Carbon Direct launches CDR 2.0 framework to transform carbon removal industry from commitment to delivery

NEW YORK, NY — February 19, 2026 — Today, Carbon Direct launched CDR 2.0, a comprehensive framework designed to accelerate the deployment of high-durability carbon dioxide removal (CDR) projects from corporate commitments to operational delivery. The initiative introduces five interconnected pillars that address structural barriers preventing the CDR market from scaling at the speed required to meet corporate climate goals and global climate targets.

Despite years of market development and billions in forward commitments, the CDR industry has struggled to convert ambition and commitments into funded, operating projects. Capital sits on the sidelines while projects stall before reaching final investment decisions (FID). Forward commitments have too often yielded non-delivery, with many buyers hesitating amid credibility concerns affecting the broader voluntary carbon market. 

CDR 2.0 addresses these challenges by establishing the commercial discipline needed to close deals, build assets, and deliver credits. The framework applies proven project finance principles from global energy markets to engineered and hybrid CDR pathways, including direct air capture (DAC), bioenergy with carbon capture and storage (BECCS), biomass carbon removal and storage (BiCRS), enhanced rock weathering (ERW), and abiotic marine CDR.

"While the CDR market has developed numerous goals and principles, it largely lacks the practical structure to translate ambitions into operational projects," said Dr. Julio Friedmann, Chief Scientist at Carbon Direct. "CDR 2.0 represents a fundamental shift in corporate strategy: moving from the purchase of promises to the procurement of performance. The tools and capital exist. What has been missing is the structure to bring them together."

Carbon Direct has established the industry's quality standards through five editions of the Criteria for High-Quality Carbon Dioxide Removal, developed alongside Microsoft, which set the bar for additionality, durability, leakage, measurement, social harms and benefits, and environmental integrity.

The CDR 2.0 framework establishes five pillars for successful project deployment:

1. Technical readiness: Commercial-scale projects must be built on technologies at high technology readiness levels (TRL 8 or above) to qualify for bankable capital stacks, with pilot-stage technologies appropriately classified in pilot portfolios rather than infrastructure deals.

2. Project assurance: CDR facilities require the same project management discipline as energy infrastructure, with rigorous front-end engineering design, stage-gate reviews, and independent oversight—particularly essential for first-of-a-kind deployments.

3. Standardization: The industry must migrate from principles to specifications, with measurement, monitoring, reporting, and validation (MMRV) methodologies converging into clear, investment-grade technical standards that buyers, investors, and regulators can uniformly apply.

4. Bankable contracting: Binding offtakes, milestone-based capital deployment, and risk-matched financing structures form the foundation of functional CDR project finance, moving beyond letters of intent to take-or-pay agreements that underwrite project finance.

5. Transactional ease: Standardized base contracts, syndication infrastructure, and universal quality benchmarks reduce deal complexity and transaction costs, enabling broader corporate participation with predictable terms and structures.

Earlier this month, Carbon Direct’s 2026 State of the Voluntary Carbon Market Report showed that the market stands at a critical inflection point: while the infrastructure, science, and solutions are ready to scale, buyer hesitation threatens to strand essential carbon removal projects just as policy catalysts and new standards are poised to unlock greater demand.

The CDR 2.0 framework addresses a critical market gap where early-stage projects with high delivery risk are supported by a limited pool of large buyers absorbing most projected credit volume. Unlike mature commodity markets with ready substitutes, CDR project failures leave no replacement credits available. CDR 2.0's rigorous approach enables buyers to transform intention into industrial performance while managing rather than accepting higher risk.

The applied structure emphasizes that carbon credits represent environmental services differentiated by durability, geography, and community impact rather than fungible commodities. Success requires active participation from buyers, investors, and third-party experts in portfolio selection, offtake agreements, and project assurance—moving beyond passive observation to ensure projects reach FID and enter operation. The next few years will determine whether the CDR industry will grow to its necessary size and scope.

Download the full white paper titled "CDR 2.0: Five pillars of successful project deployment and delivery."

About Carbon Direct

Carbon Direct is a trusted energy and climate solutions company that combines world-class scientific expertise, technical rigor, and market insights to help clients achieve their business goals. Our 70+ scientists work closely with our finance, policy, and market experts to design, diligence, and deliver decarbonization solutions across industries. From JPMorganChase to Microsoft, Carbon Direct helps leading companies with carbon dioxide removal, carbon measurement, firm clean power opportunities, and low-carbon energy solutions. To learn more, visit www.carbon-direct.com.

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