The European Union is encouraging its carbon removal market with regulation rather than financial reinforcement, but experts believe the policy framework will establish trust in a market that could otherwise greenwash climate action.
In November, the EU announced a new regulatory framework for carbon removal companies called the Carbon Removal Certification Framework (CRCF). The aim is to provide a trustworthy certification process for all carbon removal technologies and help secure the science behind a growing market.
The framework proposal has been criticized for lacking detail and stringent definitions that would ensure technologies are removing what they say they are removing. But specialists are optimistic the final product will reflect the necessary changes and boost the market as a result.
“There’s a sense that regulation can be a barrier,” said Josh Burke, a senior policy fellow at the Grantham Research Institute on Climate Change and the Environment. “But good regulation can be a driver of innovation and market creation.”
The need to boost carbon removal
In January, a study showed that only a tiny fraction (0.1 percent) of carbon removal from the atmosphere is a result of new carbon dioxide removal (CDR) technologies. The rest (99.9 percent) comes from nature-based removal approaches linked to changes in land or forest management. Experts said a rigorous certification process such as the one proposed by the EU could be one ticket to boosting the industry.
The EU has a strong track record for creating climate-related regulatory frameworks. In 2005, it established the EU Emissions Trading System (EU-ETS), which requires European companies to purchase credits to emit, and it provides an overall cap on the continent’s emissions. Currently, carbon removals issued under the CRCF would not be tradeable under the EU-ETS, however, industry professionals see potential to connect those regulatory systems.
There’s a sense that regulation can be a barrier. But good regulation can be a driver of innovation and market creation.
“[The carbon removal market] could be part of ETS where removals are something that need to be bought by emitters,” said Harald Bier, secretary-general of the European Biochar Industry Consortium (EBI), which