Corporate carbon removal targets in practice
Set clear milestones for a credible net zero pathway
Thousands of companies have committed to net zero targets including durable carbon dioxide removal (CDR), but only a handful have started to purchase CDR, or publish plans for when and how they will. This poses a risk that the nascent CDR sector will not scale fast enough to meet future needs. This paper provides practical recommendations for companies on setting long-term, and interim milestone targets for carbon removal. These targets are intended to complement emission reductions, ensure credible net zero pathways and support the rapid scale-up the sector requires to help meet global climate goals.
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Key recommendations for companies with a net zero target
1. Estimate long-term CDR needs for reaching net zero targets. This may differ a lot between sectors.
2. Set near-term, annual delivery or budget-based targets aligned with long-term needs. Consider setting monetary targets in the short-term to avoid too early cost competition in the nascent CDR sector. Follow the “like-for-like” principle and match the permanence of CDR to the emissions, e.g. only durable CDR for fossil emissions.
3. Budget for CDR and wider climate support. Consider using an internal carbon fee to finance both CDR and other Beyond Value Chain Mitigation (BVCM) actions, adjusting it over time as targets evolve.
4. Contract CDR. Support a diverse range of CDR methods, rather than just the cheapest, to drive innovation, spread risk, and grow the market. Consider a “catalytic buying” approach to prioritize neglected opportunities.
5. Communicate transparently by publicly disclosing plans, progress, and challenges.
By following these steps, companies can strengthen the credibility of their net zero commitments, build internal expertise, secure future CDR supply, and help drive the broader ecosystem toward the scale and innovation required to meet global climate goals.
Why companies need CDR milestone targets
Many companies rely on carbon removal for their net zero strategies but lack a plan for when and how to start. This absence of early commitments risks credibility, market stability, and future supply constraints. Companies that act now position themselves as climate leaders while mitigating long-term risks.
How to set and finance CDR targets
To successfully integrate CDR into a net zero strategy, businesses need a clear plan for procurement and financing. A phased approach allows companies to support early-stage innovation while ensuring removals are credible and aligned with long-term goals. Steps include:
Budgeting strategically
Diversifying procurement
Ensuring transparency
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