Paper Launch – Bridging the CDR funding gap: design options and policy choices
November 25 @ 15:00 - 16:30
This is a hybrid event. Important! Online participation is only allowed for attendees located outside Brussels.
This paper presents findings on how the European Union can accelerate the deployment of permanent carbon dioxide removal (CDR) solutions through the design of effective funding mechanisms. The presentation will begin with a summary of the paper’s key results, including an analysis of the current landscape of CDR financing in the EU. While CDR is increasingly recognized as a strategic tool for achieving climate neutrality by 2050, the research demonstrates that existing funding frameworks remain fragmented and difficult to navigate.
The paper explores several key mechanisms for advancing CDR deployment, including the potential of a public purchasing programme for permanent carbon removal credits, the design and application of Carbon Contracts for Difference (CCfDs), and the role of complementary mechanisms such as competitive tenders and voluntary markets. The analysis examines the advantages, risks, and trade-offs of each approach, providing evidence-based recommendations on policy choices that can ensure high-quality, verifiable removals while mobilizing both public and private investment.
The paper concludes by outlining actionable pathways for the EU to establish leadership in developing and scaling robust CDR solutions as an integral component of its climate neutrality strategy.
