Innovations in Carbon Removal and Storage

Carbon dioxide (CO₂) makes up just 0.04% of the atmosphere but any slight variation in its atmospheric concentration can have profound consequences. Since the Industrial Age, anthropogenic activities have doubled CO₂ levels from 280 ppm to 412 parts per million (ppm) today leading to extreme weather events. Scientific research confirms that human-induced emissions have led to a global temperature increase of at least 1.1°C since 1880.

To tackle the climate crisis, Climate Tech is advancing solutions in carbon capture, removal, and storage. Carbon Dioxide Removal (CDR) extracts CO₂ directly from the atmosphere and stores it in geological formations, oceans, or products. In contrast, Carbon Capture and Storage (CCS) captures CO₂ from industrial emissions at the source—such as cement, steel, and chemical plants—before locking it away permanently underground.

While some commercial projects are already operational, many of these technologies are still in early deployment stages. Strategic investment and policy support will be crucial to scale these solutions and accelerate decarbonization.

Investment in GHG capture, removal, and storage is growing, rising from 0.7% of Climate Tech funding in 2020 to 3.5% in 2024. An estimated $196 billion in investment is needed over the next decade to develop global carbon capture, utilization, and storage (CCUS) infrastructure.

Solutions across Carbon Removal, Capture and Storage

Reaching Net Zero isn’t just about reducing emissions—it requires actively pulling CO₂ from the atmosphere to counter decades of accumulation. The Climate Tech Taxonomy offers a structured framework for mapping solutions that are reversing global warming.

Carbon Capture

Hard-to-abate industries such as cement, steel, iron, and chemicals are among the largest sources of global greenhouse gas (GHG) emissions, collectively accounting for 40% of total emissions. In 2024, global carbon emissions hit an all-time high, with CO₂ emissions reaching a staggering 41.6 gigatonnes. 

Carbon capture technology plays a pivotal role in mitigating the impact of these emissions by capturing carbon dioxide (CO₂) directly from industrial processes before it reaches the atmosphere. Innovations in point-source carbon capture enable large-scale decarbonization by offering a viable pathway to reduce emissions from these critical sectors. 

Over the past decade, advancements have been made in the development of both engineered and nature-based solutions for carbon removal. Technologies such as soil carbon sequestration, ocean alkalinity enhancement, rock weathering, and direct air capture are being deployed alongside nature-based approaches like afforestation and coastal wetland restoration.

Notable startups to watch out in Carbon Capture

Heirloom’s direct air capture (DAC) technology enhances limestone’s natural ability to absorb CO₂ from the air. The spent limestone is continuously recycled through the system, lowering costs and reducing the need for extensive mining. In December 2024, Heirloom raised $150M in Series B funding from Breakthrough Energy Ventures, Lowercarbon Capital, Mitsui & Co., and others.

Terradot scales carbon removal through enhanced rock weathering (ERW) by applying basalt to farmland, where it reacts with rainwater to permanently sequester CO₂. Their platform enables precise measurement, reporting, and verification (MRV) of captured carbon while improving soil health. In December 2024, Terradot secured $54M in Series A funding from Acre Venture Partners, Sheryl Sandberg, Cisco, Microsoft, and others.

CarbonQuest delivers modular, on-site carbon capture solutions for natural gas-based emissions from CHP systems, fuel cells, and boilers. The captured CO₂ is liquefied and sold for use in concrete manufacturing, jet fuel, and chemical processes. In February 2025, CarbonQuest raised $20M in Series A funding from Riverbend Energy Group, Energy Capital Ventures, and Aligned Climate Capital.

Carbon Conversion and Utilisation

Carbon conversion and utilization technologies repurpose captured carbon dioxide (CO₂) from industrial emissions. The captured CO₂ is used in urea production, cement, and carbonation of beverages and more. Lately, new applications such as CO₂-based synthetic fuels, chemicals, and building aggregates are gaining traction.

Carbon Conversion and Utilisation startups that should be on your radar

Twelve’s industrial-scale electrochemical technology uses CO₂ electrolysis to convert CO₂ and water using renewable electricity into jet fuel, apparel, sportswear, and other products. This zero-emission process eliminates the need for fossil fuel-based feedstocks. Twelve raised $83M in Series C funding in February 2025 from Mitsui & Co., Development Bank of Japan, The Climate Pledge, and others.

Dutch startup Paebbl transforms CO₂ into sustainable building materials through carbon mineralization, permanently storing up to 300 kg of CO₂ per ton of material. Paebbl raised $25M in Series A funding in October 2024 from Amazon, Pale Blue Dot, Capnamic, 2050, and Holcim MAQER Ventures.

GHG Removal Real-Time Monitoring

Monitoring, reporting, and verification (MRV) are critical to the success of GHG removal efforts since they ensure accurate accounting of captured emissions. Real-time GHG monitoring plays a crucial role in tracking CO₂ and other emissions removed from the atmosphere through solutions like carbon capture and storage and direct air capture (DAC). Key technologies in this space include data management and analytics, CO₂ leak detection, and carbon sequestration monitoring.

Notable startup to watch out in GHG Removal Real-Time Monitoring

French company Geolinks offers sustainable geophysical monitoring solutions using ambient-noise based technology for mining, CO2 geological storage, geothermal energy, and other industries. Geolinks raised $ 1.6M in April 2024 from EIT InnoEnergy.

Carbon Removal and Storage Gains Global Momentum

Climate Tech is advancing the efficiency and scalability of GHG capture, removal, and storage. These solutions also drive carbon utilization, create economic opportunities through carbon markets, and support net-zero goals by balancing unavoidable emissions.

To accelerate adoption, investors need a clear view of where capital is flowing and which technologies are gaining traction. With comprehensive market intelligence, businesses and investors can identify high-impact opportunities to navigate this rapidly evolving sector, and strategically position themselves in the net-zero transition.

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