Carbon Dioxide Removal Series: Soil Carbon Removal | Market Compass | 2025

asoni93
Nov 21
2 min read

Updated: 5 days ago

Current Landscape

Soil carbon removal (SCR) has gained increasing attention as a viable method for reducing atmospheric CO₂, offering ancillary benefits such as improved soil health and enhanced agricultural productivity.

The global landscape reveals that most SCR credits are issued in Africa, China, and the U.S., with significant expansion occurring in regions like Asia, South America, and Europe. The sector has also seen the filing and granting of 14 patents, underscoring the growing role of technology and innovation in advancing soil carbon removal.

Investments in Soil Carbon

Investments in Soil Carbon Removal (SCR) technologies has reached a cumulative total of USD 430 million till date, with notable funding milestones in 2023, such as Indigo Ag raising $250 million and Loam Bio securing $73 million.

Additionally, the market has seen an increase in offtake deals, with soil carbon removal credits seeing an 80-fold increase by Jun of 2025 as compared to 2024. Total commitments have reached 3.2 million tonnes, with the technology sector accounting for approximately 82% of the volume.

Issuance & Retirement Trends

Cumulative issuances and retirements stood at 10.8 million tonnes and 3.1 million tonnes respectively in the voluntary carbon market (VCM). Retirements have surged from under 60,000 credits annually in 2019 and 2020 to over 830,000 in 2024, with the first five months of 2025 already surpassing 700,000 credits. This growing market interest underscores the importance of soil carbon credits in offsetting emissions, especially in sectors where reductions are harder to achieve.

cCarbon Viewpoint

The recent capital infusion into Indigo Ag and Loam Bio highlight some SCR players breaking into scale, potentially paving the path for others. The sector’s co-benefits and additional revenue streams make it attractive to CDR buyers and investors. SCR credits have been priced between USD 20 and 50/ tonne CO2e: like current Af/reforestation projects, albeit with different co-benefits.

Integrity on measurement and verification is going to be key in the near-term as the sector garners attention.

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Table of Contents

State of the Sector ………………………………………….. 2

Defining Soil-based Removals …………………………….. 2

Current State ………………………………………………… 2

Key Developers ………………………………………………. 3

Patent Landscape ……………………………………………. 4

Investment Landscape ………………………………………. 5

Equity Investments ………………………………………….. 5

Offtake Deals …………………………………………………. 5

Issuance & Retirement Trends ………………………….. 6