Access to EU state aid and emissions trading is key to scaling up carbon removal

According to a report by Boston Consulting Group, the German government should introduce a support system that includes the purchase by the state of RDF certificates, one-off subsidies for individual projects and carbon difference contracts.

Removing carbon dioxide (RDF) from the atmosphere will be key to achieving climate neutrality, and scaling up relevant technologies requires subsidies and integration into European emissions trading systems (EU ETS), according to a report commissioned by the German Negative Emissions Association (DVNE) lobbying group.

Germany and the EU need a short-term strategy to accelerate CO₂ phase-out

The strategy should push for technologies that include the ability to store CO2 permanently and that operate within a manageable price range. “The integration of the CDR into the EU emissions trading system (EU ETS) is one of the most important levers for creating a sustainable and large-scale demand for permanent CO₂ removal,” states the report by the Boston Consulting Group (BCG). The report proposes a gradual integration starting in the early 2030s, initially focused on permanent carbon removal, usually through underground storage. In addition, the German government should introduce a national support system that includes the purchase by the state of RDF certificates, one-off grants for individual projects and carbon contracts for difference (CCfD).

Source: The Energy Newspaper