To achieve climate neutrality and move towards net-negative emissions, Europe must rapidly scale up permanent carbon dioxide removals (CDR). However, there is still not enough demand, which remains a key barrier for large-scale deployment of these technologies. To address this gap, DG CLIMA is exploring the design of an EU-wide purchasing programme for permanent CDR to encourage investment, boost technological progress and help meet EU climate targets.

In this context, DG CLIMA has published three reports written by Ramboll Management Consulting
and Ecologic Institute.

• The first report, An EU Purchasing Programme for Permanent Carbon Removals: Assessment of Policy Options and Recommendations for Short-term Policy Design looks at different options for purchasing CDR at EU level. It explores the potential role of an EU-wide purchasing programme and how it could create demand for permanent CDR in the short term (2025-2030). It recommends that a programme should not only buy removal credits but also help grow the market by strategically purchasing various types of removal credits.

 This approach encourages technological development and market efficiency. It suggests using a mix of funding sources, including the EU budget, contributions from Member States and private funding, and connecting with existing initiatives like the Innovation Fund to streamline processes and enhance attractiveness.

The report also draws on insights from the recent workshop Perspectives on a Purchasing Programme for CRCF Permanent Carbon Removal Credits
held on 21 May, where stakeholders discussed investment motivations for CDR and prerequisites for an effective EU initiative.

Two additional reports take a closer look at Europe’s current CDR landscape and funding needs.

• Carbon Removals in the EU: Review of Current Carbon Removal Projects and Early-stage Financing provides a comprehensive overview of the current state and future potential of permanent CDR in Europe, assessing technologies, costs, funding needs, and deployment barriers while mapping existing and planned projects up to 2035.

• Carbon Removals in the EU: Assessment of Existing EU Funding Programmes and New Funding Models to Increase Carbon Removal Supply
reviews EU programmes such as Innovation Fund or Horizon Europe that support CDR companies and explores innovative funding models to strengthen early-stage CDR projects.