Date

Inclusion of Carbon Dioxide Removals in Selected ETS: State of Play

Cover Image
icap-thematic-brief_cdr-in-selected-etss_cover.jpg
Background image with wood grain for publication cover images.

Category

Release date

Release date

Language

Publication languages
English
Main Download
Paragraphs
Content

Including carbon dioxide removals (CDR) in emissions trading systems (ETSs) is gaining policy attention. Potential benefits include additional compliance flexibility and incentives for CDR deployment. Key concerns center on environmental integrity, reversals, and maintaining effective decarbonization pathways. Some ETSs already have years of experience with the inclusion of removals, and the increasing attention to this topic makes a review of current practices and experiences particularly timely. This Thematic Brief surveys current practices across selected ETSs and compiles comparative tables on: eligibility and geography, relationship to ETS scope, legal tender, and quantitative limits; and reversal/permanence provisions (liability, buffer pools, discounting, monitoring periods, tonne‑year variants). It also notes ongoing policy discussions, including the UK’s plan to integrate engineered CDR (BECCS, DACCS) into the UK ETS from 2029 and work on potential permanent CDR integration in the EU ETS.