Brussels, 25 February 2025 – The European Commission released its Clean Industrial Deal (CID) today, outlining its strategy to combine climate and competitiveness in one overarching growth plan. While the CID acknowledges the importance of creating a business case for permanent carbon removal, it falls short in proposing concrete deployment incentives for the sector.
The CID recognizes the urgent need to build a business case for permanent carbon dioxide removal (CDR) to compensate for residual emissions from hard-to-abate sectors. However, its focus on emissions trading system (ETS) integration limits the ability for a wide portfolio of removals to come forward in the EU. This exclusive focus on long-term compliance neglects the need for near-term interventions to support early CDR deployment and get innovative projects off the ground.
The CID stresses the need for certainty and predictability in industrial policy. Yet, by mainly focusing on ETS integration, it fails to provide the necessary support for CDR. This threatens both the EU’s climate goals and its economic opportunity to unlock a €220 billion annual market and 670,000 high-quality jobs in Europe.
“We welcome the CID’s explicit recognition of the need to build a business case for permanent CDR, but without direct support for carbon removal, the EU risks falling behind the US, Canada, and Switzerland,” said Rodica Avornic, Policy Director at Carbon Gap. “Several upcoming initiatives under the Clean Industrial Deal must be leveraged to achieve effective CDR scale-up and ensure Europe’s competitiveness.”
To strengthen EU support for CDR, Carbon Gap suggests leveraging initiatives such as procurement, the Industrial Decarbonisation Accelerator Act, the Industrial Decarbonisation Bank, Important Projects of Common European Interest (IPCEI), tax incentives, and competitiveness funding. Additionally, at least €2.6 billion is needed in the next EU funding cycle to support research, development, and innovation for CDR.
With the US stepping back from its climate ambitions, the EU has an opportunity to assume global leadership by putting CDR on the path to success. The implementation of the Clean Industrial Deal is a crucial opportunity to act now and unlock the potential of CDR. By 2050, CDR could create 670,000 high-quality jobs, drive innovation, and solidify Europe’s position as a global leader in the clean economy.
Carbon Gap is an independent, philanthropically funded non-profit organization focused on rapidly and responsibly scaling up carbon dioxide removal in Europe. Envisioning a CDR Strategy for Europe, Carbon Gap emphasizes the need for separate targets for emission reductions and carbon removals, as well as the integration of carbon removals into the EU ETS.
For more information, please visit Carbon Gap’s website or contact their communications team at clotilde@carbongap.org or lydia@carbongap.org.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.