Accelerating Carbon Abatement

CDR.fyi analyzes a potentially consequential European Commission proposal to revise the EU Emissions Trading System by auctioning 250 million additional EU Allowances and using the revenue to procure an equivalent amount of permanent carbon removals, primarily from BioCCS and DACCS projects. The analysis stresses that the 250 million figure represents an intended ceiling and policy intention rather than a guaranteed or fully financed purchase order, since the programme would move from proposal to actual procurement only if legislation passes, projects meet eligibility rules, sufficient funding is assembled, and removals are delivered. The piece highlights that the proposal embeds durable removal within the architecture of a major compliance market, establishes that permanent removal can substitute for emissions reductions with like-for-like durability, and would have the Commission purchase removals centrally rather than letting individual emitters swap allowances for credits. It also examines the tight funding case if removal costs stay well above allowance prices, the 2030s timeline for meaningful purchasing, and why biochar is currently excluded… Click below to read more