H.R. 9975 Carbon Dioxide Removal Leadership Act of 2026: DOE to Buy Up to 10M Metric Tons of CDR Annually

Representative Paul Tonko introduced the Carbon Dioxide Removal Leadership Act of 2026 (H.R. 9975), a bill that would direct the Department of Energy to purchase or contract for large-scale carbon dioxide removal from air and seawater. The bill sets escalating annual targets: 50,000 metric tons in fiscal years 2026-2027, rising to 10 million metric tons per year by 2036 and beyond. Contracts can last up to 15 years, with per-ton cost limits starting at $750 and dropping to $150 by 2037. The bill includes strict verification requirements, a ban on using captured CO2 for enhanced oil recovery, and a 20% set-aside for small removal projects. It also requires the DOE to study how to scale the program to a gigaton-per-year level by 2050. If passed, this would create a stable, long-term offtake market for direct air capture and ocean-based carbon removal technologies, potentially unlocking private investment in the sector. For carbon market participants, the bill's emphasis on additionality, durability, and independent third-party verification aligns with high-integrity carbon credit standards. The declining price caps signal an expectation that CDR costs will fall significantly over the next decade, which could influence voluntary market pricing and corporate procurement strategies.