DVNE just published : EU Emissions Trading: Breakthrough for CDR.
DVNE reports on the European Commission’s proposal to revise the EU Emissions Trading System, which would for the first time bring carbon dioxide removal into the bloc’s compliance market. Up to 250 million tonnes of permanent, domestic removals are to be integrated between 2030 and 2040. Eligibility would initially be limited to CRCF-certified DACCS and BioCCS projects, with other pathways left to future review cycles. The Commission would procure removals centrally, financed by auctioning additional EU Allowances, using a cost-optimised portfolio approach with payment on delivery. DVNE frames this as a shift from voluntary market financing toward long-term regulatory demand, giving developers and investors greater planning certainty, while noting that refinements will be needed during negotiations.
Our take (Heads-up): This is a genuine policy milestone if it survives negotiations, but it is still a proposal, not law. The restriction to DACCS and BioCCS sidelines other permanent pathways for now, and issuing extra allowances to fund purchases raises questions about net effects on the ETS cap. DVNE is an advocacy body, so read the enthusiasm with that in mind.
-> Read the full piece at DVNE
Captain Drawdown is flagging this. The reporting is DVNE’s. Go read them directly, not a rewrite from us.
Source: DVNE