New standard 'OSCAR' contract aims to streamline carbon-removal deals

A new effort to standardize carbon-removal contracting debuted 19 November 2025, aiming to cut transaction times and make deals easier for businesses entering the nascent market for carbon-dioxide removal.

The Open Standard Carbon Removal Purchase Agreement, or OSCAR, unveiled at the CDR30 conference, offers a template contract meant to replace the custom legal documents that currently dominate carbon-removal transactions. Industry leaders say those one-off contracts slow dealmaking, drive up legal costs, and hinder financing for early-stage projects.

Developed over the past year by lawyers, carbon-removal operators, and market practitioners, the OSCAR template is hosted on data-platform CDR.fyi and is designed to serve both as a turnkey contract and a starting point for more complex negotiations. The agreement sets expectations on risk allocation, delivery requirements, credit specifications, monitoring obligations, and change-in-law provisions—elements that buyers and suppliers often renegotiate from scratch today.

Supporters say the framework could accelerate the shift from pilot projects to bankable, repeatable transactions. “For carbon removal to scale, we need clarity and shared frameworks,” said Peter Mayer, an OSCAR legal advisor. Others cast the template as essential market infrastructure, akin to the standard contracts that underpin commodity and power markets.

The initiative arrives as corporations and financial institutions increase climate commitments but face hurdles in sourcing high-quality carbon-removal credits. Backers, including executives from ClimeFi and Abatable, point out that standardized terms will build trust, reduce friction, and help transform carbon removals into a recognized asset class attractive to investors.

The OSCAR contract, accompanying guidebook, and future updates will be maintained as open-source documents, with the working group planning outreach to buyers, suppliers, and financial institutions in the months ahead. The team is seeking feedback to refine future versions and broaden adoption across the market.