Fostering demand for CO2 removal: a critical need for climate goals

The global climate crisis demands urgent and innovative solutions to mitigate carbon emissions. One of the critical components in achieving net zero emissions by 2050 is the effective deployment of carbon dioxide removal (CDR) strategies. While various carbon abatement technologies are being developed, they alone won’t suffice. There is a real need to scale CDR methods to address the residual emissions that are either too expensive or technically unfeasible to eliminate through current abatement technologies. This is particularly important for participants in the natural gas market. Technologies such as CCUS and hydrogen can gradually decarbonize gas, but addressing the remaining emissions is still necessary, where CDR methods prove effective.

According to the Intergovernmental Panel on Climate Change (IPCC), CDR is indispensable for counterbalancing hard-to-abate emissions. Projections indicate that by 2050, approximately 6 to 10 gigatons per annum (Gtpa) of CO2 will remain unabated. These residual emissions are expected to be predominantly from the industrial (40%), energy supply (30%), and transport (20%) sectors. Without CDR, reaching global net-zero targets remains improbable.

Policy and market drivers

To foster CDR adoption, a robust policy framework is essential. Governments must leverage a combination of carbon pricing mechanisms, regulatory requirements, and financial incentives. These measures can help create a viable market for CDR technologies, driving innovation and reducing costs over time. For instance, carbon pricing can internalize the environmental costs of emissions, making CDR solutions more competitive. Regulatory mandates can compel industries to adopt CDR technologies, while financial incentives can reduce the upfront costs associated with implementing these solutions.

CDR methods vary in durability and technological maturity. Lower durability methods, such as afforestation and reforestation, have been in practice for decades but offer temporary sequestration. In contrast, medium to high durability methods, such as direct air carbon capture and sequestration (DACCS) and biomass with carbon removal and storage (BiCRS), are emerging technologies promising long-term sequestration.

Direct Air Carbon Capture and Sequestration: DACCS involves capturing CO2 directly from the atmosphere and storing it underground or in long-lived products. This method is highly durable, with the potential to permanently remove CO2 from the atmosphere. However, it is currently expensive and energy-intensive, requiring significant investment and technological advancements to scale.

Biomass with Carbon Removal and Storage (BiCRS): BiCRS leverages biomass to capture CO2 during growth. The biomass is then processed to produce energy, and the resultant CO2 is captured and stored. This method integrates carbon removal with energy production, offering a dual benefit. Yet, it necessitates careful management of biomass resources to avoid negative environmental impacts.

Challenges and opportunities

The primary challenge in scaling CDR technologies lies in the high costs and technical hurdles associated with durable methods. Additionally, there is a lack of consensus on the volume of residual emissions that need to be removed, leading to uncertainty in market projections and investment strategies. To overcome these challenges, sustained research and development (R&D) investments, coupled with supportive policy frameworks, are crucial. Public-private partnerships can play a pivotal role in advancing CDR technologies, bringing together the expertise and resources needed to innovate and scale these solutions.

Several countries and organizations are already making strides in CDR. For example, the United States has launched initiatives to support DACCS through grants and partnerships. In Europe, the European Union’s Innovation Fund is investing in large-scale carbon removal projects. Private companies are also contributing, with firms like Climeworks and Carbon Engineering pioneering DACCS technology. These efforts highlight the potential for collaborative approaches to accelerate CDR deployment.

The path forward

Achieving global net zero emissions by 2050 is a challenge that requires comprehensive strategies encompassing both carbon abatement and removal. While CDR technologies are still in their infancy, their role in addressing residual emissions is undeniable. By fostering a conducive policy environment and encouraging innovation through investments and collaborations, the world can scale CDR solutions to meet the climate crisis head-on. The path to a sustainable future hinges on our ability to integrate these cutting-edge technologies into a broader decarbonization strategy, ensuring a livable planet for future generations.