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Carbon Dioxide Removal:

Best-Practice Guidelines

WHITE PAPER

JANUARY 2024

What Companies Can Learn from First Movers

Contents

Images: Unsplash, Getty Images

No part of this publication may be reproduced or

transmitted in any form or by any means, including

photocopying and recording, or by any information

storage and retrieval system.

Disclaimer

This document is published by the

World Economic Forum as a contribution to a

project, insight area or interaction. The ﬁndings,

interpretations and conclusions expressed herein

are a result of a collaborative process facilitated and

endorsed by the World Economic Forum but whose

results do not necessarily represent the views of

the World Economic Forum, nor the entirety of its

Members, Partners or other stakeholders.

Preface

Executive summary

1 Overview of the challenge

1.1 Why carbon removal is essential to achieving the Paris goal

1.2 Status of carbon removal technologies

1.3 Purpose of this report

2 The engineered CDR landscape

2.1 Carbon removal technologies available in the market

2.2 Quality features of engineered CDR

3 Why engage in engineered CDR now?

3.1 It’s good for corporate climate strategy

3.2 It provides business opportunities

3.3 Leadership is essential – ‘wait and see’ is not an option

3.4 Engineered CDR brings co-beneﬁts, too

3.5 A mix of natural-climate solutions and engineered CDR is

needed

4 How to access the nascent market for engineered CDR

4.1 How to secure the budget

4.2 Choosing the right market access model

4.3 Communicating CDR performance in-house and outside

the company

Conclusion

Appendix

Contributors

Endnotes

Carbon Dioxide Removal: Best-Practice Guidelines 2

Preface

So far in 2023, the average global temperature on

one-third of days has been at least 1.5°C higher

than pre-industrial levels.1 At the end of October,

scientists warned that within just ﬁve or six years,

humanity would exceed the remaining carbon

budget required for an evens chance of keeping

warming to 1.5°C.2 Yet despite repeated warnings

and the commitment of 195 nations in Paris in

2015 to reverse this unfolding climate catastrophe,

greenhouse gas emissions continue to rise, not fall.

Decarbonizing the global economy is the primary

and most critical challenge. But hot on its heels is

an equally pressing priority: to accelerate the rate

at which we are removing excess carbon dioxide

from the atmosphere. Even if every country and

every company achieves net zero by 2050, it won’t

be enough. We will need to keep removing CO2 for

decades afterwards – to reverse the accumulation

of historic emissions, to balance out the hardest-

to-abate emissions and to safeguard us against

Earth’s own feedback loops from a warmer world.

The scale of the challenge is, for want of a better

word, mind-blowing. Up to 687 billion tonnes of

CO2 will need removing by the end of the century

– with around 10 billion tonnes a year required

by 2050.3 Currently we are removing around 2

billion tonnes of CO2 a year through natural climate

solutions such as afforestation. But we can’t just

rely on trees, soils and oceans to do our dirty work

for us – not least because wildﬁres and degradation

risk releasing the carbon captured by nature.

New solutions are needed urgently – technologies

that can deliver additional, permanent and

quantiﬁable impacts at the speed and scale required

to make a difference. This white paper examines the

promising potential of several of these “engineered”

carbon dioxide removal (CDR) technologies,

including biochar, bioenergy with carbon capture

and storage (BECCS), direct air capture with carbon

storage (DACCS) and enhanced rock weathering

(ERW). Each solution aims to clear the high bar of

the World Economic Forum’s First Movers Coalition

(FMC) – to demonstrate it can capture and store

carbon at scale and with high durability.

The FMC leverages the collective purchasing power

of companies to send a clear demand signal to

scale up emerging decarbonization technologies

that are critical to the net-zero transition. By

stimulating sufﬁcient demand, the FMC aims to

help accelerate the commercialization of these

technologies and ultimately drive down their cost.

Members of the FMC have committed to contract

for at least 50,000 tonnes – or $25 million worth

– of durable and scalable CDR by 2030. We need

more corporate leaders such as these to step

up right now and demonstrate demand to the

pioneers of engineered CDR, so they can gain the

conﬁdence and lines of credit needed to invest in

these potentially life-saving technologies.

We have interviewed eight FMC members from

different industry sectors to gain their insights into

why it’s so important to start now, why “wait and

see” is not an option, and how best to navigate

through this nascent market. This paper charts their

experience and calls on every company to make

advance purchases of engineered CDR as part of

their wider climate strategy.

Nasim Pour

Lead, Carbon Removals

and Market Innovation,

World Economic Forum

Carbon Dioxide Removal:

