List of tables
Summary
Zusammenfassung
1 Introduction
2 The use of certified carbon removal units
2.1 Possible ways of using carbon removal units and certificates
2.2 Removals in the EU NDC as the overall GHG emission reduction target
2.3 Compliance use under the EU regulations governing the target architecture: Emission Trading, Effort Sharing Regulation and LULUCF Regulation
2.3.1 Emission Trading Scheme
2.3.1.1 Introduction
2.3.1.2 Options for integrating carbon removal units in the EU ETS
2.3.2 LULUCF Regulation
2.3.3 Effort Sharing Regulation
2.4 Compliance use to meet separate differentiated removal targets
2.5 Compliance use under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)
2.6 Compliance use under other national or sub-national laws
2.6.1 Compliance use for carbon taxes
2.6.2 Removal credits for permitting?
2.6.3 EU Fuel Quality Directive
2.7 Voluntary use for offsetting by companies, institutions, jurisdictions, or individuals
2.8 Voluntary use for contribution claims
2.9 Use as vehicle to disburse subsidies or provide incentives
2.10 Conclusions
3 Funding carbon removals: activity and result-based incentives
3.1 Overview of existing incentive mechanisms for carbon removals
3.1.1 Policy targets – The U.S. Department of Energy’s Carbon Negative Shot Initiative
3.1.2 Production tax credit – The U.S. tax code section 45Q – credit for carbon oxide sequestration
3.1.3 Investment tax credit – Canada investment tax credit for carbon capture, utilization, and storage
3.1.4 Reverse Auctions – Swedish scheme for BECCS
3.1.5 Policy exemptions – Swiss agreement with managers of waste treatment installations
3.1.6 Private impact investment – Apple’s Restore Fund for carbon removal
3.1.7 Private impact investment via contribution claims – Milkywire’s Climate Transformation Fund
3.1.8 Advance market commitments – Stripe Climate and Frontier
3.2 Conclusions
4 Interlinkages between CRCF implementation and existing national funding instruments – Germany as a case study
4.1 Challenges for national funding instruments for carbon removals
4.1.1 Additionality
4.1.2 Baselines
4.1.3 Double counting
4.1.4 Visibility in GHG inventories
4.2 Potential interlinkages between CRCF and national funding instruments
4.2.1 Provisions of the CRCF
4.2.2 Attribution
4.2.3 Interlinkages with national market-based mechanisms
4.2.4 Case study: demonstration for financial additionality in the Label Bas-Carbon
4.3 Existing relevant national funding instruments and their financial capacities
4.4 Conclusions
4.4.1 Conclusions on financial capacities of existing funding instruments and interlinkages with the implementation of the CRCF
4.4.2 Conclusions on the role of German governments
5 List of references