Carbon dioxide removal (CDR) portfolio platform Milkywire has released a set of recommendations aimed at helping corporate buyers set concrete short- and long-term carbon removal targets.
Prompted by the current climate action landscape, in which CDR is not developing at the pace necessary to meet the targets crucial for avoiding further global warming, along with a lack of clarity on specific corporate CDR deals, Milkywire put together a white paper suggesting ways in which companies can solidify their decarbonization strategies with actual steps.
The paper, put together by lead author Robert Höglund, Head of CDR and Climate Strategy at Milkywire, and contributing author Alexander Farsan, Head of Climate and Environment at Klarna, proposes that companies estimate their long-term CDR needs that would drive them towards reaching their net-zero targets.
In this regard, the authors highlight that these CDR needs might be different for each industrial sector.
Companies should also set targets that are near-term, based on annual delivery or the available budget, which will be aligned with the overall long-term needs. Establishing monetary targets in the short term could also help avoid too early cost competition in the rising CDR sector.
The authors advise matching the CDR permanence to the amount of emissions, for example, pursuing only durable CDR for fossil emissions.
Another vital step is allocating a budget for CDR and wider climate action. To finance these operations, the paper suggests setting an internal CO2 fee that would be adjusted over time as the climate targets evolve.
Relevant: Milkywire Updates Its Guidance On Setting An Internal Carbon Fee
According to the paper authors, companies should aim to support diverse CDR methods, where the focus shouldn’t be on the cheapest options but rather directed towards innovative approaches, stimulating their development and industry growth.
Lastly, corporate CDR buyers should also work on adopting transparent communication, where plans and their progress, as well as the encountered obstacles, will be openly shared with the public.
Read more: Nasdaq Survey: 57% Of Corporate Buyers Plan To Buy Carbon Removal Credits
