Achieving net-zero emissions is essential for meeting the Paris Agreement targets, and carbon removal technologies like Bioenergy with Carbon Capture and Storage (BECCS) and Air Capture with Carbon Storage (DACCS) will play a crucial role in offsetting hard-to-abate emissions.
While these technologies are critical for removing CO₂ from the atmosphere, they currently face limited incentives and financial support. Current EU policies, including the Net Zero Industry Act (NZIA) and Carbon Removals and Carbon Farming Certification Regulation (CRCF), acknowledge the need for carbon removal, but lack clear mechanisms to finance and implement these solutions at scale.
This paper examines the barriers to BECCS and DACCS deployment, including high costs, infrastructure limitations, and regulatory uncertainties. It also explores five funding models that could accelerate adoption: state support, quota obligations, emissions trading integration, international trade in carbon removals, and voluntary markets
By establishing a strong regulatory and financial framework, the EU can position itself as a global leader in carbon removal technologies while ensuring that these solutions are economically viable and environmentally sustainable
