California Advances $50M Carbon Removal Funding

California is positioning itself as a leader in carbon removal with new legislation that could significantly impact the CDR marketplace. Senate Bill 643, which recently received unanimous committee approval, proposes a $50 million grant program to support carbon dioxide removal projects across the state.

What This Means for Carbon Markets

The proposed Carbon Dioxide Removal Purchase Program would require the California Air Resources Board (CARB) to distribute funding through competitive grants to CDR projects utilizing technologies like direct air capture, biomass carbon removal, enhanced mineralization, and marine carbon dioxide removal. What makes this particularly relevant for marketplace participants is the requirement that funded projects must secure matching or greater funding from private sources—effectively using public dollars to catalyze private investment.

Projects receiving grants would need to permanently retire carbon credits equivalent to their funding amount, directly impacting credit supply in the voluntary market. This public-private partnership model could provide a blueprint for how government funding can accelerate CDR deployment while maintaining market integrity.

Timeline and Requirements

If signed into law this fall, CARB would begin distributing the $50 million between July 2026 and December 2035. Eligible projects must demonstrate durable storage exceeding 100 years, secure third-party verification, and provide community benefits. Individual projects can receive up to $12.5 million in funding.

Why This Matters for Anthrocene

This legislation demonstrates growing state-level commitment to carbon removal even as federal policy remains uncertain. The emphasis on third-party verification, private sector engagement, and high-quality standards aligns directly with Anthrocene’s mission to create a compliant, transparent carbon removal marketplace. As California works toward its ambitious goals of 7 million metric tons of CDR by 2030, we expect this program to drive both supply and demand in the markets we serve.

Read the full analysis from Carbon Direct: https://www.carbon-direct.com/insights/california-advances-50m-public-private-carbon-removal-program