Best-Practice Guidelines

January 2024

Carbon Dioxide Removal: Best-Practice Guidelines 3

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WhatCompaniesCanLearnfromFirstMoversCarbonDioxideRemoval:Best-PracticeGuidelinesWHITEPAPERJANUARY2024Images:Unsplash,GettyImagesContentsPreface3Executivesummary41Overviewofthechallenge61.1WhycarbonremovalisessentialtoachievingtheParisgoal61.2Statusofcarbonremovaltechnologies81.3Purposeofthisreport82TheengineeredCDRlandscape92.1Carbonremovaltechnologiesavailableinthemarket92.2QualityfeaturesofengineeredCDR123WhyengageinengineeredCDRnow?143.1It’sgoodforcorporateclimatestrategy143.2Itprovidesbusinessopportunities153.3Leadershipisessential–‘waitandsee’isnotanoption173.4EngineeredCDRbringsco-benefits,too183.5Amixofnatural-climatesolutionsandengineeredCDRis19needed4HowtoaccessthenascentmarketforengineeredCDR214.1Howtosecurethebudget214.2Choosingtherightmarketaccessmodel244.3CommunicatingCDRperformancein-houseandoutside26thecompanyConclusion28Appendix29Contributors30Endnotes31DisclaimerThisdocumentispublishedbytheWorldEconomicForumasacontributiontoaproject,insightareaorinteraction.Thefindings,interpretationsandconclusionsexpressedhereinarearesultofacollaborativeprocessfacilitatedandendorsedbytheWorldEconomicForumbutwhoseresultsdonotnecessarilyrepresenttheviewsoftheWorldEconomicForum,northeentiretyofitsMembers,Partnersorotherstakeholders.©2024WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformationstorageandretrievalsystem.CarbonDioxideRemoval:Best-PracticeGuidelines2January2024CarbonDioxideRemoval:Best-PracticeGuidelinesPrefaceNasimPourLead,CarbonRemovalsandMarketInnovation,WorldEconomicForumSofarin2023,theaverageglobaltemperatureontomakeadifference.Thiswhitepaperexaminestheone-thirdofdayshasbeenatleast1.5°Chigherpromisingpotentialofseveralofthese“engineered”thanpre-industriallevels.1AttheendofOctober,carbondioxideremoval(CDR)technologies,scientistswarnedthatwithinjustfiveorsixyears,includingbiochar,bioenergywithcarboncapturehumanitywouldexceedtheremainingcarbonandstorage(BECCS),directaircapturewithcarbonbudgetrequiredforanevenschanceofkeepingstorage(DACCS)andenhancedrockweatheringwarmingto1.5°C.2Yetdespiterepeatedwarnings(ERW).Eachsolutionaimstoclearthehighbarofandthecommitmentof195nationsinParisintheWorldEconomicForum’sFirstMoversCoalition2015toreversethisunfoldingclimatecatastrophe,(FMC)–todemonstrateitcancaptureandstoregreenhousegasemissionscontinuetorise,notfall.carbonatscaleandwithhighdurability.DecarbonizingtheglobaleconomyistheprimaryTheFMCleveragesthecollectivepurchasingpowerandmostcriticalchallenge.Buthotonitsheelsisofcompaniestosendacleardemandsignaltoanequallypressingpriority:toacceleratetheratescaleupemergingdecarbonizationtechnologiesatwhichweareremovingexcesscarbondioxidethatarecriticaltothenet-zerotransition.Byfromtheatmosphere.Evenifeverycountryandstimulatingsufficientdemand,theFMCaimstoeverycompanyachievesnetzeroby2050,itwon’thelpacceleratethecommercializationofthesebeenough.WewillneedtokeepremovingCO2fortechnologiesandultimatelydrivedowntheircost.decadesafterwards–toreversetheaccumulationofhistoricemissions,tobalanceoutthehardest-MembersoftheFMChavecommittedtocontractto-abateemissionsandtosafeguardusagainstforatleast50,000tonnes–or$25millionworthEarth’sownfeedbackloopsfromawarmerworld.–ofdurableandscalableCDRby2030.WeneedmorecorporateleaderssuchasthesetostepThescaleofthechallengeis,forwantofabetteruprightnowanddemonstratedemandtotheword,mind-blowing.Upto687billiontonnesofpioneersofengineeredCDR,sotheycangaintheCO2willneedremovingbytheendofthecenturyconfidenceandlinesofcreditneededtoinvestin–witharound10billiontonnesayearrequiredthesepotentiallylife-savingtechnologies.by2050.3Currentlyweareremovingaround2billiontonnesofCO2ayearthroughnaturalclimateWehaveinterviewedeightFMCmembersfromsolutionssuchasafforestation.Butwecan’tjustdifferentindustrysectorstogaintheirinsightsintorelyontrees,soilsandoceanstodoourdirtyworkwhyit’ssoimportanttostartnow,why“waitandforus–notleastbecausewildfiresanddegradationsee”isnotanoption,andhowbesttonavigateriskreleasingthecarboncapturedbynature.throughthisnascentmarket.ThispaperchartstheirexperienceandcallsoneverycompanytomakeNewsolutionsareneededurgently–technologiesadvancepurchasesofengineeredCDRaspartofthatcandeliveradditional,permanentandtheirwiderclimatestrategy.quantifiableimpactsatthespeedandscalerequiredCarbonDioxideRemoval:Best-PracticeGuidelines3ExecutivesummaryIn2022,globalemissionswere2billiontonnesTheengineeredCDRlandscapemorethanin2015–a5%rise.YetachievingtheParisclimategoalsrequiresadeclineinemissionsofBiocharcarbonremoval(BCR):createscharcoal40–60%by2030.Decarbonizing90%oftheglobalwhenbiomassisheatedwithoutoxygen,enablingeconomyisthepriorityaccordingtotheSciencethecarboninthebiomasstoresistdecay.BiocharBasedTargetsinitiative.Theremaining10%willneedismoreaffordablethanotherengineeredCDRbutistocomefrom“negativeemissions”–capturingCO2limitedbytheavailabilityofsustainablebiomass.fromtheatmosphereandstoringitpermanently,knownascarbondioxideremoval(CDR).Bioenergywithcarboncaptureandstorage(BECCS):burnssustainablebiomasstoproduceCDRisrequiredforthreereasons:1)tocompensatepowerandheatorprocessesbiomass.Theforthoselast10%of“hard-to-abate”emissions;2)resultingCO2isstrippedfromthefluegas,todrawdownEarth’sownemissionsfromnaturalcompressedandstoredpermanently.Carbonfeedbackloopsexacerbatedbyglobalwarmingcaptureisperformedbythebiomassthrough(e.g.forestfires);and3)toreversetheaccumulationphotosynthesis.ofhistoricemissions.By2050,globalemissionsmustreachnetzero,Directaircapturewithcarbonstorage(DACCS):whichmeansremovingupto10billiontonnes(orusesfilterstotrapCO2,whichiscompressedand“gigatonnes”,Gt)ofCO2fromtheatmosphereeverystoredunderground.Itusesasmalllandfootprintyear.Throughoutthesecondhalfofthecentury,andofferspermanentgeologicalstorage,butcostsglobalemissionshavetostaynet-negative(whereareveryhigh($600–$1,000/tonne),duetothecleanmoreCO2isremovedthanemitted).energyrequired.Thisreportisaimedatsustainabilityprofessionals.ItEnhancedrockweathering(ERW):involvesmakesthecaseforengineeredCDRsolutionsandspreadingforestsoils,croplandsandbeachespresentsguidelinesonhowtoenterthenascentwithmineralsthatdissolveinwaterandabsorbremovalsmarket.ItdrawsoninterviewswithCO2,bindingitforhundredsofyears.UncertaintymembersoftheFirstMoversCoalition(FMC),whoremainsaboutthecost,sideeffects,permanencehaveeachcommittedtocontractfor50,000tonnesandscalability.