Typical carbon removal contracts are structured to balance financial risks between buyers and suppliers by using transparent pricing models and long-term delivery timelines, according to the authors of the newly released report. These agreements often include specific protections like inflation adjustments and grace periods that give companies time to fix technical issues before a contract can be cancelled.
The report notes that “offtake contracts typically use a cost-plus pricing mechanism, which provides a clear breakdown of production costs” and that “contracts typically include force majeure clauses and remedy periods to address unforeseen events and operational challenges.”
In simple terms, these deals are built like long-term insurance policies for the planet. Instead of just setting a flat price today, the buyer and the seller agree on a price based on how much it actually costs to run the technology, with extra room to change that price if inflation rises or if the equipment becomes more efficient. Because many of these carbon-capturing machines are new and complex, the contracts also give the builders a specific window of time to solve mechanical problems or deal with extreme weather without facing immediate legal or financial penalties.
The white paper “Carbon Dioxide Removal Technologies: Market Overview and Offtake” was published in March 2026 by the World Economic Forum in Geneva, Switzerland. Prepared in collaboration with Oliver Wyman and ClimeFi, the report maps the evolving financial structures, buyer profiles, and contractual frameworks scaling the global carbon removal industry.
