Last week, a Senate bill in California proposed an $80 million investment for the procurement of carbon dioxide removal (CDR).
The bill, referred to as SB 643, envisions the investment to be channeled towards the purchase of carbon removal credits in the period between 2026 and 2030.
The purchase will be made on behalf of the state, which is expected to invest in one of four carbon removal technologies, including direct air capture (DAC), biomass carbon removal & storage (BiCRS), enhanced weathering (ERW)/mineralization, and marine carbon removal (mCDR).
Purchases will be limited to $40,000,000 in credits issued by CDR projects operating in any one of the specified project categories, while investments in credits issued by an individual CDR project sponsor will be limited to $20,000,000, unless an exception is specified.
This bill aligns with the 2022 Scoping Plan for Achieving Carbon Neutrality presented by the State Air Resources Board—a California agency in charge of monitoring and regulating greenhouse gas sources that has set state targets of removing 7 million metric tons of CO2 equivalent by 2030 and 75 million metric tons by 2045.
Introduced by Democratic Senator Anna Caballero, the bill comes amid growing concerns that climate change poses a serious threat to California’s resources and citizens.
Beyond just limiting the current release of CO2 emissions, this bill emphasizes that carbon removal will also play an important stabilizing role in the state by tackling the greenhouse gases that are already emitted in the atmosphere.
This bold investment would provide crucial early-stage funding for CDR project developers, creating demand for their solutions and boosting their further advancement.
Relevant: New Bipartisan Legislation Supports mCDR Development In The US
In return, the CDR technologies that would benefit from this funding would contribute not only to high-quality carbon removal in California, but they would also introduce community benefits, helping clear the air and protecting the environment.
Before CDR investment decisions are finalized, the bill requires that at least two public workshops be conducted, in which the local population would have the chance to provide their opinions and feedback on the matter.
Read more: New Study Says Enhanced Weathering Could Unlock Meaningful CDR In US Agriculture