–or$25millionworth–ofdurable,scalablecarbonremovalby2030.CarbonDioxideRemoval:Best-PracticeGuidelines4Toremove10GtofCO2ayearby2050requiresKeepoverallcostofremovalsdown:investingrampingupallsolutions,whetherengineeredorinengineeredCDRnowwillmakeitlessexpensivenature-based.Successdependsonintegrityinthelongterm,whereasfavouringcheaper(deliveringanadditional,permanentandNCStodaywilldepletenature-basedsolutions,quantifiableimpact)andscalability(fastenoughincreasingtheirprice.tomakeadifference).EngineeredCDRscoreshighlyonintegrity.DACCSHowtoaccessthenascentandBECCSareclearlyadditionalsincethemarketforengineeredCDRtechnologyisdedicatedtoremovalsandwouldnotexistotherwise.BothcanstorecarbonundergroundSecurethebudgetwithaninternalcarbonprice:formillennia,whereasnaturalclimatesolutionsSeveralFMCmembershavesetaninternalcarbon(NCS)riskreleasingcarbonthroughforestfiresorpricebasedonwhattheyarepreparedtopaydegradation.EngineeredCDRsolutions,executedforthedurationoftheCDRengagementperiod.inindustrialinstallations,aresimplertoquantify.Disclosedpricesrangefrom$80to$200/tCO2by2030.Thisstrategyhasadvantages:itremovestheCurrentCDRtotals2GtCO2/yr,ofwhich99.9%uncertaintyofannualbudgetrequests;transparencycomesfromNCS(e.g.afforestation,reforestation).onpricesendsacleardemandsignaltoCDRWhileonly0.1%resultsfromengineeredCDR,itdevelopers;itallowsthecompanytoenterlong-termhasmorepotentialtoscaleup,becausethespaceofftakeagreements;and,importantly,thehigherrequiredforNCSislimitedbyotherlanduses.theinternalcarbonprice,themoreacompanywillTheUnitedNationsestimatesthatthemitigationprioritizeemissionreductionsoverCDR.OtherFMCpotentialofengineeredCDRby2050couldtotalmembershavesetagoalthatcombinesatarget62GtCO2/yr,comparedto33GtCO2/yrforNCS.budgetandvolumeofremovalsperyear.ThemainconstrainttoscalingupengineeredCDRisthehighcost,whichiswhereprivate-sectorChoosetherightmarketaccessmodel:leadershaveanimportantroletoplay.Whyshouldacompanyengage–Directdeal-makingwithCDRdevelopers:inengineeredCDRnow?allowsbuyerstonegotiatetheexactcontractterms,butcomeswithsubstantialtransactionalCorporateclimatestrategy:engineeredCDR’seffort.Suitedtolargecompanieswithbigofftakequalityandscalabilityofferscompaniesgreatervolumeslookingtobuildin-housecompetencycertaintyinmeetingclimatetargetsandmakingandrelationshipswithstrategicpartners.credibleclaimsforoffsettingresidualemissions.TakingaleadinengineeredCDRcanprotect–Buyers’club:aggregatesdemandfromcompaniesfromaccusationsofgreenwashing,individualbuyersintoamanagedportfolioofwhileimprovingreputationandcompetitiveedge.engineeredCDR.MemberssignonecontractwiththeintermediaryandsecurediversifiedBusinessopportunities:companiescanuseremovalsatcompetitiveprices.SuitableforexistingexpertisetodevelopnewCDR-relatedcompaniessourcingsmallervolumesthroughbusinessmodels,includinginfrastructurelong-termofftakes.development,equipmentmanufacturing,plantoperations,consultingortradingCDRcertificates–Over-the-counterpurchases:where(“removals”).engineeredCDRcertificatesaretradedamongsuppliers,brokersandbuyers.PricespertonneCo-benefits:cancontributetoajusttransition.areoftenfixedandcarryheavyoverheads,butExistingfossilfuelinfrastructure(e.g.depletedoiltransactionsarefast,low-effortandflexible.andgasfields,pipelines,industrialclusters)canberepurposedforengineeredCDR,preventing–Consultants:forcompanieswithlimitedredundanciesorleadingtonewjobs.experienceofCDR,whocanseeksupportfromaspecialistconsultanttoprovidetechnicalLeadership:theworldcannotaffordto“waitandsee”adviceonaccessroutesandhelpbuildaifnewCDRtechnologieswillfallinprice.Developersmeaningfulstrategy.ofengineeredCDRneedearlyadopterswithofftakeagreementsthatguaranteefuturerevenue,enablingCommunicationstrategy:Thepaperpresentsdeveloperstoraisemoneytoscaleup.examplesofhowFMCmembershavecommunicatedtheirCDRactionsin-houseandexternally,underliningtheimportanceofseekingthebroadestbuy-in.CarbonDioxideRemoval:Best-PracticeGuidelines51OverviewofthechallengeNetzeroby2050isnotthefinaldestination.Thereafter,globalemissionswillneedtobecomenet-negative–andcarbonremovalsoffertheonlypathwaytothatgoal.1.1WhycarbonremovalisessentialtoachievingtheParisgoalBy2050,nearlyThespeedatwhichtheplanetiswarmingiscurrentlyof1.5ºCdependsuponsomedegreeofCDR.8Thisgreaterthanthespeedatwhichtheglobaleconomyprocessisalsoknownas“negativeemissions”and10billiontonnesofCO2mayisreducingitsemissions.SinceDecember2015–theittakestheworldbeyondnetzerotoapointwherehavetoberemoveddatewhen195nationssignedthelegallybindingParismoreCO2needstoberemovedthanisbeingemitted.fromtheatmosphereAgreementtopursue“effortstolimitthetemperatureincreaseto1.5°Cabovepre-industriallevels”4–netThepredictedvolumesofCDRthatwillbeneededareannuallygreenhousegasemissionshavenotfallenbutrisen,eye-watering.EvenforthetwomoremoderateIPCCdespiteaCOVID-19-inducedblip.Lastyear,totalscenarios,cumulativecarboncaptureandstorageestimatedemissionswerenearly2billiontonnesmore(CCS)intherealmof348–687billiontonneswillbethanin2015–anincreaseofroughly5%.5neededbytheendofthecentury.9By2050,nearly10billiontonnesofCO2mayhavetoberemovedfromAccordingtotheUnitedNations(UN)theatmosphereannually,accordingtothemedianIntergovernmentalPanelonClimateChangeestimatesofseveraloftheIPCC’snet-zeroscenarios.10(IPCC),achievingthegoalenvisionedintheParisagreementwillrequireadeclineinglobalnetCDRisrequiredforthreereasons:anthropogenicCO2emissionsof40–60%by2030(comparedto2010),enroutetonetzeroby–Tocompensatefor“hard-to-abate”emissions2050.6Toachievethis2030targetmeansreducing(thelast10%inSBTi’sCorporateNet-Zeroemissionsbythepandemic-levelequivalentofa7%Standard)necessarytodeliverauthenticnetzerodropeveryyear(seeFigure1).–TodrawdowntheEarth’sownemissionsDecarbonizingthewayhumanitylives,travels,resultingfromthenaturalfeedbackloopsofamakesthingsandconsumesthemisthetopwarmingplanet,suchasforestfiresormethanepriority.AccordingtotheScienceBasedTargetsescapingfrommeltingpermafrostinitiative(SBTi),companiesneedtoreducetheabsoluteemissionsoftheirvaluechainsbyatleast–Toreversetheaccumulationofhistoricemissions90%.Remainingemissionsmustberemovedor“neutralized”throughpermanentcarbondioxideThislastcaseissignificant.Since1990,theyearremoval(CDR),notthroughconventionalcarbonwhentheIPCCpublisheditsfirstreport,humanityavoidancecertificates.AsperSBTi’sCorporatehasemittedmoregreenhousegasesthaninallNet-ZeroStandard,“acompanyisonlyconsideredrecordedhistorybeforethatdate.11Tobegintotohavereachednet-zerowhenithasachieveditsrestoretheclimate,theseaccumulatedemissionslong-termscience-basedtargetandneutralizedanyneedtoberemoved–permanently.Thatmeansresidualemissions”.7netzeroby2050isnotthefinaldestination.Frommid-centuryonwards,globalemissionswillneedEachofthefour“modelpathways”presentedbytobecomenet-negative–andCDRofferstheonlytheIPCCinits2018specialreportGlobalWarmingpathwaytothatgoal(seeFigure2).Since1990,humanityhasemittedmoregreenhousegasesthaninallrecordedhistorybeforethatdate.InstituteforEuropeanEnvironmentalPolicyCarbonDioxideRemoval:Best-PracticeGuidelines6Figures1and2summarizewhatneedstohappentoachievetheParisAgreementgoals:–Halveemissionsby2030–Net-zeroemissionsby2050–Net-negativeemissionsafter2050FIGURE1TheemissionstrajectoryneededtodeliverthegoalsoftheParisAgreementGlobalgreenhousegasemissionsCOVID-19(billiontonnesCO2eperyear)~7%Fallof2008-2009UnmitigatedtheUSSRﬁnancialcrisistrajectory160-2%-1%SecondSecondWorldWaroilcrisis-7%-4%30USGreatCOVID19-levelNDC2030targetsreductions(-7%)(2.4ºCpath)2Depressioneveryyear-13%2.0ºCpath3-50%1.5ºCpath4Paris2050Agreementby2030forgoals51.5ºC019501975200020251925Notes:1.AssumesGHGemissionsreboundandgrowfrom2020atthesamerateasthecurrentpoliciesscenarioinUNEP2019Gapreportto2050(1.1%CAGR);2.AssumescountriesdecarbonizefurtheratthesameraterequiredtoachievetheirNationallyDeterminedContribution(NDC)between2020and2030;3.Assumes25%reductionby2030andnetzeroby2070;4.Assumes45%reductionby2030andnetzeroby2050;5.ParisAgreementgoalsaretolimitglobalwarmingto2.0°C,preferably1.5°C.Figuresexcludelanduse,land-usechangesandforestry.Source:WorldEconomicForum12FIGURE2Beyondnetzero–negativeemissionsrequiredthroughcarbonremovalsGlobalgreenhousegasemissions(billiontonnesCO2eperyear)40MassiveBusiness-as-usualemissionsemissionreductionsNet-emissionspathtolimitglobalwarmingto1.5°CResidualgrossemissions20thatcannotyetbereducedNet-zeroemissions0Net-negativeemissionsNegativeemissionsrequiredto:–Balancehard-to-reduceemissions-20–Reversethebuild-upofhistoricemissions2010–BalanceEarth’sownemissions(e.g.forestﬁres)202020302040205020602070Medianestimateof10billiontonnesCO2e/yrtoberemovedandstoredAfter2050Carbonremoval=nexttrillion-dollarindustryNote:Differentemissionsscenariosrequiredifferentquantitiesofcarbondioxideremovalbasedontimingandquantityofgrossemissionsreductions.Source:WorldEconomicForum131.2StatusofcarbonremovaltechnologiesToday,CDRisstillinitsinfancy.Fewcompaniessoils–areusedtocaptureandstoreatmospherichavesuccessfullyengagedwithitandthereareCO2.Today,thesetechnologiesarebarelymanyroadblocksforthosethathavebegunthedeveloped,despitetheexpectationthattheywillprocess.Thecurrentfocusisonnaturalclimatedeliverthemajorityofthecarbonremovalcapacitysolutions(NCS)toremovecarbonsincetheytheworldneedsoverthelongrun.areaffordableandreadytouse.ItisinherentlyimportanttosupportNCS,owingtotheirco-Thus,notonlyareemissionreductionsabenefits,suchastobiodiversity,ecosystemgargantuantaskthatallowsnofurtherdelaysbutservices,naturalcatastropheresilienceandsoon.sotooisthebuild-upofacarbonremovalindustrycapableofdeliveringenoughnegativeemissionsatTheotherfamilyofcarbonremovalsolutionsisscaleandontime.TobealignedtoglobalclimatecalledengineeredCDR(ortechnologicalCDR),goals,acompany’sclimatestrategyneedstowhereengineeringtools–insteadofplantsandaddressbothsidesofthechallengeimmediately.1.3PurposeofthisreportThisreportisforsustainabilityprofessionalswhoarelegitimatequestionssuchas:WhyentertheintheprocessofaddingCDRtotheircompanies’engineeredCDRmarketwhenthetechnologiesareclimatestrategy.Itmakesthecaseparticularlyforsounproven?WhynotwaitandseeifthepricesengineeredCDRsolutionsandseekstolowerthecomedownbeforecommitting?entrybarrierstothenascentremovalsmarket.ThisreportinvolvedinterviewingeightleadingThereportshareslessonslearnedbymembersofmembersoftheFMCthathavecommittedtothetheWorldEconomicForum’sFirstMoversCoalitioncoalition’sCDRtarget:tocontractforeither50,000(FMCandprovidesbest-practiceguidelinesfortonnes–oratleast$25millionworthof–durable,companieslookingtoentertheengineeredcarbonscalablenetcarbonremovalbytheendof2030removalspace.Manycompaniesareasking(seeBox1).BOX1FMCcommitmenttocarbondioxideremoval“MemberscommittocontractfordurableandTheFMC’scriteriafor“durableandscalable”arescalablenetcarbondioxideremovaltobesolutionsthatdemonstrablystorecapturedcarbonachievedbytheendof2030,inadditiontotheirfor1,000yearsandsolutionsthatcanpotentiallymaximaldirectemissionreductionefforts.storeatleast1milliontonnes(Mt)ofcarbonby2030and1billiontonnes(Gt)by2050.Membersmaychoosetocontractforatleast50,000tonnesofdurableandscalablenetcarbonSource:WorldEconomicForum,FirstMoversCoalition14dioxideremovalstobeachievedbytheendof2030,orasanalternativemaychoosetocontractforatleast$25millionofdurableandscalablenetcarbondioxideremovalstobeachievedbytheendof2030.”Thiswhitepaperisorganizedasfollows:Part4providesinsightsfromFMCmembersregardinghowtoaccessthemarketforengineeredPart1providesanoverviewofthecarbonremovalCDR,includingsecuringthebudget,choosingachallenge.marketaccessmodelandcommunicatingCDRactionsin-houseandexternally.Part2providesanintroductiontoengineeredCDRanditsnascentmarket.TheAppendixoutlinesthequestionseachintervieweecompanywasaskedduringresearchforPart3focusesonwhycompaniesshouldengageinthisreport.engineeredCDRnowandprovidesargumentsthatinterviewedFMCmembershavebroughtforwardtomakethecasetotheirdecision-makers.CarbonDioxideRemoval:Best-PracticeGuidelines82TheengineeredCDRlandscapeEngineeredCDRtechnologiesarestillunderdeveloped,despitetheirqualityfeatures.Investinginthemnowcanhelpensuretheyareavailableatscaleandontime.2.1CarbonremovaltechnologiesavailableinthemarketIntheIEA’sMethodstoremovecarbondioxidefromtheTheresultingCO2isstrippedfromthefluegasnetzeroby2050planet’satmospherearetypicallydividedintoNCS15usingtechnologydevelopedforcarboncaptureatscenario,DACCSandengineeredCDR.largepointsources(e.g.post-combustion,pre-needstocapturecombustionoroxyfuel).Theeffectivenessofthealmost60MtEngineeredCDRsolutionsincludebiochar,carbonremovalreliesontwoseparateprocesses.CO2/yrby2030.bioenergywithcarboncaptureandstorageFirst,theamountofcarbonsequesteredby(BECCS),directaircapturewithcarbonstoragethebiomassduringitsorganicgrowththrough(DACCS)andenhancedweathering.DataoncostphotosynthesismustexceedtheamountofCO2pertonneandmitigationpotentialinthissectionareemittedthroughplantingit,harvestingitandalllong-termestimatesfor2050,sourcedfromthetransportingittotheBECCSfacility.Second,IPCC’s2022SixthAssessmentReport.16thecapturedCO2mustbestoredpermanently;forexample,bycompressingandpumpingBiocharcarbonremoval(BCR):basedonatypeofitdeepundergroundintogeologicalstoragecharcoalcreatedwhenbiomassfromcropresidues,formations(porousrocklayersthataresealedgrass,treesorotherplantsiscombustedathighwithanimpermeablecaprock)orintodepletedoiltemperatureswithoutoxygen.Thisprocess,knownreservoirs.OnenoteworthyBECCSusecaseisaspyrolysis,enablesthecarboninthebiomasstotoburnwaste(e.g.municipalsolidwaste).Inthisresistdecay.17Whenmixedwithexistingsoil,mostwaste-to-energyprocess,thebiogenicfractionofbiocharoptionsareexpectedtohaveadurabilityofthewastebeingburntresultsinnegativeemissionslessthan500years.18However,somerecentstudiesiftheCO2inthefluegasiscapturedandstored.suggestthatbiocharcouldlast1,000+years,ThemainadvantageofBECCSistherenewabledependingonthefeedstockandtemperatureofenergythatis“co-generated”whileproducingpyrolysisused.19Biocharalsoimprovessoilfertility.negativeemissions.MakingbiocharisamoreaffordableprocessTheIPCCestimatesthecostofBECCSat$15–thanotherengineeredCDRsolutions.TheIPCCestimatesthecostofbiocharat$10–$345per$400pertonneofCO2removed,withamitigationtonneofCO2removed,withamitigationpotentialpotentialof0.5–11GtCO2/yearby2050.23Asofof0.3–6.6GtCO2/yearby2050.20GivenitsrelativeSeptember2022,around2milliontonnes(Mt)ofaffordability,biocharcurrentlyrepresentsabout80%ofallengineeredremovals.21ItcanthereforebebiogenicCO2werebeingcapturedperyear.Inscaledupbothrapidlyandimmediately.22Itsremovalthenetzeroemissionsby2050scenarioofthepotential,however,islimitedbytheavailabilityofsustainablebiomass(typicallycropandforestryInternationalEnergyAgency(IEA),BECCSneedstoresidues),forwhichtherearecompetinguses.capturearound250MtCO2/yrby2030.MomentumBioenergywithcarboncaptureandstorageisbuilding,however,withplansannouncedformore(BECCS):atechnologythatburnsbiomasstocreateenergyorprocessesittoproducebiofuel.than50newBECCSfacilitieswithacombinedcapacityofaround20MtCO2/yr,accordingtotheIEA.24Asisthecasewithbiochar,thelimitedavailabilityofsustainablebiomasswilleventuallycurtailBECCS’removalpotential.CarbonDioxideRemoval:Best-PracticeGuidelines9AspartofitsEnhancedrockweathering(ERW):mimicstheTheIPCCestimatesthatthecostofDACCSwillInflationReductionnaturalCO2cyclewheremineralsslowlydissolvefallby2050toaround$100–$300pertonneofAct,theUSinsurfacewaters,whichallowsthesewaterstoCO2removed,withamitigationpotentialof5–40governmentoffersabsorbmoreatmosphericCO2andbinditforGtCO2/year.26Today,however,thecostisfarataxcreditof$180hundredsofyearsifleftundisturbed.Mineralsthathigher,causedmainlybythelargeamountofcleanforeverytonnenaturallyabsorbcarbondioxide,suchasduniteenergyusedinitsairfilters.DatafromtheBostonofpermanentlyorbasalt,aregroundupandspreadacrossforestConsultingGroup(BCG)publishedinJune2023storedCO2.soils,croplandandbeaches.AtmosphericCO2andsuggeststheend-to-endcostofCO2removalwaterreactwiththesefinelygroundsilicaterocksusingdirectaircaptureincludingfinalstorageistoformbicarbonateionsthatthenprecipitateinbetween$600and$1,000pertonnetoday.BCGsoilsanddrainagewatersassolidcarbonatesorbelievesthatreducingthecostsofDACCStoremaindissolvedandincreasealkalinitylevelsin$150–$200pertonneby2050ispossible,butthistheoceanwhenthewaterreachesthesea.Thiswouldrequire“amassivestepupininvestments,engineeredprocessacceleratesthenaturalcapacitygovernmentsupport