Google’s Procurement Push in Carbon Removal and Capture

As businesses face growing pressure to reduce carbon footprints, procurement strategies are shifting to include long-term carbon removal commitments. Google has emerged as a major corporate buyer in this space, significantly increasing its investment in carbon dioxide removal (CDR).

The tech giant’s 2024 spend on CDR—three times its 2023 investment—demonstrates a firm belief that large-scale removals will be crucial for meeting net zero goals.

This procurement-driven approach reflects broader trends in corporate sustainability. More companies are moving beyond carbon offsets towards high-durability removals that permanently eliminate CO2 from the atmosphere. Google’s investment highlights how procurement teams can drive climate impact by strategically sourcing CDR solutions.

Where Google’s carbon procurement dollars are going

Google’s expanded commitment translates into direct agreements with key CDR providers. One of its most notable contracts is a 200,000-tonne enhanced rock weathering (ERW) deal with Terradot, marking the largest agreement of its kind. ERW accelerates the natural weathering process of minerals, locking away CO2 in rock formations.

The company is also investing in direct air capture (DAC), a technology that extracts CO2 directly from the atmosphere. Google has signed a deal with Holocene, purchasing DAC credits at US$100 per tonne and committing US$10m upfront to support commercial-scale deployment.

Biochar is another key area of focus. Google has partnered with Charm and Varaha, companies that convert agricultural waste into stable carbon forms that can be stored in soil for long-term sequestration. This approach not only removes carbon but also benefits soil health and agricultural productivity.

Beyond technology-based solutions, Google is backing nature-based projects. The company co-founded Symbiosis, an initiative ensuring high standards in forestry projects and has funded CarbonRun, which removes CO2 by improving waterway health. Google’s procurement strategy also includes investments in CO280, a project integrating carbon capture into existing industrial processes.

By diversifying its portfolio, Google is not only securing a range of CDR options but also helping scale multiple removal technologies simultaneously.

The role of procurement in scaling CDR

Google’s investment surge aligns with its 2030 net zero target, which requires addressing hard-to-abate emissions in its supply chain and energy use. Traditional carbon offsets, such as renewable energy credits, no longer provide sufficient impact, making durable carbon removals a more attractive option.

However, the company's strategy extends beyond compliance and sustainability reporting. “Google’s net zero 2030 target demands scalable, measurable solutions for hard-to-abate emissions,” says Graham Bain, Principal Analyst at Enverus.

“But it isn’t just about offsets, it’s about market-building.”

Procurement plays a critical role in de-risking the CDR sector. By committing large-scale purchases, Google helps signal demand to innovators and early-stage developers, making it easier for them to attract investment and scale up operations.

Policy incentives also support this shift. With measures like 45Q tax credits in the US and emerging carbon removal procurement programmes in Europe, corporate buyers stand to benefit from government-backed financial mechanisms.

Yet challenges remain. The CDR market is currently dominated by a few large buyers. In 2024, Microsoft, Google, Stripe and Frontier accounted for 80% of all purchases. This concentration raises concerns about market stability and the need for a broader corporate customer base.

Additionally, scaling these technologies from pilot stages to industrial capacity is proving difficult. In 2024, only 4.4% of booked CDR volumes were delivered, highlighting supply chain constraints and infrastructure challenges.

Criticism of CDR also persists. Climatologist, Friederike Otto argues: “My feeling about CDR is that we should pretend it is not an option. We do not have a technology at the moment that works at scale.”

She warns that reliance on removals could delay direct emissions cuts.

Despite these hurdles, Google’s procurement strategy provides a blueprint for businesses looking to enter the carbon removal market. By securing long-term agreements, engaging with policy incentives and balancing portfolios between engineered and nature-based removals, companies can help scale this emerging sector.

How CDR procurement is evolving

Google is not alone in this effort. Microsoft has been an even larger buyer, accounting for 70% of all-time CDR purchases. Meanwhile, energy firms like Chevron and Svante have invested US$100m in carbon capture projects in Canada and Mitsubishi is supporting Heirloom’s limestone-based DAC technology. Even governments are entering the market, with Canada pledging US$10m for CDR procurement.

As the industry matures, procurement teams will play a crucial role in shaping how carbon removal scales. Businesses looking to enter this space can learn from Google’s approach—prioritising technology diversity, securing early contracts and aligning purchases with policy incentives.

The ultimate goal is to move from megaton to gigaton-scale removals. “As CDR scales from megatons to gigatons, the question isn’t if to invest, but how,” says Bain. With demand increasing and technologies advancing, procurement strategies will determine how quickly carbon removal reaches the levels needed for global decarbonisation.

Randy Spock, Google’s Carbon Credits and Removals Lead, acknowledges that the road ahead is long: “While we’re encouraged by this initial progress, we’re keenly aware that this is just the beginning. We’re excited to keep expanding our support for carbon removal in 2025 - and we’ll remain open to novel ways of achieving high-scale, high-certainty impact on the atmosphere.”

For procurement leaders, the message is clear: CDR is no longer a niche concept. It is an evolving market where early investments can shape the future of corporate decarbonisation. As companies refine their sustainability strategies, carbon removal procurement will likely become a core part of long-term climate planning.

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