This Summer, the European Commission will propose to integrate permanent removals into the EU’s Emission Trading Scheme (ETS). Removals in the ETS can help both industry and the climate – but only if the sector is given a credible path to rapidly scale up.
8 April, Brussels: Negative Emissions Platform launches its ‘ETS needs removals’ campaign.
Permanent carbon removals can bolster both Europe’s industrial and climate ambitions – if the ETS reform sets out a clear pathway for the sector to quickly scale-up.
Scientific consensus holds that by 2050 globally 5-10 gigatons of permanent removals will be needed each year to reach Net Zero.
The carbon removal opportunity
Market-based instruments like the ETS can be a key to efficiently scale-up permanent carbon removals, and without undermining Europe’s all-important emission reduction efforts.
But importantly, integrating removals into the ETS will equally help Europe’s struggling industry.
Companies will have additional options to deliver on their climate obligations. Permanent removals will provide important trading liquidity into the ETS, and will curb price increases as the supply of emission allowances tightens.
The integration of removals is also a key clean tech opportunity for Europe. The global market for permanent removals will be worth multiple billions of euros with estimates going up to 1 trillion euros. Europe already enjoys a technological lead. ETS integration is a chance to translate this into industrial leadership.
The campaign is launching with a dedicated webpage and video and will culminate at the industry’s annual Negative Emissions Summit in Brussels on 4 June.
Chris Sherwood, Secretary General of Negative Emissions Platform said:
“As Europe is debating the future of the ETS, permanent carbon removals offer a solution for both industry and climate. But integration needs to support the scaling of the removals sector too – that means that the ETS must retain its climate ambition, and give sufficient clarity for carbon removal investors. Above all, the EU must start ramping up permanent removal projects now.”