,collaborationmodelsandofmineralstosequestercarbonfromgeologictobroaderindustryengagement”.27humantimescalesandcanresultinpermanentsequestrationof1,000+years.ThescalabilityofDACCSisthereforelimitedbyitscost,whichisprimarilydrivenbythelargeamountUncertaintyremainsregardingcost,sideeffects,ofcleanenergyusedintheairfilters.Asaresult,durabilityandscalability.However,unlikeothertherearecurrentlyonly18directaircaptureplantsengineeredCDRoptions,ERWdoesnotrequireoperatingworldwide,capturingjust0.01MtCO2/yrnewinfrastructureortechnology.In2022,theIPCC–althougha1milliontonne/yrplantisinadvancedputthecostsofenhancedweatheringat$50–$200developmentintheUS.AccordingtoBCG,evenpertonneofCO2removed,withamitigationifcapacityweretoscaleupto100–400millionpotentialof2–4GtCO2/year.25tonnesofdeploymentperyear,thecostislikelytoremainataround$300–$400pertonne–unlessDirectaircapturewithcarbonstorage(DACCS):thetechnologyseesastepchangeindeploymentthistechnologyusesbanksoffanstopassrates,accesstolow-costcapital,supportiveambientairthroughphysicalorchemicalfiltersthatinfrastructureandenergypricesandactionsthatselectivelytraptheCO2molecules.AswithBECCS,acceleratecollaborativelearning.thecapturedCO2canthenbecompressedorstoredindeepgeologicalformationsforthousandsIntheIEA’snetzeroby2050scenario,DACCSofyears.ThebenefitsofDACCSasaCDRoptionneedstocapturealmost60MtCO2/yrby2030.includehighstoragepermanence(whenstored“Thislevelofdeploymentiswithinreach,butwillgeologically)andalimitedlandandwaterfootprint.requireseveralmorelarge-scaledemonstrationAlternatively,insteadofproducingnegativeplantstorefinethetechnologyandreducecaptureemissions,thecapturedCO2canbecombinedwithcosts,”notestheIEA.28hydrogentoproducesyntheticfuels.CarbonDioxideRemoval:Best-PracticeGuidelines10TomakeDACThechallengeofgettingDACCStoscaleissimilarcollaboration,ascurrently“companiesarecarryingcost-effective,tothechallengefacingBECCS.Ittakesmorethanoutdevelopmentwithinwalledgardenstoprotecttheindustrywilljustbuildingthedirectaircarboncaptureplant.Antheirintellectualproperty,”accordingtoBCG.AndneedtoscaleupentireinfrastructureisrequiredaroundtransportinggovernmentsneedtoframeafavourablepolicytoonegigatonnethecapturedCO2andstoringitunderground.environment(seeFigure3)–forexample,asaperyear,whichwillThisraisessomeimportantquestions:Towhatresultoflastyear’sInflationReductionAct,theUStake$200billionofextentisthewholesupplychainsupportingthesegovernmentoffersataxcreditof$180foreveryinvestment.innovations?WhowillbuildandoperatethetonneofpermanentlystoredCO2.infrastructurefortransportingandstoringtheCO2?Andwhoshouldpayforit?Asanindustryscalesup,capitalexpenditure(capex)andunitcoststypicallycomedown.Forexample,WhilerecentanalysisbyBCG29suggeststhatthethesuccessfulscalingupofthesolarindustryhashighcostsofDACcouldcomedownconsiderably,ledtoanimpressivefallinpricespermegawatthourpossiblytoaslittleas$100–$200pertonne,it(MWh)inrecentdecades.However,BCGargueswilltaketherightcombinationoffactors.StrongerthatthegasindustryisacloseranaloguetoDAC.demandsignalsareneededfrombuyerscommittingCapexcostsforgasturbineshavefallenby15%toadvancepurchases,whichinturnleadtoforeverydoublinginproductioncapacity.Tomakeacceleratedlevelsofdeployment.TechnologyDACcost-effective,theindustrywillneedtoscaledevelopersneedgreateraccesstolow-costuptoonegigatonneofannualcapacity,whichinrenewableenergyandaffordablecapital.Thereturnwilltakeabout$200billionofadditionalcapexalsoneedstobemoreknowledge-sharingandandoperatingexpenses(opex)investment.FIGURE3Threescenariostodrivedownthecostofdirectaircapture(DAC)Cost/tCO2DescriptionDACcapacity/yr100–400Mtpa$300–$400/tonneDACplayslimitedroleaspremiumcredit1,000–2,000Mtpainvoluntarymarket2,000–3,000Mtpa(policy-as-usual)Developmentenabledbyisolatedcasesofsupportivepolicyandphilanthropy<$200/tonneFavourablepolicyencouragesdeployment<$100/tonneLowcollaborationontechnologydevelopmentgivencompetitionbetweenplayersformarketshareFavourablepolicyencouragesdeploymentHighcollaborationenablesknowledgespillovereffectsSynergiesfromdedicatedlow-carboninfrastructurefurtherreducescostDACplaysasubstantialroleinthepathtonetzeroNote:Mtpa=milliontonnesperyear.Source:BostonConsultingGroup(BCG)CarbonDioxideRemoval:Best-PracticeGuidelines112.2QualityfeaturesofengineeredCDRTwooverarchingAsnotedearlier,accordingtotheIPCC,ataglobalIntegritycriteriawillscaleupto10billiontonnes(10Gt)ofcarbondeterminethedioxidemustberemovedfromtheatmosphereTheIntegrityCouncilfortheVoluntaryCarbonMarketsuccessofcarboneveryyearfrom2050.Toachievethatrequires(ICVCM)hasframed10CoreCarbonPrinciplesremovals:integrityrampingupallavailablesolutions,whetherNCSorthatdefinewhencarboncreditsare“high-integrity”,andscalability.engineeredCDR.underthreebroadheadings:governance,emissionsimpactandsustainabledevelopment(seeFigure4).Twooverarchingcriteriawilldeterminethesuccessofthisventure:integrityandscalability.AnyBelow,threeofICVCM’shigh-integritycarboncredithigh-integritycarbonremovalsolutionmustmakeprinciplesrelatedtoemissionsimpact–additionality,anadditional,permanentandquantifiableimpactpermanence/durabilityandquantification–areonreducingemissions.Itmustalsobecapableofexamined.TheseprincipleswillprovevitalinthescalingupatthespeedandvolumerequiredtoquesttocuttheamountofCO2intheatmospheremakeadifference.Thissectionlooksattherelativetolevelsconsistentwitha1.5–2.0°Cpathway.TheyadvantagesofengineeredCDRagainstsomeofarealsoareaswhereNCShavebeenchallengedinthesecriteria.recentyears.WhileNCSwillremainacriticaltooltotameclimatechange–aswellasofferingmultipleco-benefits–engineeredremovalsscoreparticularlyhighlyagainsttheseprinciples.TABLE1TheICVCM’sCoreCarbonPrinciples10CoreCarbonPrinciples–toensurecarboncreditsare“high-integrity”EffectivegovernanceHaveeffectiveprogrammegovernancetoensuretransparency,accountability,continuousimprovementandtheoverallqualityofcarboncredits.GovernanceTrackingOperateormakeuseofaregistrytouniquelyidentify,recordandtrackmitigationTransparencyactivitiesandcarboncreditsissuedtoensurecreditscanbeidentifiedsecurelyandunambiguously.Providecomprehensiveandtransparentinformationonallcreditedmitigationactivities.Theinformationshallbepubliclyavailableinelectronicformatandshallbeaccessibletonon-specializedaudiences,toenablescrutinyofmitigationactivities.VerificationHaveprogramme-levelrequirementsforrobustindependentthird-partyvalidationandverificationofmitigationactivities.AdditionalityGHGemissionreductionsorremovalsfromthemitigationactivityshallbeadditional,i.e.theywouldnothaveoccurredintheabsenceoftheincentivecreatedbycarboncreditrevenues.EmissionsimpactPermanenceGHGemissionreductionsorremovalsfromthemitigationactivityshallbepermanentQuantificationor,wherethereisariskofreversal,thereshallbemeasuresinplacetoaddressthoserisksandcompensatereversals.GHGemissionreductionsorremovalsfromthemitigationactivityshallberobustlyquantified,basedonconservativeapproaches,completenessandscientificmethods.SustainableNodoublecountingGHGemissionreductionsorremovalsfromthemitigationactivityshallnotbedoubledevelopmentcounted,i.e.,theyshallonlybecountedoncetowardsachievingmitigationtargetsorBenefitsandsafeguardsgoals.Doublecountingcoversdoubleissuance,doubleclaiminganddoubleuse.Contributiontonet-zeroHaveclearguidance,toolsandcomplianceprocedurestoensuremitigationactivitiestransitionconformwithorgobeyondwidelyestablishedindustrybestpracticesonsocialandenvironmentalsafeguardswhiledeliveringpositivesustainabledevelopmentimpacts.Mitigationactivityshallavoidlocking-inlevelsofGHGemissions,technologiesorcarbon-intensivepracticesthatareincompatiblewiththeobjectiveofachievingnetzeroGHGemissionsbymid-century.Source:IntegrityCouncilfortheVoluntaryCarbonMarket(ICVCM)30CarbonDioxideRemoval:Best-PracticeGuidelines12TheIPCC’sAdditionality:AccordingtoICVCM:“TheGHGengineeredCDRisthatfarlessphysicalspaceemissionreductionsorremovalsfromthemitigationisrequired.Inprinciple,thereisnolimittothetop-endestimatesactivityshallbeadditional,i.e.theywouldnothavescalabilityofengineeredsolutionssuchasDACCSoccurredintheabsenceoftheincentivecreatedwhenitcomestospace.However,thecurrentforthemitigationbycarboncreditrevenues.”Putanotherway,prohibitivelyhighcostofengineeredCDRisamajortheseemissionswouldnothavebeenreducedorhurdletoscalability.Therequirementforadditionalpotentialofremovedunlesstheprojecthadbeenimplemented.infrastructure(e.g.cleanenergy,pipelines,storageEngineeredsolutionssuchasDACCScaneasilysites,etc.)arealsosignificantconstraints.engineeredCDRbedefinedasadditional,sincethetechnologyisdedicatedsolelyforthepurposeofCDR.Top-endestimatesforthemitigationpotentialby2050total62GtofengineeredCDRby2050total62GtCO2/yr,Permanence/durability:Itisimportanttocomparedto33GtCO2/yrfornature-basedCO2/yr,comparedknowthatanycarboncapturedforthesakeofremovals.32Whileitistrickytopredictnear-termto33GtCO2/yrproducingnegativeemissionsislockedawayfordemandforengineeredCDRby2030,researchersfornature-basedtheforeseeablefuture.EngineeredsolutionsscoreatDartmouthCollegeintheUShaveestimatedveryhighlyondurability.Theyarenotpronetodemandforcertifiedtechnicalremovalsin2030removals.therisksofwildfiresordroughtsthatcanreverseatbetween31MtCO2and623MtCO2peryear,NCS–risksthatwillincreaseinawarmingworld.dependingontheadoptionbyvariouscomplianceCarboncapturedthroughengineeredCDR,eithermarkets.33directlyfromtheairusingDACCSorfromfluegasesusingBECCS,canbecompressedandstoredStandardsandcriteriaundergroundforcenturiestomillennia.OneofthemainchallengeswithengineeredCDRQuantification:Engineeredsolutionssuchasisthelackofmaturequalitystandards.Ina2022DACCSarecontainedwithinindustrialprocessesreportonDACpublishedbytheIEA,oneoftheandinstallationsthataremoreamenabletosixprioritiesfordirectaircapturedeploymentmeasurementandquantificationthanNCS.Whileisstandards:“Developinternationallyagreedthismaybesomethingofanoversimplification,itisapproachestoDACcertificationandaccounting.frequentlysaidthatwithengineeredCDRallthatisRobust,transparentandstandardisedinternationalneededisaflowmeter.certificationandaccountingmethodologiesforDACareneededtofacilitateitsrecognitionScalabilityincarbonmarketsandIPCCgreenhousegasinventoryreporting.”34Thecurrentscaleofcarbondioxideremovalsisnothinglikesufficient,consideringtheIPCC’sTheInternationalCarbonReductionandOffsetestimatethataround10GtCO2/yrwillbeneededAlliance(ICROA)offersanaccreditationprogramme,bymid-centuryandpossiblyevenmorethroughout“recognisedsince2008astheindustrystandardthesecondhalfofthecentury.AccordingtoTheforVCM[voluntarycarbonmarket]organisationsStateofCarbonDioxideRemoval,publishedinpromotingGHGemissionreductionsandoffsetting2023byateamofresearchersledbytheUniversitytothehigheststandardsofenvironmentalintegrity”.ofOxford,currentCDRtotals2GtCO2/yr,ofwhichICROApublishedversion2.1ofitsCodeofBest99.9%comesfromNCS,primarilyviaafforestationPracticeinJuly2023.35andreforestation.31Just0.1%resultsfromwhattheresearcherscall“novelCDRmethods”(e.g.DACCS,NextGen,abuyers’clubforcarbonremovals,BECCSandbiochar).TheauthorsnotethattherequiresallCDRprojectsfromwhichitlevelsofCDRrequiredinthesecondhalfofthispurchasescreditstogothroughanICROA-centurywillbefeasibleonlyiftherearesubstantialendorsedcertificationprocesstoprovideanewdeploymentsofnovelCDRinthenextdecade.degreeofindependentverificationandpublictransparencyonquality.NextGenisalsoworkingWhileNCSarelimitedbyotherlanduses(e.g.foodonmethodologiestosupportthethird-partyandfeedproduction,infrastructure,IndigenousverificationofengineeredCDR.ownership,etc.),animportantadvantageofCarbonDioxideRemoval:Best-PracticeGuidelines133WhyengageinengineeredCDRnow?Forsomecompanies,engineeredCDRsolutionsoffergreatercertaintyarounddeliveringonnetzero.Forothers,theycouldbecomeacorebusinessopportunity.Eitherway,theyareheretostay.Theoverarchingchallengefacingengineeredcarbon2030”.37Thearithmeticofthistargetacknowledgesremovaliscost.TheFMC36oftheWorldEconomicameancosttodayof$500pertonneofCDR.HowForumhassetaCDRtargetforitsmemberstoisitpossibletoconvincetheboardaboutsuchancontractforatleast50,000tonnes–oratleast$25apparentlycostlyengagement?Thischaptershedsmillionworth–of“durableandscalablenetcarbonlightonthemostpertinentargumentsinfavourofdioxideremovaltobeachievedbytheendofengaginginengineeredCDRnow.3.1It’sgoodforcorporateclimatestrategyEngineeredCDRprovidescompanieswiththeOneintervieweeputitthisway:“Carbonoffsettingcredible,scalablecarbonremovalsrequiredfornetissodifficulttomanageinthefaceofpublicopinionzero.Companiesthathavecommittedtonet-zerothatwe’relookingatwaystoavoidoffsettinggoalsneedareliableportfolioofcarbonremovalaltogether.”servicestodeliveronthe“net”innetzero.Asoutlinedintheprevioussection,engineeredCDRExpectationsregardingwhatcompaniescanandscoresparticularlyhighlyintermsofboththeintegritycannotclaiminrelationtocarboncertificatesandthescalabilityoftheunderlyingclimatechangearebecomingmorestringent.InJune2023,mitigationoutcome.WhileNCSremainavitaltooltheVoluntaryCarbonMarketsIntegrityInitiativeincombattingclimatechange–andareuniquely(VCMI)releaseditsClaimsCodeofPractice–avaluablegiventheirnature-positiveco-benefits–rulebookthatmovesthedebatefrom“offsets”toengineeredremovalsbringalevelofadditionalityand“contributionclaims”andstates:“carboncreditsdurabilitythatNCSfindhardtomatch.cannotbecountedtowardstheachievementofwithin-valuechainemissionreductiontargets,Accordingly,themostcompellingandwidelycitedbutinsteadrepresentacontributiontoboththeargumentforengineeredremovalsamongthecompany’sclimategoalsandglobaleffortstoFMCmembersinterviewedisthattheycanhelpmitigateclimatechange”.40protectagainstthepotentialintegrityshortcomingsfrequentlyassociatedwithNCS.Whenitcomestoscalability,companiesareworriedthat–duetoconstraintsonthelandareaavailableReputationalriskarisingfromnegativepublicityisforplantingtreesandothernature-basedsolutionsalsoagrowingconcern.Somecompaniesfacethe–theresimplywillnotbeenoughNCStogoround.allegationthattheyarehidingtheslowpaceoftheircarbonabatementbehindanet-zero“figleaf”.38“Thereisalimitationofsupplyinhigh-qualitynature-Othershaveencounteredlegalchallengestotheirbasedremovals,”saysKazuraKoda,Generalcarbonneutralityclaims,39plungingmanycompaniesManageroftheCarbonDeskforMitsuiO.S.K.Linesintouncertainty,inactionorattemptstohidetheir(MOL),aglobalshippingcompanybasedinJapan.participationincarbonmarkets(“greenhushing”).CarbonDioxideRemoval:Best-PracticeGuidelines14MOListargetingatotalof2.2milliontonnesofnetzeroandwecannotjustrelyonnaturalclimatecarbonremovalsby2030asapartofitsmitigationsolutions,thenwehavetosupportandscaleuptheactionsbeyondthevaluechain.