EU advances Carbon Removals Buyers' Club and CBAM rules; ETS integration and NGO challenges; industrial giants urge easing; imminent ETS reform with central purchasing proposal
Key Questions
What is the EU Carbon Removals Buyers' Club and its current status?
A discussion paper outlines the design for an EU Buyers' Club to drive durable CDR demand. It forms part of broader policy efforts including CBAM rules and potential ETS integration of removals.
How does the new CBAM draft impact carbon removal obligations?
The draft allows a 10% Article 6 cap where foreign carbon costs can reduce obligations and extends certificates, with Germany reforms favoring permanent DAC plus storage. This could influence international credit integration from 2036 onward.
What challenges and pressures face the EU ETS reforms for CDR?
NGOs are challenging the EU CRCF potentially tightening standards, while industrial giants urge easing carbon market rules, creating political pressure that may weaken ETS compliance incentives for DAC and CDR. Green industrialists and unions oppose easing, leaving outcomes uncertain.
What key proposal is expected in the upcoming EU ETS reform?
An imminent proposal includes options for central purchasing of CDR, which could catalyze demand despite price mismatches between allowances at $70-90 and DAC costs in the hundreds. Details are due Friday.
What new program has Puro.earth launched related to EU policies?
Puro.earth has launched an EU-recognized biochar program amid ETS 2026 reforms that tighten supply and ongoing discussions around integrating international credits.
Discussion paper on EU Buyers' Club design for durable CDR demand. New CBAM draft with 10% Article 6 cap allows foreign carbon costs to reduce obligations; extends certs/Germany reforms favoring permanent DAC+storage. NGOs challenge EU CRCF, potentially tightening standards. Study proposes EU ETS integration of international credits from 2036, which could lower prices. Puro.earth launches EU-recognized biochar program. EU ETS 2026 reforms tighten supply. However, European industrial giants are now urging EU to ease carbon market rules, creating political pressure that could weaken ETS and reduce compliance incentive for DAC/CDR. Green industrialists and unions oppose easing, outcome uncertain. Most critically, an imminent EU ETS reform proposal includes options for central purchasing of CDR, which could be a demand catalyst. Price mismatch between allowances ($70-90) and DAC costs (hundreds) remains a key risk. Must watch Friday's proposal details.