EU Moves to Add CDR to Its ETS — and May Become a Direct Buyer of Removals

Heatmap News just published The Carbon Removal Buyer the World Has Been Waiting For.

Heatmap News reports that the European Commission is expected to publish a proposal to reform the EU Emissions Trading System to align it with the bloc’s 2040 target of cutting emissions 90% below 1990 levels. For the first time, the reform would let carbon removals into the scheme, defining which removal types qualify, how many credits can enter the market, and who can buy them. One leading option would have the EU government purchase removals directly, giving the sector rare demand certainty. Isometric policy manager Felix Grey suggests the ETS could become the dominant demand driver for carbon removal over the next decade. Open questions include how fast the cap declines through the 2030s and the future of free allowances for heavy industry.

Our take (Heads-up): This is the most consequential CDR demand signal in years, but everything hinges on rules not yet published. Key risks the piece rightly flags: removals could substitute for real emissions cuts, or prove so expensive they change nothing. Watch quantity limits, eligible pathways, and whether direct government procurement survives member state negotiations.

-> Read the full piece at Heatmap News

Captain Drawdown is flagging this. The reporting is Heatmap News’s. Go read them directly, not a rewrite from us.

Source: Heatmap CDR