Canada’s carbon removal sector has received a coordinated boost with the launch of the Advance Carbon Removal Coalition (ACR), a national initiative aimed at scaling investment and demand for carbon dioxide removal (CDR) solutions.
Led by Carbon Removal Canada, the coalition is targeting $100 million in new support by 2030 through a mix of credit purchases, direct investment, and project finance.
Founding members include the Government of Canada, Bank of Montreal (BMO), ClimeFi, NorthX, Royal Bank of Canada (RBC), Shopify, and Vancity. Collectively, these organizations have already contributed more than $75 million to Canada’s growing CDR ecosystem.
“Canada has the talent, geology and clean power to lead in carbon removal,” announced Ed Whittingham, founding director of the Advance Carbon Removal Coalition. “By aligning serious buyers and investors, we’re helping advance Canada’s carbon removal sector from fragmented to financeable. That’s how you go from ambition to projects on the ground.”
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The ACR is structured as a demand-side coalition designed to strengthen confidence in Canada’s carbon removal market. By creating a shared platform for participation, transparency, and engagement, the initiative aims to stimulate demand for high-integrity carbon removal credits while providing clearer market signals for developers and investors.
By aligning public and private sector participants around common objectives, the coalition seeks to reduce fragmentation that has historically slowed market development. ACR will also publicly recognize member participation and track aggregate progress toward its 2030 funding goal.
Carbon removal is widely expected to become a trillion-dollar global market in the coming decades, as governments and industries work to address emissions from hard-to-abate sectors such as cement, aviation, and heavy industry. Canada is seen as well-positioned to compete globally, with advantages in geology, engineering expertise, biomass availability, and access to clean electricity.
Despite growing momentum, Canada’s CDR sector continues to face challenges in scaling projects beyond early-stage development. Industry observers note that consistent demand signals — rather than one-off transactions — are essential to unlocking larger-scale deployment.
The coalition aims to address this gap by improving market visibility and coordination. By clarifying who is actively purchasing and investing in carbon removal, ACR intends to make it easier for project developers and decision-makers to identify credible demand and secure financing.
On March 12, the Government of Canada launched a Request for Standing Offer to purchase carbon removal credits. The offer seeks to acquire and retire permanent carbon removal credits to offset residual GHG emissions from the government’s National Safety and Security Fleet. The procurement will award up to five standing offers across five technology streams, valid until March 31, 2029.
“Canada is committed to achieving a net zero economy, and carbon dioxide removal will be essential to reaching that goal,” announced Julie Dabrusin, federal Minister of the Environment, Climate Change and Nature. “With strong policies and innovative technologies, Canada is uniquely positioned to build a globally competitive carbon removal industry. The Advance Carbon Removal Coalition will help us get there by mobilizing investment and supporting innovative Canadian projects that drive climate progress, strengthen our economy, and create demand for high integrity carbon credits.”
Related Professional Development Event
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Choose from eight courses at CANECT 2026 — Canada’s leading training and networking event for environmental compliance and due diligence professionals. Explore the course topics and see who is speaking at: www.canect.net
