High costs are slowing down scalable solutions
CDR encompasses a range of technologies and approaches that actively remove CO₂ from the atmosphere. While current voluntary markets account for a few dozen megatons of CO₂ removals annually, the estimated requirement to reach net zero by 2050 is up to 9 gigatons per year. This stark contrast highlights both the urgency and the opportunity for forerunning companies to scale CDR solutions.
Methods such as Bioenergy with Carbon Capture and Storage (BECCS), Biochar Carbon Removal (BCR), and Direct Air Capture (DAC) represent the most viable options currently available. However, These technologies are still in the early stages of development, and their cost level currently exceeds what is commercially viable. Bridging this gap will require proactive government intervention to accelerate market development, scale up the technologies, and reduce costs.
Carbon Capture and Utilization (CCU) based products play an important role in reducing greenhouse gas emissions. In addition to these removal methods, also Carbon Capture and Utilization (CCU)has potential. Products and materials derived from biogenic or atmospheric CO₂, such as certain construction materials, can provide also medium-or long term carbon storages. which has not yet been fully recognized in climate policy . Targeted incentives and regulatory recognition are needed to fully integrate CCU into the broader carbon management ecosystem.
CDR integration from Europe to global
Europe is well-positioned to lead in CDR integration. The EU has established effective carbon market infrastructure, and countries such as those in the Nordic region offer substantial potential for carbon storage and utilization. Integrating CDR into the EU ETS would serve two functions: it would enhances the investment environment for CDR technologies and provides a mechanism for companies within the EU ETS to neutralize their residual emissions.
At a global level, it is critically important to develop a dedicated market mechanism that ensures investments in sufficient carbon dioxide removal (CDR) capacity to meet the demands of the net-negative emissions era. Such a mechanism must ensure that incentives for CDR persist beyond the achievement of net zero, supporting the transition from early-stage deployment to large-scale removal and long-term climate stabilization. Since building such a mechanism takes time, its planning and preparation must begin without delay.
Our recommendations to the EU
A separate market mechanism for the net-negative period is needed. The preparation of this mechanism should begin during the current Commission’s term.
A policy roadmap must be prepared for scaling carbon removal capacity to reach net-zero and after that net negative.
The markets for carbon removals after global net-zero must be taken into global climate agenda. For this the EU should emphasize the long-term need for carbon removal as part of the Global Climate and Energy Vision for COP30.
