A Transatlantic Dialogue: Why no one can do it alone - the imperative for local action and global collaboration in carbon removal

The challenge of scaling carbon dioxide removal (CDR) from today's nascent $2 billion market to a $500 billion industry by 2050 reveals a clear truth: no single entity – whether government, corporation, or international body – will be able drive this transformation alone. Recent developments in both the US and EU demonstrate why this challenge requires an unprecedented level of coordination between local action and global collaboration. 

Such was the salient takeaway from a discussion Carbon Gap CEO Christoph Beuttler hosted on 4 October, 2024 between key decision makers in scaling the market for carbon removals - Noah Deich (US Department of Energy), Fabien Ramos (European Commission), Jane Flegal (Stripe) with opening remarks provided by Jack Andreasen (Breakthrough Energy). The full event can be found here with key highlights from the discussions presented (and time-stamped) below.

The scale challenge that changes everything 

When Frontier, backed by major tech companies, announced its $1 billion advance market commitment for carbon removal, it was a watershed moment. Yet this commitment, impressive as it is, highlights the magnitude of the challenge rather than solving it. "The voluntary carbon market in its entirety, the vast majority of which does not go to permanent solutions, is something like $2bn a year" [41:41], explains Jane Flegal, who leads Frontier's policy and market development efforts. This gap isn't just a matter of money – it represents a fundamental gap between current approaches and the scale required. 

As Jack Andreasen from Breakthrough Energy notes, "we currently don't have a clear path for demand between now and when these compliance markets that either exist or are in the process of being formed come into play, and so near-term demand is one of the most important things that we can seek to accumulate, whether through private purchases or near-term policy solutions" [06:17]. 

Why traditional approaches fall short 

Traditional climate policy typically follows top-down international frameworks or bottom-up local initiatives. When it comes to CDR, some dynamics must be taken into account: 

1. The technology-policy feedback loop: As most solutions are non-mature today, CDR technologies need large-scale deployment to reduce costs, yet their current high costs make that same deployment challenging. This dichotomy creates a chicken-and-egg problem that neither pure market forces nor traditional regulation can solve alone. 

2. The geography puzzle: While carbon removal benefits are global, the investments, jobs, and infrastructure are intensely local. "The realities of these projects, the fact that we're making investments into communities across the United States, those realities on the ground matter more than messaging" [23:49], emphasises Noah Deich from the US Department of Energy. The Texas Direct Air Capture facility, for instance, creates local jobs in a traditionally fossil fuel-dependent region while serving global climate goals. 

3. The standards challenge: Globally accepted standards are necessary for measuring and verifying carbon removal, as consistency will be critical to enable local initiatives to connect efficiently and scale into cohesive markets. As Noah Deich explains, "we need to figure out how to not recreate the wheel here and get to a place where we have some standards that everybody can point to" [15:26]. "Making sure that when we say carbon removal, we're all talking about the same thing, and that in order to prove that the carbon removal that happened is the same carbon removal in any geography you're following a similar set of basic protocols and standards" [50:01]. This harmonisation of standards presents a crucial opportunity to unite local initiatives into an efficient, scalable global market. 

The new model: coordinated autonomy 

A transatlantic discussion shows emerging US and EU approaches and a new model of "coordinated autonomy", combining local action with global coordination in key areas. 

