DG CLIMA is exploring an EU-wide purchasing program for permanent carbon dioxide removal (CDR). The goal is to encourage investments and boost technological progress. This initiative aims to help Europe meet its climate targets.
Europe needs to expand permanent CDR quickly. However, demand for these technologies remains low. This demand gap limits large-scale deployment.
To address this, DG CLIMA published three new reports. These reports were created by Ramboll Management Consulting and Ecologic Institute. They examine different policy options and funding strategies.
The first report, An EU Purchasing Programme for Permanent Carbon Removals, assesses short-term policy options. It explores how an EU program could create demand from 2025 to 2030. The report recommends purchasing not just removal credits but also supporting market growth. Diversifying types of credits encourages innovation and market efficiency.
The report suggests funding sources like the EU budget, contributions from Member States, and private investments. It also recommends connecting with existing initiatives such as the Innovation Fund. This can streamline processes and increase attractiveness.
A recent stakeholder workshop, held on 21 May, discussed investment motivations and prerequisites for an effective program. Experts emphasized the importance of strategic purchasing to build a robust CDR market.
Two additional reports examine Europe’s current CDR landscape. Carbon Removals in the EU reviews existing projects and future potential. It assesses technologies, costs, funding, and barriers. The report maps projects planned up to 2035.
The third report, Assessment of EU Funding Programmes, looks at current EU support. It reviews programs like Horizon Europe and the Innovation Fund. It also explores new funding models to support early-stage CDR projects.
DG CLIMA’s work aims to accelerate Europe’s climate efforts. A purchasing program could significantly increase the supply of permanent CDR. This would help the EU meet its ambitious climate goals.
