Yesterday, five European carbon removal trade associations came together to publish a joint statement in support of integrating permanent carbon dioxide removal (CDR) into the EU ETS. The signatories are the European Negative Emissions Platform, together with its French (AFEN), German (Deutscher Verband für negative Emissionen e.V. (DVNE)), Italian (Rete Italiana Rimozione Carbonio (RIRC)) and Nordic Carbon Removal Association (NCRA) counterparts.
The Commission’s ETS reform proposal, published on 17 July, proposes to integrate up to 250 million tonnes of permanent carbon removal into the EU ETS between 2031 and 2040 – a first for the EU’s main compliance market.
CDR is both a climate necessity for Europe and an industrial opportunity: it lets the EU build a strategic industry now – generating economic benefits and jobs on its territory – rather than see it develop elsewhere. Together, the five signatories represent more than 170 companies active in carbon removal across Europe and beyond, which need clear demand signals to build the supply that the EU will need to meet its climate targets.
European carbon removal trade associations unite behind CDR integration
European trade associations welcome the Commission’s proposal as a central demand signal for CDR. To make sure that signal delivers, the statement sets out four concrete asks:
- make the 250 million tonnes of CDR a binding target, not just an allowance ceiling;
- close the price gap between ETS allowances and the cost of CDR, through more dedicated allowances, CDR eligibility for Carbon Contracts for Difference under the Industrial Decarbonisation Bank, and explicit inclusion in Member States’ earmarked decarbonisation investments;
- launch early offtake agreements, no later than 2029, to give projects visibility today;
- open the door to direct CDR purchases by ETS operators, alongside the centralised purchase mechanism.
How AFEN supports the French ecosystem
France has the potential to be a key CDR player in Europe, with a market worth up to €50 billion a year and up to 130,000 jobs by 2050, built on the country’s agricultural, forestry, maritime and low-carbon electricity assets. AFEN carries the voice of over fifty companies across the spectrum of CDR approaches – from nature-based to technology-based – and across the CDR value chain, including supply, financing, certification, and infrastructure. All of those need clear regulatory and demand signals to move forward.
AFEN aligns with its European partners while pushing for one specific point: broadening the portfolio of eligible methodologies. The Commission’s proposal limits initial integration to biogenic carbon carbon capture and storage (BioCCS) and direct air capture and storage (DACCS). AFEN is asking to open the integration to all permanent removal methodologies certified under the European Carbon Removal Carbon Farming (CRCF) framework, which today also include biochar, and could include other methods in the future. Waiting for the review clause set for 2034 is a horizon too distant for many project developers. As specified in the commission’s proposal, the purchasing mechanisms should guarantee a portfolio of approaches are effectively purchased.
European Parliament’s ETS rapporteur’s draft report shows strong support for CDR
Just published, the draft report tabled by Peter Liese, the European Parliament’s rapporteur for the ETS reform, moves in this direction:
- it adds biochar carbon removal (BCR) as a third eligible methodology alongside BioCCS and DACCS, capped at 20% of dedicated allowances, to diversify the portfolio without slowing the development of the other two pathways.
- brings the integration timeline forward to 2029, from 2031 in the initial proposal, and secures the actual purchase of the 250 million tonnes of CDR regardless of market prices.
What happens next?
This reform is a pivotal moment for the CDR sector as a whole, and the joint statement and the rapporteur’s draft report both show real momentum.
What happens next will decide whether the announced volumes are actually delivered – without diluting the price signal the ETS needs to keep driving emissions reductions. The text now moves through committee and plenary votes in the European Parliament, while the Council, under the Irish presidency, is aiming for a common position in December. A trilogue agreement could follow as early as the first quarter of 2027.
That is what AFEN, alongside its European partners, will keep pushing for in the negotiations ahead.