“SoifwewanttoCDRmarket.”neutralizeouremissionsintheyearofachievingThereisalimitationofsupplyinhigh-qualitynature-basedremovals.Soifwewanttoneutralizeouremissionsintheyearofachievingnetzeroandwecannotjustrelyonnaturalclimatesolutions,thenwehavetosupportandscaleuptheCDRmarket.KazuraKoda,GeneralManageroftheCarbonDesk,MitsuiO.S.K.Lines(MOL)3.2ItprovidesbusinessopportunitiesEngineeredCDRofferscommercialopportunities.businessmodelsthateithersupportoraredirectlyThetechnology,oralinkinitsvaluechain,couldintegratedintothenewCDRvaluechain.becomepartofsomecompanies’day-to-daybusinessactivities.AnemergingindustrysuchasOneintervieweecharacterizedtheopportunityengineeredCDRthatcombineshighlyinnovativethisway:“Don’tjustwriteacheque.Lookattechnology,considerablecapitalriskandveryinvestmentsthatcomplementyourexistinglittlecommercialtrackrecordwillrequiremanybusinessprocessesandenvironment.Andthinkofdimensionsofexpertiseinfinancing,infrastructureyourreputationandaspirations,too–justwritingadevelopment,de-riskingandoperations.chequedoesn’tmakeyoualeader.”Thesizeofthepotentialpie–commentatorsoftenBelowaretheperspectivesoftwoglobalrefertoCDRbecomingthenexttrillion-dollarcompaniesthathavecommittedtoFMC’sCDRindustry–invitesallplayersintheeconomytostudytargetandarelookingtomakecarbonremovaltheCDRvaluechainandanticipatewheretoslicepartoftheircorebusiness.Eachstorybringsintoit.Putanotherway:theyarelookingatwhereauniqueangle,onefromtheviewpointofthetheycanusetheirexistingcorporateexpertiseandinternationalcommoditytrader,theotherfromaexpandtheirbusinessactivities,ordevelopnewglobalenergymajor.CarbonDioxideRemoval:Best-PracticeGuidelines15Perspective#1:TheinternationalcommoditytraderTrafiguraisamultinationalcommoditytradingwhoadds:“Tobridgetheworldsoftheprojectcompanythatisapproachingthecarbonremovalandtheinvestor,what’sneededisacombinationsectorfromtheperspectiveofdevelopingcarbonoftechnicalandpolicyunderstanding,priceriskassetslikeanyothernaturalresource.Hannahmanagementandwhat’seffectivelyventurecapitalHauman,GlobalHeadofCarbonTradingatfunding–that’sahugeaskforoneorganization.”Trafigura,explainstheopportunity:“TradingexiststosolvethenaturalmismatchbetweenproductionTodate,Trafigurahasdeployedhundredsofmillionsandconsumptionrequirements,beitphysicalofdollars“toscaleremovalsthatwouldn’totherwisecommoditiesorthecarbonbalance.Whereverthereexist”.Althoughcustomerswillnotneedthesearegapsandinefficienciesbetweensupplyandremovalsuntil2026–2027,“unlesswestartnow,demand,whetherit’srelatedtotime,technologyortheywon’tbeready,”saysHauman.Trafigura’spolicy,thereisvalueinclosingthosegaps.”aimisto“progressfromacarbonfinanceworlddrivenbyphilanthropytoacarbonaccountingTrafigura’saimistofusetheworldsoftheinstitutionalmarketfocusedonnet-zeroclaims”.Inturn,thisinvestorandthetechnologydevelopertocreatemeansreframingtheopportunitytobuyerstosuitabankableprojects.“There’sareasonthatcarbonprocurementstance,“wherebuyersknowwhattheydioxideremovaltodayisnotsuccessfullyscaling:wanttobuyandcanhavesuretyonthenumberofprojectsarenotyetseenasbankable,”saysHauman,tonnesdelivered,whenandatwhatprice”.Ouraimistoprogressfromacarbonfinanceworlddrivenbyphilanthropytoacarbonaccountingmarketfocusedonnet-zeroclaims.HannahHauman,GlobalHeadofCarbonTrading,TrafiguraOneofthemainlimitationsinattractingcapitalinitially,demonstratingperformance,theninvitingforcarbonremovalprojectsisthelackofatrackotherstogetinvolved–frombanksandinsurersrecord.Trafigura’sapproachisthereforetoworktoalternativeinvestmentfundsandpensionfunds.withadeveloperorprojectownertomaketheir“Incubatingandscalingisoneofthethingsthatweprojectbankable.Thismeansde-riskingtheprojectdobest,”saysHauman.financebytakingitontoTrafigura’sbalancesheetPerspective#2:TheglobalenergymajorTheAESCorporationisaFortune500energyBauteisevaluatingdevelopmentopportunitiescompanythataimstoleadtheindustryintheineverythingfromDACCSandBECCStootherresponsibletransitiontolow-carbonandzero-as-yet-unproventechnologies.“Ourinterestiscarbonsourcesofenergy.MichaelBaute,AES’sininfrastructuredevelopment–we’retalkingEntrepreneur-in-ResidenceforCarbonRemoval,megatonnesandbeyond,”saysBaute,“butuntilwebelievesthereisacriticalgapintheCDRsector.cansecureofftakeatlargevolumes,it’schallenging“I’mnotseeingtheprojectdeveloperatthetable,”tofindtheprojectfinanceforwhatwewanttodo.”hesays,adding:“Thequestionis:Who’sgoingtoowntheseassets?”BautewantstoleverageSohowcouldmoneyberaisedforthistypeofAES’sexpertiseasaprojectdevelopertosupportinfrastructure?“Capitalmarketsareansweringtheprojectmanagementandcommercializationofthecall,”saysBaute.“Theywanttoparticipate,butsector–raisingthefinance,securingofftakedeals,they’relookingforwaystode-risk.”Governmentacquiringland,securingpermits,sitemanagement,incentivesarecertainlyhelping,especiallyPresidentconsolidatingcommercialstandardsandscalingupBiden’sInflationReductionAct(IRA),signedintoCDRtechnologiesintoaviable,large-scaleindustry.lawinAugust2022.“Atthistime,theprojectsdon’tTechnologydeveloperscanthenfocusongettingthepencilwithoutthe45Q,”saysBaute,referringtothetechnologyworkingattherightpriceforthemarket.clauseintheIRAthatdealswithtaxcreditsforcarboncapture,utilizationandstorage.“Wealsoneedsupportforagreaterdegreeoftechagnosticism,beyondsimplyDACCSandBECCS,”headds.Let’sstartwith$150atonneby2040.Thatwon’tmateriallyimpactglobalGDP,butanythinghigherandwedon’tthinkit’llscale.MichaelBaute,Entrepreneur-in-ResidenceforCarbonRemoval,TheAESCorporationCarbonDioxideRemoval:Best-PracticeGuidelines16Oneadditionalconcernisoverhowlongsuchworkingassumptiononpricepertonneforremovedgovernmenttaxcreditswilllast.Bauteistrackingcarbon.“Wedon’tknowifwe’llgetthere,butlet’stheCDRpolicylandscapeinothercountries,asstartwith$150atonneby2040,”hesays,adding:well,toassesstheirappetiteforstatesupport“Thatwon’tmateriallyimpactglobalGDP,butforthesector.Thatsaid,heisopenaboutAES’sanythinghigherandwedon’tthinkit’llscale.”3.3Leadershipisessential–‘waitandsee’isnotanoptionWhatevertherationaleforinvestinginCDR,ifaoftheForum’suniquecontributionshasbeentocompanyplansonusingremovalstobalancecreateacriticalmassofcompaniesalignedaroundresidualemissionsbyitsnet-zerotargetyear,saythesharedgoalofcarbonremovals.“TheFMC2050,itcannotwaituntil2049beforestartingtoelevatedthistopictoourleadership,”shesays.“Wethinkaboutwheretogetthemfrom.Simplyhopingknowwecan’tmovethemarketalone,butifwethatotherswillstepupandpaythefirst-movercanalignourtargetsandKPIsonscalingdurablepricethatallowscoststocomedownisabehaviourCDRwithourpeers,itbuildstrustandde-risksthedescribedineconomicsasthe“freeriderproblem”.process,”sheadds:“Thenwecanbetteroptimizeourresources.”NoneofthecompaniesinterviewedenvisagesarapiduptakeofengineeredCDRamongbuyersThecommitmentsmadebyFMCmemberstodayofcarboncertificates.ButtheyallagreethatforcansendavaluabledemandsignaltothefutureengineeredCDRsolutionstobecommerciallyviablemarketforCDR.Butmorethanthat,thetechnologyandoperationalattherequiredscalesbythe2030s,developersandsupplierscangototheirbanks2050sandbeyond,itisimperativetostartinvestingwithbindingofftakeagreementsfor50,000ormorenow.Putanotherway,leadershipisessential.tonnesofengineeredremovalsasaproofoftheirfuturecashflow.“SuppliersofcarbonremovalsneedOneintervieweecompany,Salesforce,usedtherealloans;theycan’tscaleupoutoftheirequityForum’sMay2022annualmeetinginDavostopocket.Theyneedaguaranteedincomefromannounceacommitmenttoinvest$100millioncreditworthyofftakerstogettheprojectfinance,”toscaleupandcommercializedurablecarbonsaysMischaRepmann,SeniorRiskManagerintheremovaltechnologies.AccordingtoJamilaYamani,sustainabilityteamofmultinationalreinsurancefirmSalesforce’sdirectorforclimateandenergy,oneSwissRe.Suppliersofcarbonremovalsneedrealloans;theycan’tscaleupoutoftheirequitypocket.Theyneedaguaranteedincomefromcreditworthyofftakerstogettheprojectfinance.MischaRepmann,SeniorSustainabilityRiskManager,SwissReTakingaproactivepositiontodaygivesCDRengineeredCDRasaleadershipopportunitytodevelopersthecapacitytorampupsupplyandstandoutfromthecrowd.“Havinganet-zerotargetbringdownthecostsoftheirremovalsmoreisnormalnow,”shesays.“Itdoesn’tgiveyouaquickly.AccordingtoMOL’sKazuraKoda,waitingcompetitiveedge.”MOLtakesleadershipseriously.forthepriceofCDRtodropisnotanoption.