- DG CLIMA is designing an EU-wide programme to purchase permanent carbon dioxide removals.
- The programme aims to create demand and boost technology development from 2025 to 2030.
- Funding sources include the EU budget, Member States, and private contributions.
- Reports assess current CDR projects, funding needs, and potential new funding models.
EU Carbon Removal Initiative
To achieve climate neutrality and net-negative emissions, Europe needs to scale up permanent carbon dioxide removals (CDR). However, insufficient demand remains a barrier to large-scale deployment. To address this, DG CLIMA is exploring an EU-wide purchasing programme for permanent CDR to encourage investment, boost technological progress, and meet EU climate targets.
Reports and Recommendations
DG CLIMA has published three reports written by Ramboll Management Consulting and Ecologic Institute, assessing policy options and recommendations for a short-term purchasing programme. The first report suggests that the programme should not only buy removal credits but also help grow the market by strategically purchasing various types of removal credits. It recommends using a mix of funding sources, including the EU budget, contributions from Member States, and private funding, while connecting with existing initiatives like the Innovation Fund.
Current Landscape and Funding Needs
Two additional reports provide insights into Europe's current CDR landscape and funding needs. One report offers a comprehensive overview of the current state and future potential of permanent CDR in Europe, assessing technologies, costs, funding needs, and deployment barriers while mapping existing and planned projects up to 2035. The other report reviews EU programmes such as the Innovation Fund and Horizon Europe that support CDR companies and explores innovative funding models to strengthen early-stage CDR projects.
