Industry needs removals to work
Permanent carbon removals can
Give European industry more options to operate within the ETS cap – including a de facto cap on the price of carbon and market liquidity
Provide strategic European industries (e.g. agro business, engineering, mining, CCS) growth and revenue opportunities and help transition businesses and regions away from oil & gas
Create a permanent removals industry to serve a multi-billion euro global market
Mainstreaming carbon removals in EU law
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Emissions Trading System
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.
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EU Climate Law
The EU Climate Law should be strengthened to support both climate neutrality by 2050 and the growth of a competitive permanent carbon dioxide removal industry. This means setting a 90% net emissions reduction target for 2040, alongside separate targets for gross emissions reductions, permanent CDR and LULUCF, backed by a broader support package beyond ETS integration. It should also include strong safeguards for any international credits and support a portfolio of permanent CDR methods to ensure consistency across EU policies.
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Green Claims Directive
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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![Making a short-term EU purchasing programme work for CDR]()
Making a short-term EU purchasing programme work for CDR
The EU should scale permanent carbon dioxide removal by 2030 through near-term support, including an EU Buyers’ Club, results-based payments for verified removals, and a pathway from a €1 billion pilot in 2026 to longer-term support through the Industrial Decarbonisation Bank. It should also make CDR visible in key EU funding instruments, support large-scale R&D through FP10, and secure long-term funding to strengthen competitiveness, jobs and climate goals.
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![CDR in the Multiannual Financial Budget]()
CDR in the Multiannual Financial Budget
The EU budget will help decide which net-zero technologies scale in Europe, but carbon dioxide removal is still not clearly included in funding priorities. To protect competitiveness, jobs and climate goals, the EU should make CDR eligible in key funding instruments, support large-scale R&D through FP10, and secure long-term funding as negotiations move forward.
