The Negative Emissions Platform (NEP), in collaboration with CDR.fyi and AFEN, has created a new toolkit for decision-makers that highlights what can be done to stimulate the growth of the carbon dioxide removal (CDR) sector through policy frameworks.
Drawing from experience from frontrunning countries in this industry, the toolkit provides actionable pointers for ministries, agencies, and funding bodies, offering pathways that could help advance CDR to megatonne levels by the 2030s.
The timely CDR industry scaling needs immediate action and long-term commitments, which would attract investments and support for bankable projects, launching a journey that would enable learning curves and economies of scale.
The support for CDR should cover a broad portfolio of technologies, including oceanic, terrestrial, and geologic approaches. This diversification would hedge against a technological lock-in while bringing more co-benefits and respecting the environmental boundaries that limit the gross CDR budget.
On the policy front, CDR advancement will demand regulations that accelerate technological improvements and drive down costs. As explained in the toolkit, both supply-push and demand-pull incentives are required.
A developed CDR sector would contribute towards a balanced climate while offering a competitive industrial edge and introducing up to 180,000 projected job openings in Europe alone by 2035.
To that end, policy support should match funding tools to different CDR pathways according to their maturity level, progressively expanding the backing as the approach itself scales.
The first phase should be pinning down potentials and engaging with stakeholders to establish a solid evidence base, followed by a testing phase in which grants would enable research, pilots, and demonstration support, and regulatory innovation can help flag and address early barriers.
Relevant: Carbon Business Council Publishes A CDR Guide For Policymakers
When it comes to boosting CDR supply, the support can come in the form of concessional loans, loan guarantees, direct procurement, and tax credits. This would improve revenue streams and help de-risk investments funneled into emerging CDR projects.
To promote CDR demand, decision makers should deploy advance market commitments, contracts for difference (CfD), and purchase guarantees to signal strong demand and build market confidence.
Additionally, regulators should also work on facilitating the CDR integration into supranational, economy-wide, or sectoral mandates and regulatory markets as self-sustaining sources.
Read more: Five European Countries Join Forces On CDR In New Nordic Carbon Removal Association (NCRA)
