Negative Emissions Platform reposted this
📈 Permanent carbon dioxide removal (CDR) activities must be scaled up drastically to meet EU climate targets. However, despite the significant public benefits they offer, high upfront investments and operational costs hinder the development, deployment, and diffusion of CDR technologies. 📊 We conducted a survey conjointly with Negative Emissions Platform, to identify financing barriers and better understand where policy interventions might be necessary. 🗝️ Here are 4 key findings: 𝗔𝗱𝗱𝗿𝗲𝘀𝘀𝗶𝗻𝗴 𝗰𝗮𝗽𝗶𝘁𝗮𝗹 𝗰𝗼𝘀𝘁𝘀: Capex remains a significant barrier for most CDR methods. Both pre-commercial and commercial-scale systems need targeted relief through mechanisms such as investment subsidies and loan guarantees. 𝗥𝗲𝗱𝘂𝗰𝗶𝗻𝗴 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗰𝗼𝘀𝘁𝘀: Policy interventions must address Opex to enable CDR business models. For instance, access to affordable renewable electricity can influence siting decisions for energy-intensive methods like DAC, ensuring firms avoid relocating to regions with lower costs. 𝗖𝗮𝘁𝗮𝗹𝘆𝘀𝗶𝗻𝗴 𝗱𝗲𝗺𝗮𝗻𝗱: CDR developers emphasise the transformative potential of demand-side mechanisms. Price guarantees such as Contracts for Difference (CfDs) provide revenue predictability and stability. Public procurement of CDR units offers a lifeline for CDR projects by bridging the gap to future market demand, thereby fostering scale and learning curves. 𝗣𝗵𝗮𝘀𝗶𝗻𝗴 𝗶𝗻 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗽𝗼𝗹𝗶𝗰𝘆: Over the longer term, compliance mechanisms need to establish reliable demand for CDR. However, market-based incentives must be complemented by separate targets and clearly defined strategies for CDR in climate policy. Read the full blog below for an in-depth data analysis of the survey. 👇 Interested in an assessment of CDR research gaps and how to better finance them? Visit our brand-new database. 👉 https://lnkd.in/eqdPi5yA #CDR #CDRPolicy #CarbonRemoval Francesca Battersby, Atilla Yucel, Alina Toporas
