17. The EU Innovation Fund is one of the world’s largest funding programmes for innovative low-carbon technologies, financed by revenues from the EU Emissions Trading System (EU ETS). It supports commercial demonstration of technologies including BECCS and DACCS through mechanisms such as carbon contracts for difference (CCfDs), which bridge the gap between the market carbon price and project costs, providing revenue certainty for CDR developers. It is administered by the European Climate, Infrastructure and Environment Executive Agency (CINEA). 18. The USDA Natural Resources Conservation Service (NRCS) Soil Carbon Amendment practice (Code 336) provides financial assistance to agricultural producers for applying biochar and other soil carbon amendments to cropland and grazing land. The programme supports soil health improvement and carbon sequestration as part of the USDA’s broader conservation programmes, including the Environmental Quality Incentives Program (EQIP) and the Conservation Stewardship Program (CSP). 19. Australia’s Carbon Farming Initiative (CFI), established under the Carbon Credits (Carbon Farming Initiative) Act 2011, allows land managers to generate tradable Australian Carbon Credit Units (ACCUs) by storing carbon or reducing emissions. Biochar projects can generate ACCUs under approved methodologies, sold through the Emissions Reduction Fund (ERF) or on the secondary market. The CFI is now administered within the broader ERF framework by the Clean Energy Regulator. 20. Market-based pricing: in market-based pricing, the price fluctuates based on supply and demand in the market. This model applies when there is a more mature market with competitive suppliers, such as biochar, where prices may adjust depending on buyer interest and available supply rather than strictly reflecting production costs. 21. Prepayment models: whether or not a project relies on prepayments depends on its access to capital and overall financing strategy. For example, ERW projects struggle to attract venture capital due to their logistical focus and lack of intellectual property, making it hard to raise equity. Without strong equity or the ability to secure debt financing, these companies often rely on prepayments from buyers to fund operations. In general, as carbon removal pathways mature and gain more stable financing options, the need for prepayments typically decreases. 22. Performance guarantees are typically not included as a de-risking measure for any of these technologies, with the caveat that this is based on a limited dataset. Carbon Dioxide Removal Technologies: Market Overview and Offtake 32

Carbon Dioxide Removal Technologies 2026