carbon removal.

The cancellation deadline for CORSIA Phase 1 is January 2028. That timeline is pushing developers to secure host country authorizations under Article 6 of the Paris Agreement now, not later.

Where the Market Goes From Here

The $27 price point for premium removal credits isn't the ceiling, it's the new floor. As compliance markets expand and corporate net-zero commitments come due, demand for high-quality removal credits will only intensify.

Buyers are already securing 2026 and 2027 capacity through offtake agreements. Smart companies are locking in prices and supply now before both become even harder to access.

The voluntary carbon market is shifting from quantity to quality. Companies that wait to invest in durable carbon removal will pay significantly more later. The early movers are setting the standard, and that standard includes verifiable permanence, rigorous monitoring, and real climate impact.

If 2025 continues on its current trajectory, the year won't just break records for carbon credit volumes. It will mark the moment when durable carbon removal became the market standard, not the exception.