The consensus is clear: we cannot scale to the gigatons of Carbon Dioxide Removal (CDR) needed to limit global warming without strong policies and standards. What counts as high-quality CDR? How should companies think about CDR in the context of their net-zero strategies? We saw significant progress on these questions in 2024. In this year-in-review, we provide key milestones relating to carbon removal policies and standards, highlighting the increasing role of governments in shaping the carbon removal market.
February
The University of Oxford releases its revised Principles for Net Zero Aligned Carbon Offsetting, calling for companies to start buying high-durability CDR today, with removals reaching 100% of credit purchases by the global net zero date (2050 at latest).
The European Commission releases its proposal for a 2040 climate target, including a 90% net emissions reduction, which would require up to 75 megatons of permanent CDR.
March
The U.S. federal government announces the Voluntary CDR Purchase Challenge, encouraging corporates to match the USD 35 million Department of Energy commitment to purchase CDR (with a total of USD 70 million matching so far from Google and Meta).
April
The Government of Japan announces its intention to accept international CDR credits as part of its GX-ETS, an emissions trading system which will transition from a voluntary to a compliance scheme in 2026.
May
Climeworks becomes the first DAC company to receive third-party certification under the Puro Standard.
The U.S. federal government announces 24 semi-finalists, including Climeworks, for the CDR Purchase Pilot Program.
The UK government releases its proposal for the integration of CDR into the UK Emissions Trading System (ETS), with potential for integration as early as 2028.
The U.S. federal government releases Principles for High-Integrity Voluntary Carbon Markets, signaling its support in advancing carbon markets, including by acting as a buyer of carbon credits.
June
The Integrity Council for the Voluntary Carbon Market (ICVCM) announces first high-integrity Core Carbon Principle (CCP)-approved carbon credits under its integrity framework.
The government of Canada’s Carbon Capture, Utilization and Storage (CCUS) Investment Tax Credit becomes law, with up to 60% of CapEx covered for DAC+S projects[CO1] .
The government of Denmark announces a €9.5 billion (DKK10 billion) subsidy scheme for biochar production and storage until 2045.
August
BeZero assigns the market’s first AAA rating to Climeworks for its Orca plant in Iceland; of the nearly 500 projects rated by BeZero, fewer than 50 have received A, AA, or AAA ratings.
The Swedish Energy Agency opens BECCS reverse auction, with a total of €3.1 billion (SEK36 billion) of subsidies to be distributed from 2026–2046.
September
The Science Based Targets Initiative (SBTi) examines the role for permanent CDR in its revision of the Corporate Net-Zero Standard, reflecting the need for near-term CDR targets in addition to the existing requirement to neutralize residual emissions in the net-zero target year.
October
The government of Canada commits to purchase USD 7 million (CAD 10 million) of permanent CDR through the Low-carbon Fuel Procurement Program, an initiative to reduce emissions from federal air and marine operations.
November
The EU adopts Carbon Removals and Carbon Farming Framework (CRCF), setting the foundation for an EU regulatory framework on carbon removals.
The Parties to the Paris Agreement reach agreement on Article 6 at COP29 in Baku, including approval of a carbon removal standard under Article 6.4.
U.S. Senators Michael Bennet and Lisa Murkowski introduce the bipartisan CDR Investment Act, a tax credit for CDR in the U.S. at USD 250 per ton of CO2.
CORSIA, aviation’s compliance market, approves first CDR methodologies for use under the current phase, with expansions expected for further methodologies in 2025.
ICVCM approves the first CCP-eligible CDR program and methodology, with additional programs and methodologies expected in 2025.
Looking forward to 2025
The Science Based Targets Initiative’s (SBTi) draft Corporate Net-Zero Standard 2.0 is expected to be published in Q1 2025, including anticipated requirements that companies secure permanent CDR in the near-term.
The final Greenhouse Gas Protocol Land Sector and Removals Guidance is to be released at the start of 2025, providing clarity for corporate accounting of CDR.
The EU to consider a policy proposal for an interim 2040 target to reduce net greenhouse gas emissions by 90% by 2040 compared to 1990 levels, which may for the first time include separate targets for emissions reductions and CDR.
Switzerland to open funding applications as part of the Climate and Innovation Act, which will allocate €1.3 billion (CHF 1.2 billion) over 6 years for up to a 50% subsidy for permanent CDR.
The government of Canada to seek feedback on CDR’s role in achieving a clean and sustainable economy.
Further CDR methodologies are expected to be approved as ICVCM Core Carbon Principles (CCP) - Approved and CORSIA eligible during 2025-assessment cycles.