1. Standards with flexibility: The EU's Carbon Removal Certification Framework provides a blueprint for how shared standards can accommodate local variation. "The Certification Framework is really the first stepping-stone into how to build trust in the market" [14:51], explains Fabien Ramos, from the European Commission. Rather than prescribing exact methods, it establishes core principles while allowing member states to adapt implementation to local conditions. 
2. Market development through multiple channels: Success requires parallel development through government procurement programmes, which establish baseline demand and market confidence. Private sector advance market commitments provide critical early signals and drive innovation. Compliance markets create long-term certainty, while voluntary corporate purchases bridge crucial gaps. As Jack Andreasen notes, "procurement is not a one-stop shop and won't get us to the totality of tons that we need by 2050. Instead, what you're going to see is a sort of mosaic of policies across geographies" [03:45]. 
3. Technology-neutral innovation support: Both regions are learning to support innovation without picking winners. "We need to be both diversifying the risk across investment across a wide range of approaches but also recognize that we are going to need a range of approaches to hit our climate goals" [57:50], emphasises Jane Flegal. The US Department of Energy's carbon negative shot program and EU's Horizon Europe funding exemplify how to encourage diverse approaches while maintaining high standards. 
4. Community-centered deployment: Successful projects demonstrate that local benefits – jobs, economic development and environmental improvements – are not secondary considerations but central to scaling CDR. "As long as these projects continue to deliver benefits to communities, and those communities are across a diverse set of geographies, often leveraging workforces in fossil fuel communities looking for a pathway to having high-quality jobs in a net zero economy, this is a great opportunity" [24:19], explains Noah Deich. 

Making it work: action steps for key players 

Corporate leaders face a transformative challenge in the carbon removal landscape. "The voluntary market will never reach $500 billion annually on its own" [42:42], notes Jane Flegal, "but it can help create the conditions for compliance markets and government action to achieve that scale." Successful corporations are forming strategic buying consortia to aggregate demand, creating the critical mass needed for market development. These companies actively engage with policymakers in the process of developing standards , ensuring their early investments align with emerging frameworks. Moreover, they recognise that community benefits where projects are deployed aren't just good practice – they're essential for scalability. 

Policymakers must think beyond traditional regulatory approaches. As Fabien Ramos emphasises, "today we are thinking about some carbon removal solutions... but who knows? Maybe by 2030 or after 2040 we realise that the most efficient carbon removal is enhanced weathering, or something else" [11:46]. This uncertainty requires developing flexible frameworks that can link with other jurisdictions while encouraging both innovation and deployment. The focus must be on enabling infrastructure that serves multiple projects and adapting to technological evolution. 

Investors need to reshape their approach to evaluation and risk assessment. "The key is that they won't get to a lower cost unless everyone starts to invest today," observes Noah Deich [50:55]. "And so, it's overcoming that collective action problem that I think a government signal will be really, really important to solve." Successful investors are looking for projects that combine strong local support with global scalability, while carefully evaluating how investments align with emerging international standards. The most sophisticated players consider the full value chain, including measurement and verification services, recognising that long-term success depends on robust infrastructure beyond just carbon removal technology. 

The path forward 

The next three years will be critical for carbon removal development. The EU's Carbon Removal Certification Framework implementation will establish crucial standards and guidelines. The scale-up of US Direct Air Capture hubs will demonstrate practical deployment at scale. Most importantly, the development of international carbon removal purchasing frameworks will create essential market infrastructure. As Jack Andreasen notes, "understanding that there are political differences between each one of these different geographies, and those political differences manifest themselves in the policies that are able to be passed, we need to get to the multi-gigaton scale that we'll need by 2050" [07:35]. 

Success requires a mindset shift from viewing carbon removal as either a local or global challenge to seeing it as necessarily both. The only wrong approach is doing nothing. We need everyone pushing forward in their own way while staying connected to the bigger picture. 

Taking action now 

Organisations must prepare by understanding their roles in both local and global contexts. This foresight involves building robust relationships across the public-private divide, investing in comprehensive understanding of both technical and social aspects of carbon removal, and actively participating in standards development. As Fabien Ramos concludes, "we need to find a way to find the right place for carbon removals in the framework of all policies, and we are looking at different options" [52:52-53:07].  

The scale of the carbon removal challenge makes it impossible for any single entity to succeed alone. Through coordinated autonomy – combining local action with global collaboration – we can build the frameworks needed to scale this critical climate solution. The question isn't whether to focus on local or global action, but how to do both effectively. 

By Julie Gosalvez - Carbon Gap Special Advisor