Carbon Dioxide Removal
We conduct research on carbon removals and advocate for an effective framework in Europe
We use evidence-based research on Carbon Dioxide Removal (CDR) and our expertise in the EU Emissions Trading System (ETS) to ensure CDRs are incentivised properly and help, rather than hinder, the EU on its path to climate neutrality and beyond.
Carbon removals and the EU’s climate ambitions
Carbon Dioxide Removal (CDR) activities remove CO2 already present in the atmosphere, as opposed to emissions avoidance by preventing emissions at their source.
The role CDR should play in achieving Europe’s climate ambitions is the subject of intense debate. The European Commission is currently finalising 2040 climate targets and preparing a report to the Parliament and Council on the possible inclusion of negative emissions in emissions trading in the EU.
In this context, our work currently focuses on exploring whether there could be a role for CDR in the future of the EU ETS and, if not, what policy framework would be most suitable to drive the development of CDR.
Our work
Conducting research
We conduct quantitative analysis on the EU ETS and research into CDR technologies to understand the possible impacts of integration of CDR into the EU ETS, and make data-driven and evidence-based recommendations.
Advocacy campaigns
We leverage the results of our research to lead advocacy campaigns:
- Pushing for robust Monitoring, Reporting and Verification (MRV) in the Carbon Removals and Carbon Farming (CRCF) regulation to ensure full lifecycle emissions of CDR activities in the EU are captured.
- Participating in the CO2ol Down project, discussing and co-creating a common vision of carbon removals in the EU.
- Signing a joint letter calling for separate emissions reductions and permanent CDR targets in the EU 2040 climate framework.
Latest publications on CDR
Our messages
CDR is not currently appropriate for the ETS
Market mechanisms are only good for mature technologies. Methods of CDRs which could deliver permanent removals are simply not ready yet.
Even if these technologies were more developed, including them in the EU ETS prematurely could disincentivise emissions reductions and disrupt the market’s functioning.
Therefore, CDR is neither necessary nor desirable for the ETS’s good functioning until 2040.
Public investment is needed for CDR
For now, CDR technologies need other incentives that would trigger investment in early-stage technology or joint infrastructure.
A public investment vehicle could make initial investments in projects and take ownership of future CDR units to be generated after 2040.
Never say never for CDR and the ETS
Eventually, CDR will be needed to achieve carbon neutrality and net negative in the EU
Integration of CDR into the ETS around 2040 could help stabilise the carbon market and ensure alignment with these goals.
Read our analysis and policy recommendations
Simulating CDR in the EU ETS: The Risks of Premature Integration
The EU’s 2040 climate targets suggest integrating carbon removals into the ETS — but at what cost? This report uses Sandbag’s simulator to assess whether the risks of premature CDR integration outweigh the benefits.
In or Out: What’s best for carbon removals and the EU ETS?
What will the future of the EU Emissions Trading System (ETS) look like as the emissions cap heads towards zero? Is integrating carbon dioxide removals (CDRs) into the ETS a solution to help the EU achieve its climate goals? Or would they compromise the integrity and functioning of the system? These questions are at the forefront of the Commission’s mind as they review different options for the future of the ETS ahead of the 2026 revision.
Joint letter calling for separate emissions reductions and permanent CDR targets in EU 2040 climate framework
Sandbag co-signed an open letter sent to the European Commission by 114 leading academics,...
Get involved
Efforts are ongoing to make sure CDR is driven effectively to achieve climate neutrality and beyond.
