New York Climate Week 2025 surprised many with its upbeat and structured tone, signalling progress rather than paralysis in the global climate effort. With around 100,000 participants and nearly 1,000 events, this year’s gathering showcased how the energy transition continues to advance despite political uncertainty and shifting federal priorities.
One of the standout themes was carbon dioxide removal (CDR), now moving from experimental technology to early commercial deployment. At the East Coast CDR Summit, market leaders reported rising demand. ‘90% of spot credits for 2025 are already sold’, noted Michelle You, Co-Founder and CEO of Supercritical. Still, uneven growth remains a challenge, and cost barriers persist. As McKinsey’s Tomas Naucler put it, ‘At $50 per tonne things will explode.’
Speakers agreed that corporate buyers play a pivotal role in scaling the market. Nikki Batchelor, Executive Director of XPRIZE Carbon Removal, emphasised: ‘We’re in a transition phase, there is consolidation. We need buyers to come in. The key is recognising small purchases can be crucial for companies in the sector.’
Policy uncertainty in the United States remains a defining variable for project development. Frontier Carbon Solutions highlighted its dependence on incentives like the 45Q credit. ‘There is no way their business model for carbon sequestration as a service would work without CDR credit financing like the 45Q’, explained Pawan Gupta, VP of Environmental Markets. Frontier also introduced its ‘CO₂ by Rail’ concept with Union Pacific Railroad, offering an alternative to slow-moving pipeline projects.
Meanwhile, the voluntary carbon market (VCM) showed renewed confidence. Over 50 organisations joined forces under the VCM+ Coalition, which targets a combined reduction or removal of 5 billion tonnes of CO₂e by 2035. ‘The VCM+ represents the next chapter of the carbon market, from voluntary to verified, with oversight, science, and integrity at its core’, said Alexia Kelly, Managing Director at the High Tide Foundation. Supporting this, the Carbon Data Open Protocol (CDOP) launched its open-source data model to enhance transparency and investor trust.
Another emerging trend was the rise of urban carbon sinks. The City CDR Initiative outlined innovative approaches—from carbon-storing materials to blue carbon strategies—aiming to turn cities into ‘urban sequoias’, as described by Founder Christiaan Gevers Deynoot. Phoenix Mayor Kate Gallego added: ‘Cities are where climate risks hit hardest, but they’re also where so much innovation starts—from transit to infrastructure.’
The week closed with a sense of progress and persistence. ‘Even though there are challenges in the current environment, action is still being taken’, said former EPA administrator Carol Browner. As attention now shifts toward COP30 in Belém, the question remains not whether capital and innovation can align—but how fast they can move together.