Necessary inclusion of carbon dioxide removal in the NZIA

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Position paper · December 2023

The Negative Emissions Platform (NEP) is a Brussels-based partnership of European and international organisations focused on carbon removals. Our members are primarily technology companies, but also include project developers, investors, carbon marketplaces, and buyers of carbon removals. We provide a forum in which diverse like-minded organisations actively collaborate to improve political and public recognition of carbon removals.

Achieving net-zero requires carbon dioxide removals. NEP calls on co-legislators to maintain the European Parliament’s position in including carbon dioxide removals in the list of key net-zero technologies.

What is carbon dioxide removal?

Carbon dioxide removal (CDR) is a family of approaches which removes CO₂ from the atmosphere and durably stores it in geological, terrestrial, or ocean reservoirs, or in products.

Examples of highly durable and permanent CDR include:

  • Direct Air Capture and Storage (DACS)

  • Bioenergy with Carbon Capture and Storage (BECCS)

  • Biochar Carbon Removal (BCR)

  • Biomass with Carbon Removal and Storage (BiCRS)

  • Enhanced Rock Weathering (ERW)

  • Ocean CDR

  • Permanent storage in materials and products

Why is it a net-zero technology?

In its recent assessment, the IPCC stressed that achieving net zero requires CDR. While reducing emissions is a priority, actively removing hard-to-abate and historical emissions is essential for the EU and the world to reach net-zero targets.

The IPCC specifies a need to remove at least 10 billion tonnes annually by 2050 for global net zero. Currently, we remove only 2 billion tonnes, with 0.1% coming from durable CDR methods.

CDR therefore plays a distinct but crucial role in the fight against the climate crisis. To get to the scale needed, the EU needs to start acting now to begin growing the CDR sector. To delay action would undermine the EU’s net zero climate objectives.

Economic opportunity with CDR

The EU faces the risk of lagging behind other global counterparts in supporting the large-scale deployment of CDR technologies. The US’ Inflation Reduction Act has attracted multiple European CDR companies to invest and scale up their activities in the country, taking advantage of the favourable incentives provided.

This not only represents a significant economic opportunity missed by the EU but also threatens its standing as a technological and environmental frontrunner. The NZIA would play a crucial role in bolstering the adoption of CDR technologies within Europe.

How can the sector benefit from the NZIA

The majority of the CDR sector is comprised of SMEs facing distinct challenges in business development. Lengthy permitting processes and lack of access to finance have posed significant barriers to the adoption of their technologies, despite demonstrating their effectiveness and beneficial outcomes. Including CDR in the list of net-zero technologies will expedite the permitting process and simplify access to financing and investments.

For the CDR sector to effectively support net zero goals, the workforce in this sector must grow substantially compared to its current size. This growth will eventually lead to a skills gap, necessitating support through education and training. Net-Zero Industry Academies would ensure a steady supply of qualified talent to meet the needs of the expanding CDR sector.

Amendment: European Parliament’s amendment, Article 3A

The net-zero technologies within the scope of this Regulation shall be: […]

(d) carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O), removal, capture, transport, injection (EPP), storage and utilisation technologies; […]