💥 EU ETS Consultation is out! Including CDR integration 💥

🇪🇺 Time to have your say. The European Commission has just published the long-awaited consultation for the upcoming major revision of the EU Emission Trading System (hashtag#EUETS).

😮 The EU ETS is - by far - the largest compliance market for carbon in the world and accounts already for >40% of EU emissions. So this is a big one.

For CDR specifically, the consultation inquires about:

1️⃣ A potential integration of solutions with permanent underground storage (BioCCS and DACCS specifically) or permanent storage in products.

2️⃣ The scope and criteria for such integration.

3️⃣ The safeguards to prevent mitigation deterrence.

👉 This is our call to action folks! Integration of CDR into the ETS would be a game changer for the industry. The scope is still wide and it is crucial that we make a clear case for why CDR should be integrated and - crucially - what kind.

🔴 My biggest fear, and one so far confirmed by the wording of this consultation, is that the EU Commission will not adopt a tech-neutral approach and instead pick and choose specific technologies. That is the wrong way to go. Instead, it should specifically reference the CRCF Regulation (not mentioned once here) and let the CRCF be the gatekeeper for what permanent removals are deemed high quality enough for the ETS or not.

✈️ By the way, CDR is just one element of the consultation. There is so much other incredibly important stuff in there such as aviation: should the EU extend the ETS to all flights landing or departing in the European Economic Area (EEA)? Currently, only intra-EEA flights are covered, which constitute 20% of emissions only. This will also include an assessment of CORSIA.

🗣️ Folks, now is the time to step up and make our voices heard! A lot is at stake.

📅 Key Timelines

🔹 April 2025: Public consultation opens for 12 weeks via “Have Your Say”

🔹 2025: Stakeholder interviews, surveys, and data collection

🔹 July 2026: Deadline for review clauses on ETS1 sectors

🔹 Q3 2026: Legislative proposal + evaluation & impact assessment expected

❓ What is your take on this? What should we be asking for?

Follow the conversation