CDR Challenge

About the Challenge 

In March 2024, the U.S. Department of Energy’s (DOE’s) Office of Fossil Energy and Carbon Management (FECM) announced notice of intent to launch a Voluntary Carbon Dioxide Removal Purchasing Challenge (“Challenge”), calling on the private sector to amplify DOE’s own purchases of high-quality carbon dioxide removal credits. While the official rules and launch date of the Challenge have not yet been publicly announced, DOE plans for the Challenge to serve as a voluntary leadership initiative for organizations taking climate action by buying small and growing amounts of high-quality carbon dioxide removal credits. Thank you to the many members of the public who submitted comments on the Challenge. DOE is currently preparing the Challenge for launch and is seeking necessary approvals required by Federal law. Reference the below for the latest public filings: 

• Draft participation forms have been published on the Office of Management and Budget’s website under pending Information Collection Request “Carbon Dioxide Removal (CDR) Purchase Disclosures.” Check “All” at the top of the page to see more details. 

Description 

Buyers can participate in the Challenge by completing an online form to submit carbon dioxide removal credit pledges and purchases from the high-quality CDR projects. Participants will be featured on the Challenge platform and compete for Leadership Spotlights, which will be announced in 2025. The entry form, subject to final approval, will collect the following information:

 * Impacts eligibility to participate in the Challenge or receive a Leadership Spotlight. See Rules for more details.

• To be recognized, pledges must publicly commit to purchase high-quality carbon dioxide removal credits within one year. 
  • To submit a pledge, organizations must submit information to DOE, including, but not limited to: information on the participating entity, committed credit quantity and/or dollar value, and proof of publicly disclosed pledge. 
  • This information will be publicly listed on the Challenge website. 
• To be recognized, purchases must be binding commitments to purchase high-quality carbon dioxide removal credits.  
  • To submit a purchase, organizations will submit information to DOE, including, but not limited to: information on the participating entity, seller information, credit project information, registry information, credit quantity, credit price, intended claims, and proof of purchase. 
  • Most of this information will be publicly listed on the Challenge website. Price and other confidential information will be protected from public disclosure to the fullest extent of the law. 
  • Purchasers may opt to anonymize their association with individual purchases in public listings, although this will disqualify such purchases from consideration for any Leadership Spotlights. 
• High-quality CDR is defined as projects that: 
  • Implement one of six Carbon Negative Shot™ priority CDR pathways: direct air capture with storage (DACS), soil carbon sequestration, biomass carbon removal and storage (BiCRS), enhanced mineralization, marine CDR (mCDR), or afforestation/reforestation; 
  • Secure isolation of CO₂ from the atmosphere for at least 100 years through technical, financial, and/or substitutional mechanisms; 
  • Generate net negative emissions when accounting for all activity to conduct the removal; 
  • Are additional and would not have occurred in the absence of the crediting mechanism; 
  • Apply a robust community benefits plan that proactively minimizes risks and maximizes benefits to people, communities, and the environment; and 
  • Are verifiable and uniquely quantifiable using rigorous scientific measurement, monitoring, reporting, and verification (MMRV) that maximizes transparency, including through independent third-party validation. 
• Twelve Leadership Spotlights will be announced at the end of Round 1 to recognize select purchasing participants based on quantifiable impact.  
  • For each solution pathway (DACS, soil carbon sequestration, BiCRS, enhanced mineralization, mCDR, afforestation/reforestation), a Spotlight will be given to the largest purchase by dollar value by a small business (≤500 employees) and a medium-to-large business (>500 employees) 
  • A participant cannot win multiple awards. If a participant wins multiple categories, award category will be determined based on the larger purchase. If purchase sizes are equal, award category will be determined based on the purchase submitted first. 
• No minimum credit quantity or dollar value is required for pledge or purchase submissions. 
• Round 1 will include pledges and purchases made on or after March 14, 2024 through March 14, 2025. Credits do not necessarily need to be delivered or retired during the Challenge period. 
• US organizations of any type and sector are eligible to participate. Suppliers and other CDR market entities that do not purchase credits can get involved by promoting the Challenge and featuring in buyers’ submissions. 
• Prospective participants must submit supporting documentation demonstrating that their purchase meets all Challenge criteria. DOE retains final discretion on the inclusion of pledges, purchases, and participants on the Challenge website.