Carbon dioxide removal (CDR) is essential for achieving the long-term climate goals of net zero and net negative. This requires the creation of an entirely new industrial sector within just a few decades. This brief focuses on the market structures and policy mechanisms needed to scale novel CDR solutions beyond 2050. It outlines a hybrid approach that combines obligations for residual emitters, country-specific targets, and a dedicated fund to ensure sufficient demand and investor confidence. These mechanisms represent one possible approach to supporting the emergence of a functioning removal market that can operate at scale in the post-net-zero era.
To guide this scale-up, the brief proposes a long-term roadmap with clear targets, financial incentives, and a sequenced strategy for building market structures. Strategic sequencing starting now and extending beyond 2050 is essential to reduce costs, build political support, and ensure readiness.
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.
Further information: Juha Turkki, juha.turkki@clc.fi
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