In the critical race toward net zero emissions, direct air capture (DAC) has emerged as one of the most promising technological innovations. As traditional offsetting schemes such as reforestation face growing limitations in scalability, permanence, and verification, DAC offers a precision tool to physically remove carbon dioxide from the atmosphere—an approach increasingly aligned with the United Kingdom’s legally binding net zero ambitions.
The UK Government formally committed to achieving net zero greenhouse gas emissions by 2050 through the amendment of the Climate Change Act 2008, a target legally enshrined in June 2019. This pledge was further articulated through the publication of the Net Zero Strategy: Build Back Greener on 19 October 2021, setting a comprehensive roadmap for emissions reductions across all sectors.
Alongside these policies, regulatory frameworks around corporate accountability have tightened. Environmental, Social, and Governance (ESG) reporting—the practice of disclosing a company’s environmental impact, social responsibility, and governance practices—has become a regulatory expectation, particularly for publicly listed and larger private companies. In May 2024, HM Treasury published the Sustainability Disclosure Requirements (SDR): Implementation Update 2024, outlining the next steps in the UK’s sustainability disclosure framework.
Within this context, DAC technology is quickly gaining ground. A notable example is Climeworks’ Mammoth project, which broke ground in June 2022 and officially commenced operations on 8 May 2024. The plant, located in Hellisheiði, Iceland, utilizes advanced modular direct air capture units to extract CO₂ directly from ambient air. Air is pulled through a high-surface-area contactor where chemical sorbents selectively capture carbon molecules. Once saturated, the sorbent is heated using renewable energy sources, such as geothermal or solar, to release high-purity carbon dioxide. This captured CO₂ is then permanently stored underground in geological basalt formations, where it mineralizes naturally into stable rock—effectively removing carbon from the atmosphere for thousands of years.
Unlike traditional carbon offsetting schemes, which often depend on maintaining fragile ecosystems or navigating volatile land-use policies, DAC provides a more measurable, verifiable, and enduring solution. For UK companies facing the twin pressures of regulatory compliance and stakeholder expectation, investment in carbon removal is swiftly transitioning from a voluntary branding exercise to an operational necessity. Under the SDR, firms are required to disclose not just gross emissions but also the steps taken to mitigate and remove carbon as part of their corporate sustainability strategy.
Direct air capture exemplifies the kind of bold, scalable innovation required to meet the United Kingdom’s net zero goals.
Several British firms, particularly within the finance, energy, and consumer goods sectors, have begun to integrate DAC-based carbon removals into their broader net zero strategies. These companies are not merely motivated by reputational concerns; they increasingly view high-quality engineered removals as essential tools for mitigating transition risks associated with tightening regulatory environments and the growing scrutiny of institutional investors. Purchasing durable carbon removal credits from facilities like Mammoth allows firms to demonstrate genuine progress against science-based net zero targets, ensuring that reported emissions reductions meet the stringent criteria set by frameworks such as the Science Based Targets initiative (SBTi).
At the same time, national policy developments are reinforcing the role of DAC within the UK’s long-term decarbonization strategy. The Department for Energy Security and Net Zero (DESNZ) has recognized engineered removals, including direct air capture and storage (DACS), as critical components in achieving net zero, particularly for balancing residual emissions from hard-to-abate sectors such as aviation, heavy industry, and agriculture. The Greenhouse Gas Removals (GGR) Business Models consultation, initiated by the UK Government in August 2022, outlines plans to create commercial incentives for carbon removal projects, including the introduction of Carbon Contracts for Difference (CCfDs) aimed at providing financial certainty for large-scale DAC operators.
However, the path to widespread DAC deployment is not without obstacles. Costs remain high compared to nature-based solutions, typically ranging from £400 to £600 per tonne of CO₂ captured. According to the International Energy Agency, DAC applications are currently hindered by very high costs, ranging from USD 600 to USD 1,000 per tonne of CO₂ captured from the atmosphere. Industry leaders predict significant cost declines through technological innovation, economies of scale, and supportive policy frameworks. Moreover, securing abundant supplies of low-carbon energy will be essential to ensuring that DAC systems deliver net climate benefits, particularly as the technology scales beyond pilot projects toward full commercialization.
Despite these challenges, direct air capture is increasingly seen not merely as an optional climate tool, but as a necessary part of the global carbon management portfolio. The Oxford Principles for Net Zero Aligned Carbon Offsetting, widely endorsed by UK corporates and policymakers, stress the importance of transitioning towards long-lived carbon storage solutions, firmly positioning DAC within the gold standard for offsetting practices.
In this evolving landscape, British businesses that invest early in verifiable, durable carbon removal stand to benefit not only from regulatory compliance but from strengthened brand trust and enhanced resilience against future carbon market fluctuations. Meanwhile, national leadership in DAC innovation could offer the United Kingdom a significant competitive advantage in the burgeoning global carbon management economy.
Ultimately, direct air capture exemplifies the kind of bold, scalable innovation required to meet the United Kingdom’s net zero goals. By coupling technological ambition with regulatory foresight, Britain has the opportunity not only to mitigate its own historical emissions but to lead the world in pioneering a truly sustainable, science-driven future.
