EU advances Carbon Removals Buyers' Club and CBAM rules
Key Questions
What is the proposed EU Carbon Removals Buyers' Club?
The EU is exploring a coordinated Buyers' Club to structure durable CDR demand through shared purchasing commitments. A recent discussion paper outlines design options and trade-offs for implementation.
How does the new CBAM draft affect foreign carbon costs?
The draft allows foreign carbon costs to reduce import obligations, with a 10% cap on Article 6 credits from January 2026. It also extends recognition of EU certificates and German reforms.
What implications does CBAM have for permanent DAC and storage?
CBAM rules may favor permanent DAC plus storage pathways by recognizing verified removals. This creates potential demand signals for high-quality engineered CDR projects.
How could a CDR Buyers' Club close the EU demand gap?
A Buyers' Club would aggregate corporate commitments to purchase verified removals, helping bridge the gap between current supply and EU climate targets. It promotes standardized offtake and price transparency.
What is the 'like-for-like' approach in carbon dioxide removal?
The like-for-like approach requires that residual emissions be matched with equivalent permanent removals rather than avoidance credits. It supports greater use of durable CDR to achieve net-zero goals.
Discussion paper on design options/trade-offs for EU Carbon Removals Buyers' Club to structure durable CDR demand. New CBAM draft allows foreign carbon costs to reduce obligations with 10% Article 6 cap from Jan 2026, extending EU certs, Germany reforms and implications for permanent DAC+storage pathways.