🇪🇺 Putting the 'net' in net zero: carbon removals and the EU emissions trading system (#EUETS)🇪🇺

I firmly believe that we will need compliance markets to scale carbon dioxide removal (#CDR) to climate relevance and achieve net-zero. They simply provide unparalleled scale - we are talking tens to hundreds of billions that could go into CDR. With 87% of the global share and a trade volume of €751b in 2022, the EU ETS is - by far - the most important tool available to drive this scale-up.

💡 Over the last months, we at Carbonfuture have done a lot of research on this topic, which we shared here on LinkedIn and which clearly struck a chord for many people.

If you missed them, here they are:

➡ Compliance markets: https://lnkd.in/dvQ82see

➡ ETS-CDR Linking: https://lnkd.in/eNaBXdwC

➡ Carbon Central Bank: https://lnkd.in/dADB9Ahj

➡ Chinese VCM: https://lnkd.in/dSUUd3tv

We have decided to write up our insights into a dedicated blog post which we are proud to share today.

💡 We argue that linking CDR technology to carbon markets is the best tool to achieve net-zero emissions in Europe (and beyond). CDR should ideally be integrated through a dedicated Removal Trading Scheme (#RTS). Alternatively, if integrated directly into the ETS, an intermediary body such as a Carbon Central Bank should be established. Finally, in any scenario, emphasis should be on permanent carbon removals only, as outlined by the European Carbon Removal Certification Framework (#CRCF).

Very keen to hear your take. Do you agree with our assessment? Are we missing something?

🔗 Check out our exclusive analysis on the role of carbon removals in the EU ETS in the Carbonfuture magazine: https://lnkd.in/dsyfYpr9

Follow the conversation