In a research report that has been recently published by Carbonfuture, The 2025 Guide to Carbon Removal Policy, Sebastian Manhart has outlined the most significant CDR policies that have been enacted in various countries in a detailed manner. In doing so, he has examined the significance of these policies for corporations that purchase CDR credits and companies that engage in CDR.
Key takeaways from the report:
- CDR has gradually enjoyed more robust recognition as one of the most essential tools for achieving net zero at the global level by 2050.
- That said, bold steps should be taken for achieving this goal by 2050.
- In addition, only a small portion of the amount of the CDR that needs to be removed meets the strict durability threshold that will guarantee that the carbon removed remains stored for a period exceeding a couple of centuries or more.
- In the US, at the federal level, CDR-related ambiguities capture widespread attention. That said, steps are being taken to make progress in an accelerated manner in many other countries and in US states.
- Most notably, the developments that have taken place in Europe are auspicious. Indeed, in Europe the establishment of a CDR compliance market is imminent and individual member states are taking bold actions, pioneering the CDR sector.
- In the US, CDR policy is characterized by a changing landscape due to the cessation of CDR funding, termination of the employment of civil employees, tax incentives and the growing role of the states in shaping CDR policy.
- In the EU, the CDR policy is shaped by the introduction of standards, studies concerning the incorporation of CDR to the EU Emission Trading Scheme, legislative activities at the member state level and financial investments made by member states for CDR.
- Importantly, the steps that should be taken to ensure that the CDR sector grows should not be limited to certain governmental terms. Therefore, countries should not amend their CDR-related policies in an imminent manner and take note of the evolution they are observing globally: CDR is a significant tool both for countering climate change and the production of financial value.
- CDR buyers should take further steps towards purchasing CDR credits by focusing on credits that possess durability and high quality in order to comply with legislations that will enter into force and gradually impact their operations.
- CDR suppliers can find policies that can facilitate their operations for almost any CDR method globally. The recommendations included in this report can be useful for them for choosing an appropriate jurisdiction and shaping their expansion goals with the help of legislators.
Read the full report here: