The ETS needs removals to work

The Negative Emissions Platform (NEP) calls for the integration of permanent carbon dioxide removals (CDR) into the EU Emissions Trading System (ETS) through a phased approach. This would support the EU’s path to net-zero by creating long-term demand and revenue certainty for the CDR sector, while maintaining the environmental integrity of the ETS. NEP proposes starting with public funding and intermediary-led procurement, followed by gradual integration of certified permanent CDRs without increasing the ETS cap. The paper stresses the need for separate targets for CDR in EU climate law, alignment with the CRCF, and safeguards to ensure only high-integrity, permanent removals are eligible

AND THE 2040 CLIMATE TARGETS

EU Climate Law Position Pape sets out the Negative Emissions Platform’s recommendations for strengthening the EU Climate Law revision so Europe can reach climate neutrality by 2050 while enabling a competitive permanent carbon dioxide removal (CDR) industry to invest and scale. It calls for a 90% net emissions reduction target by 2040, separate targets for gross emissions reductions, permanent CDR and LULUCF, and a holistic package of support measures beyond ETS integration. The paper also urges robust safeguards for any use of international credits and a portfolio approach to permanent CDR methods, aligned with the CRCF, to avoid narrowing support to only a few technologies and to ensure policy coherence across EU instruments.
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The Green Claims Directive proposed by the European Commission is crucial for combating greenwashing and promoting investment in permanent carbon removal. This directive would require companies to substantiate and communicate their environmental claims, including guidelines on using carbon credits.

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