🔎 More clarity on CDR in the EU ETS

📑 The European Parliament has released more than 3,000 amendments to the ETS revision proposal made by the members of its ENVI Committee.

🎙️ I have previously covered the positions of the Rapporteur Peter Liese and the Shadow Rapporteurs both here on LinkedIn and on the Carbon Removal Scoop. Now that we have the full picture, time to see what might change.

👍 Big picture for removals, it seems like the EPP - the largest block in Parliament - has largely rallied behind Peter Liese’s lead, and gone even further. That is good news, as his take is very favourable overall for CDR.

🔵 In more good news, several Renew MEPs made suggestions which build on Emma Ytterell (fd. Wiesner)’s draft in several positive ways, e.g. more tech neutrality, 300Mt, and earlier starts.

🙅 As for the S&D, Greens, and the Left, no major changes - still the biggest opponents to CDR in the EU ETS, e.g. ranging from no CDR at all, to 100Mt max and DACCS only.

When it comes to specific points:

▪️ The link to the CRCF is getting stronger. Still open whether it will be direct or with a delegated act to define additional permanence and liability criteria.

▪️ Biochar’s path into the ETS looks ever more solid. The debate seems to shift more to whether it should be capped or not.

▪️ Several MEPs are pushing for a direct integration route, mostly deducted from the overall envelope, but some additional.

▪️ There seems to be real momentum behind a 2029 start, with some suggesting even sooner.

▪️ The EPP is pushing to move the review clause from 2034 to 2029, including explicitly asking to review rock weathering, mineralisation, ocean alkalinity enhancement and direct ocean capture with carbon storage.

▪️ International credits remain one of the most hotly debated topics, ranging from potential increases above 260Mt to scrapping them altogether. I expect fierce fighting over whether to keep it in or not.

🤝 Overall, this is shaping up really nicely. A lot can happen in the upcoming negotiations, but important majorities are starting to form behind some of the most important points for the removals industry.

🏛️ We expect a final negotiated position from ENVI by early December, with a plenary in Parliament currently scheduled for December 14th.

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