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, along with its French (AFEN), German (German Association for Negative Emissions e.V. (DVNE)), Italian (Italian Carbon Removal Network (RIRC)) and Nordic Carbon Removal Association (NCRA) counterparts.
The Commission’s ETS Reform Proposal, published on July 17, proposes to integrate up to 250 million metric tons 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 imperative for Europe and an industrial opportunity: it allows the EU to build a strategic industry now – generating economic benefits and jobs within its territory – rather than let 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 the EU will need to meet its climate targets.
European carbon removal trade associations unite in support of CDR integration
European trade associations welcome the Commission’s proposal as a key signal of demand for CDR. To ensure that this signal is effective, the statement outlines four specific requests:
- make the 250 million metric tons of CDR a binding target, not just a cap on the allowance;
- close the price gap between ETS allowances and the cost of carbon dioxide removal (CDR), through more targeted allowances, CDR eligibility for Carbon Contracts for Difference under the Industrial Decarbonization Bank, and explicit inclusion in Member States’ earmarked decarbonization investments;
- early launch offtake agreements, no later than 2029, to provide visibility for projects today;
- open the door to direct CDR purchases by ETS operators, in addition to the centralized purchasing mechanism.
How AFEN Supports the French Ecosystem
France has the potential to be a key player in the CDR sector 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 represents the interests of over fifty companies across the full range of CDR approaches—from nature-based to technology-based—and across the CDR value chain, including supply, financing, certification, and infrastructure. All of these require clear regulatory and demand signals to move forward.
AFEN aligns with its European partners while pushing for one specific goal: expanding the range of eligible methodologies. The Commission’s proposal limits initial integration to biogenic carbon capture and storage (BioCCS) and direct air capture and storage (DACCS). AFEN is asking to open the integration to all permanent carbon removal methodologies certified under the European Carbon Removal and Carbon Farming (CRCF) framework, which today also include biochar, and could include other methods in the future. Waiting for the review clause scheduled for 2034 is too far off for many project developers. As specified in the commission’s proposal, the procurement mechanisms should ensure that a diverse range of approaches is effectively procured.
The draft report by the European Parliament’s ETS rapporteur shows strong support for CDR
Just published, the draft report A proposal put forward 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 ensures the actual purchase of 250 million metric tons of CDR regardless of market prices.
What happens next?
This reform marks a pivotal moment for the CDR sector as a whole, and both the joint statement and the rapporteur’s draft report demonstrate real momentum.
What happens next will determine whether the announced volumes are actually delivered—without diluting the price signal the ETS needs to continue driving emissions reductions. The text will now go through committee and plenary votes in the European Parliament, while the Council, under the Irish presidency, is aiming to reach a common position in December. A trilogue agreement could follow as early as the first quarter of 2027.
That is what AFEN, together with its European partners, will continue to advocate for in the upcoming negotiations.
