New ‘OSCAR’ Contract Set to Standardise and Remove Friction from Carbon Removal Transactions

New ‘OSCAR’ Contract Set to Standardise and Remove Friction from Carbon Removal Transactions

19 November 2025, Online / CDR30 Event

NEW YORK, Nov. 19, 2025 --The Open Standard Carbon Removal Purchase Agreement (OSCAR), launched today at CDR30, introduces a standard legal contract framework to reduce transaction times, cost and risk, making carbon-removal transactions easier for new-to-market buyers.

Developed by industry veterans through a year-long collaboration, informed by market stakeholders and legal practitioners, and hosted on CDR.fyi, OSCAR serves as a stand-alone template agreement or a starting point for structuring more complex durable carbon-removal agreements. It aims to reduce negotiation time by aligning expectations on risk accountability between buyers and suppliers and ensuring the bankability of contracts for early-stage CDR suppliers.

“For carbon removal to scale, we need more than ambition; we need clarity, consistency, and shared frameworks,” said Peter Mayer, OSCAR legal advisor. “This template gives parties a common language to work from, while remaining flexible enough for different jurisdictions and delivery models.”

“Standardisation, a critical element of well-functioning and scalable markets, often lags market development,” said Glenn Morley, OSCAR contributor. “OSCAR is designed to be a component of fundamental market infrastructure that will positively impact the efficiency of the contracting process and establish common practice.”

The initiative addresses one of the most persistent barriers in the CDR market: the absence of standardised commercial terms. Most transactions today rely on bespoke legal drafting, which increases transaction costs, limits comparability, and slows deal-making. OSCAR will help the market move from pilot-stage experimentation to repeatable, investable transactions by establishing a widely available baseline contract.

“Carbon removals have the potential to function as a new globally recognised asset class, and we welcome efforts to provide the market with the instruments needed to make this possible. Clear contractual benchmarks are essential for unlocking climate finance and integrating removals into global accounting frameworks and scaling the market worldwide,” said Sébastien Dewarrat, Co-Founder and Managing Partner at ClimeFi.

“Clear, standardized terms give buyers and suppliers the confidence to scale their engagement while ensuring transparency on delivery and credit quality. As the market grows, tools like this help turn ambition into action by lowering transaction costs and enabling more predictable investment in high-quality carbon removal. We’re pleased to support this initiative to build trust, advance market maturity, and accelerate progress,” said Maria Eugenia Filmanovic, Co-Founder of Abatable.

Hosted by CDR.fyi, the open-data platform tracking the global CDR market, OSCAR’s launch marks a major step toward building a more efficient and transparent carbon-removal market. OSCAR will be the first of a number of open-source tools designed to support market development and establish communities of practice around specialist domains.

OSCAR defines credit specifications, delivery and MRV obligations, pricing and payment terms, and the allocation of performance, delay, shortfalls, quality, and change-in-law risks. It is published in three parts: CDR-specific commercial terms, boilerplate provisions, and a schedule with definitions. An OSCAR companion guidebook provides clause-by-clause commentary and practical implementation guidance for market participants.

OSCAR has been published openly and will be maintained as a living document, evolving through community feedback and market use. Over the coming months, the working group will engage with buyers, suppliers, legal practitioners, and financial institutions to test and refine the template, laying the groundwork for future versions and derivative frameworks.

The OSCAR team invites engagement from across the carbon-removal ecosystem, especially buyers who have made CDR commitments but have yet to transact, and new suppliers entering the market. Early feedback will help ensure the template reflects real-world contracting needs and supports broader market participation.

The OSCAR and accompanying guidebook will be published on the CDR.fyi website on November 19, 2025.

About OSCAR

The Open Standard Carbon Removal Agreement (OSCAR) is an open-source contract developed by a coalition of CDR industry veterans with significant experience in law, policy, community, and communications. It provides a shared baseline for durable carbon-removal transactions, helping to streamline negotiation and promote market transparency.

About CDR.fyi

CDR.fyi is a Public Benefit Corporation with a mission to accelerate durable carbon removal by bringing transparency and trust to the market. Its community-driven platform provides data, insights, and analytics on carbon removal orders, projects, and financings for suppliers, purchasers, investors, NGOs, policymakers, and media. By making reliable information openly accessible, CDR.fyi builds confidence and drives progress across the carbon removal sector.

Contact

For questions regarding the standardisation initiative, please contact Glenn Morley at glennmorley@gmail.com. For questions regarding the OSCAR contract and guidebook, please contact Peter Mayer at mayer@sdfm.nyc.

For questions regarding CDR.fyi and OSCAR hosting, please email team@cdr.fyi.