Carbon Gap Finds The US Is Spending Far More On Carbon Removal Than The EU

Carbon Gap Finds The US Is Spending Far More On Carbon Removal Research Than The EU - Carbon Gap

Carbon Gap – a philanthropy-funded non-profit organization focusing on tracking policy developments and scaling carbon dioxide removals (CDR) in the EU, has published an analysis on EU and the US funding for research, development and innovation (RD&I) of carbon removal methods at different technological readiness levels (TRLs).

The findings show the US government has spent a total of $1.86 billion on carbon removal research, development, and innovation, significantly surpassing the EU which has spent €613 million. 

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One of the reasons for that is aside from appropriations from the annual budget for government agencies, the 2021 Bipartisan Infrastructure Law (BIL) provided several billion dollars to support demonstration projects for direct air capture and enabling infrastructure for geologic sequestration of CO2 as well as CO2 pipelines.   

Credit: Carbon Gap

The Bipartisan Infrastructure Law provided $3.5 billion to fund four Regional Direct Air Capture Hubs, the Inflation Reduction Act – the second major climate law passed in recent years, expanded the 45Q tax credit that supports DAC and BECCS developments. The US Department of Agriculture also received $300 million to improve measurement, reporting and verification for carbon removal via sustainable agriculture and forestry. 

The EU still has to address some issues that are preventing robust RD&I funding, according to the Carbon Gap analysis. Some of the issues are no dedicated RD&I funding programs for CDR in Europe, funding opportunities scattered across many sources and some technologies have to compete with others in most funding programs. Additionally, more CDR methods need to be adequately involved and covered by legislation. 

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In the United States, on the other hand, CDR is attracting attention and funding that is constantly increasing considerably over the past five years, both in annual appropriations and through other legislation. More about the analysis’ insights can be found here.

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