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With its Industrial Carbon Management Strategy, the European Commission has defined an initial framework for the future promotion of CO2 capture, storage and use in the EU. In particular, negative emission technologies like direct air capture promise to play a key long-term role on the path towards a climate-neutral Europe. However, timely capacity building requires an early technology uptake, which is currently impeded by various market obstacles, including learning externalities, coordination failure and the lack of a stable revenue perspective. Under these conditions, clear priorities and support measures are needed to create a genuine internal market for CO2. A successful strategy should be based on three pillars: the promotion of negative emissions via carbon-contracts-for-difference, standards and coordination devices for the EU-wide development of a carbon infrastructure as well as the establishment of technology partnerships at the global level.
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With its Industrial Carbon Management Strategy, the European Commission has defined an initial framework for the future promotion of CO2 capture, storage and use in the EU. In particular, negative emission technologies like direct air capture promise to play a key long-term role on the path towards a climate-neutral Europe. However, timely capacity building requires an early technology uptake, which is currently impeded by various market obstacles, including learning externalities, coordination failure and the lack of a stable revenue perspective. Under these conditions, clear priorities and support measures are needed to create a genuine internal market for CO2. A successful strategy should be based on three pillars: the promotion of negative emissions via carbon-contracts-for-difference, standards and coordination devices for the EU-wide development of a carbon infrastructure as well as the establishment of technology partnerships at the global level.

Wirtschaftsdienst

This work is licensed under the Creative Commons Attribution 4.0 International License.

Auf dem Weg zum CO-Binnenmarkt: Vorrang für Negativemissionen

With its Industrial Carbon Management Strategy, the European Commission has defined an initial framework for the future promotion of CO2 capture, storage and...

On the Way To an Internal Market for CO,: Priority to Negative Emissions

Published Online: May 21, 2024

Page range: 310 - 313

DOI: https://doi.org/10.2478/wd-2024-0085

© 2024 André Wolf, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.