📍 Where EU CDR policy actually stands right now

🇪🇺 Just wrapped up a week of meetings and events across European institutions. Here are my hot takes on the TOP FIVE policy files for CDR:

🏭 ETS: 

CDR integration is a given at this point, DACCS/BECCS only (initially) as well. The focus is shifting to other questions: within or on top of the cap? International credits Y/N? And - this is a big one - will there be specific quantities/volumes or will the Commission kick the can down the road?

🎯 National CDR targets: 

We failed to get dedicated CDR targets as part of the 2040 90% target. There is a second opportunity now for national CDR targets as part of the Q4 package. This would be huge for the sector, but is very politically charged. And there are serious pros and cons to doing it at this level.

🤝 Buyers Club: 

Two weeks since the launch, reactions are tepid. For durable removals, concerns focus on the lack of new buyers, questions around whether upcoming offtakes would have happened anyway, technological concentration on BioCCS/BECCS, and the lack of ownership of the process by the EU Commission. For carbon farming, the set-up seems to lack teeth and buyers.

🌐 International credits: 

The hottest topic in town right now. Unexpected alliances are forming on this one. The key question here: what type of credits and what quality criteria? CRCF+? Article 6.4? And will CDR become the go to choice or will we see a race to the bottom here?

🚢 CBAM: 

Surprisingly little attention to this file. Seems like the obvious underdog to me, with tons of potential to shape best practices for carbon pricing systems all around the world. The current proposal to allow up to 10% Article 6.4 credits could have a big impact on CDR globally, but the topic seems to still be niche for most.

🤓 Summing up: 

Things are moving in Brussels. The momentum is tangible, and a LOT is at stake. Thrilled to have been elected to the Board of the Negative Emissions Platform this week to really get my hands dirty on the topic above over the coming months and years.

🔥 On Monday I will also be dropping my fireside chat with Oliver Geden held at the NEP Summit. I loved getting Oliver’s take on many of the topics above as well as some bigger, global developments. Watch out for this special CDR Policy Scoop on Youtube or wherever you get your podcasts.

❓ To all the CDR policy insiders out there: what's your read on any of the above? Also, did I miss anything?

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