Carbon capture, carbon dioxide removal and international carbon markets are all featuring prominently at COP31, as governments and businesses look for ways to finance emissions reductions and build markets around technologies that remain at different stages of commercial maturity.

The conference programme reflects the growing profile of carbon management with a dedicated CDR pavilion and a strong number of events focused on carbon capture with dedicated sessions covering North America and Europe leading the way while a new cohort of countries is also starting to form with Ukraine and South Africa hosting dedicated panels.

In carbon removal, the mood is more cautious than during the market’s initial investment boom with corporate purchasing facing setbacks. The market is entering a more selective phase, with attention shifting from corporate pledges to securing reliable, long-term buyers.

At an October Carbon Unbound Europe conference, market participants highlighted growing interest in government procurement and potential integration into regulated carbon markets.

Microsoft’s reported pause in some procurement activity earlier in the year highlighted the risks of relying on a small number of major buyers.

However, the market is gradually developing a broader customer base, including industrial companies, financial institutions and public-sector initiatives seeking durable removals.

The European Commission’s CRCF was the subject of several panels in the first days of COP31 and we learned that the first credits from the program will be issued by mid-2027.

Carbon capture has had a strained relationship with COP events throughout the years with many in the climate space seeing it as a “license to pollute” for fossil fuel companies, though the official guidance of the IPCC has remained unchanged – CCS is part of the solution to mitigate emissions, especially in hard-to-abate industries.

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