“AlotIt’sthefirstcompanyfromtheAsia-PacificregiontoofpeoplewouldliketobeafreeriderwhiletheCDRcommittotheFMC’scarbonremovalgoal.Itisalsomarketdevelops,waitingtoseeifthetechnologicalthefirstcompanyfromthehard-to-abateshippingCDRcostreduces,”shesays.“Butinsteadofsittingsectortocommit.Andithopesotherswillfollow.ontheside,wedecidedtobeaforerunnerandhelp“WewanttomaketheCDRmarketmorereachablebringdownthecostofthetechnologyfaster.”forourindustrialpartnersandcustomers,especiallyinthehard-to-abatesectors,”saysKoda.Leadershipcanprovidecompanieswithanedgeovertheirpeers.AccordingtoKoda,MOL’stopmanagementseestheFMC’spositiononCarbonDioxideRemoval:Best-PracticeGuidelines173.4EngineeredCDRbringsco-benefits,tooTheco-benefitstoengineeredCDRarelessCompaniesinterviewedhaddifferingpositionsonpronouncedthanforNCSandofadifferentnature.theco-benefitsofengineeredCDR.ForRafaelBroze,SeniorProgramManager,CarbonRemoval,Forexample,biocharandthemineralsusedforMicrosoft,anyco-benefitsshouldbeasecondaryERW,whenspreadonagriculturalfields,havebeenconsideration,withcarbonsequestrationtheclearshowntoenhancesoilhealthandplantfertility,priority.“Wefocusfirstonthecarbon.Ifaftertherebyimprovingcropyields.Biocharcanalsohelppassingthroughthattestwethenseeotherco-protectnativeplantsbyabsorbingtoxicsubstancesbenefits,thenwemightchoosethesolutionwithsecretedbyinvasiveplantspecies.41Furthermore,co-benefits.Butwedon’tweightheco-benefitswhenappliedtooceans,themineralsusedforERWandcarbonatthesametime–thatconfoundsthecanreverseacidificationandreducealgalblooms.42calculus.”ManytechnologiesandprocessesdeployedinHowever,Salesforce’sJamilaYamanipointsoutengineeredCDRsolutionsresemblethoseusedasignificantchallengefacingtheseemergingintoday’sfossilfuelandheavyindustries.Existingtechnologies:“InourCDRportfolio,wewillbeinfrastructure,suchasdepletedoilandgasfields,buyinglargelyunregisteredtonnesatahighcost,pipelinesandindustrialclusters,canbereusedorwithahighriskofnon-delivery.”Becausethegoalrepurposed.Thiscouldpreventlayoffsofworkers,ofthisforwardpurchasestrategyistoscalenew,oreventuallyleadtonewjobsincommunitiesearlymarkets,Yamaniisconsideringnovelkeyconfrontedwithadeclineinmoretraditional,performanceindicators(KPIs)totrackimpact,manyemissions-intensiveindustries.ofwhichareinspiredby,butlookverydifferentfrom,theco-benefitscompaniesareusedtoinThereisalsoanopportunityforemergingmarketstheworldofNCS.“Our$100millioncommitmenttopositionthemselvesearlyandprominentlyinlikelywon’tbuymuchintermsofvolumesofCO2theengineeredCDRspace–whereveruntappedremoved,soit’simportantthatwelookatKPIscleanenergyresourcesandgoodstorageoptionsotherthantonnesofcarboninthegroundtodriveareco-located.Thus,themainco-benefitsofthemostimpact,”shesays.engineeredCDRareaddressingdecentworkandeconomicgrowth(UnitedNationsSustainableDevelopmentGoal#8),whichspeaktotheneedforajusttransition.CarbonDioxideRemoval:Best-PracticeGuidelines18Our$100millioncommitmentlikelywon’tbuymuchintermsofvolumesofCO2removed,soit’simportantthatwelookatKPIsotherthantonnesofcarboninthegroundtodrivethemostimpact.JamilaYamani,Director,Climate&Energy,SalesforceTheseKPIscouldincludethefollowing:Byhowourforwardpurchase?Howmanynewjobsormanyyearsdidwehelpacceleratetheviabilityofrepurposedworkersdoesourinvestmentsupportinthetechnology?Howmanynewmethodologiescommunitieswheretraditionalfossilfueleconomiesdidourpurchaseshelptodevelop?Howmanyarewindingdown?tonnesofcarbonremovalwerecatalysedby3.5AmixofnaturalclimatesolutionsandengineeredCDRisneededBeyondtheFMCcommunity,potentialbuyersofbudgetonNCSwillcausetheoverallCDRpricecarbonremovalcertificatesmaybeeasilyscared(averagedoverallengineeredandNCSsolutions)offbythehighfirst-moverpriceofengineeredCDR,togoupovertimeratherthanhelpingittocomewithlittleappetitetotakealeadershipposition.Todown.TheNCSwilldepletefaster,theirpricecircumventthis,theycouldbetemptedtofocuswillincrease,whiletheunderinvestedengineeredonmuchcheaperandmorereadilyavailableNCSsolutionsremainexpensive.RafaelBrozefromremovals.Thisstrategy,however,canmaketheMicrosoftputsitthisway:“Weneedtoconsiderpricesituationforothermarketparticipantsevenequityifbigcorporationsarebuyingupalltheworse:acompanyspendingallofitsremovalsrelativelyinexpensivenature-basedremovals.”FIGURE4Howcancompaniesuseremovalssmartly?IllustrativeremovalmixinConcertedactionsandIllustrativeremovalmixafterabalancedmixtoday2023preventhighaverageCDR2050BulkremovalfromNCSpriceinthefutureBulkremovalfromat<$30/tCO2eengineeredCDRat$50–$200/tCO2eplussmallshareofengineeredCDRplussmallshareat$250–$1,000/tCO2eofNCSat$25–$75/tCO2eThismixtodaycankeep…preventapricerisemid-centurytokeepaverageremovalpricewellbelow$100/tCO2eand…averageremovalpricetoaround$100/tCO2eNotes:NCS=naturalclimatesolutions,CDR=carbondioixideremovals,tCO2e=tonneofcarbondioxideequivalent.Source:BostonConsultingGroup43CarbonDioxideRemoval:Best-PracticeGuidelines19If,instead,companiesweretospendpartoftheirReflectingonthemixofNCSandengineeredremovalsbudgetonengineeredCDRtoday,theseCDRinhiscompany’sportfolio,AntoinePoulallion,technologieswouldstartcomingdownthecostDirectorofSustainability,BostonConsultingGroupcurvewhilepressureonthelimitedsupplyofquality(BCG),says:“WehadtofindabalancebetweenNCSisreduced.Inthisway,theaverageCDRpriceremovaltypes.Aimingforexclusivelymainstreamwouldbecomecheaperforallmarketparticipants–credits,forexampleafforestationorreforestation,ideallyintimeforwhentheworldneedsCDRatthewouldnothelpunlockthepotentialofmoregigatonnescale.pioneeringandpermanenttechnologicalsolutions,whichweknowtheworldwillalsoneed.OntheTrafigura’sHannahHaumanarguesthat,whileotherhand,coveringourfullfootprintusingonlythe2020swillbeanessential“decadefornature”thesenewtechnologieswasnotfeasibleeitherwithpledgestoenddeforestationandrestoregiventheirnascency.”So,thecompanydecidedonhabitatsby2030,itisvitaltoputweightbehindamixofCDRoptions,encompassingbothnature-commercializingengineeredCDRsolutionstoday,basedandengineeredsolutions.becausetheywillnotbereadyatthescalerequiredinthe2040sunlesscompaniesstartnow.Sowhilenatureneedstobesupportedinitsownright,engineeredCDRisindispensableoverthemidtolongterm.CarbonDioxideRemoval:Best-PracticeGuidelines204HowtoaccessthenascentmarketforengineeredCDRSecuringthebudget,decidingontherightmarketaccessmodelandcommunicatingcorporateCDRengagementbothin-houseandexternallyareallkeypriorities.InordertoengageintheengineeredCDRspace,nuances.Thischapteraimstocovertheessentials:anumberofquestionsneedtobeworkedthroughhowtosecurethebudget,choosingtherightandansweredupfront(seeBox2).Therearemarketaccessmodel,andgoodcommunicationscertainlyadditionalquestionsandcase-by-caseabouttheengagementin-houseandexternally.BOX2QuestionstoconsiderwhendecidinghowtoaccesstheengineeredCDRmarket–Whatisthecompany’sclimatestrategyand–Howfarintothefuture–andthushowdoesit(already)embracetheroleofCDR?impactful–cantheengagementbeplanned?–Whatisthecompany’sbusinessstrategyand–WhatisthebudgetandhowcanitbesecuredcantheCDRengagementbelinkedtoit?foraslongastheengagementisplannedtolast?–WhoistheexecutivesponsorandaretheyonboardwiththeCDRnarrative?–Howcanthemarketbepracticallyaccessedsothatitsuitstheclimateandbusiness–Whichcorporatefunctionsaretobeinvolvedstrategyandfitstheavailablehumanresources(e.g.procurement,finance,legal,sustainability,andbudget?business)andwhoarethepotentialalliestherein?–Whatpartnersareneededandavailableforwhichmarketaccessroute?–What’smyownlevelofexpertiseorthatofcolleagues/allies?CanImakethecasetopay–Whatshouldbecommunicatedtowhomandaconsultant?when?4.1HowtosecurethebudgetInternalcarbonpricemodelThenabudgetrequestisfiledandthisprocessrepeatsyearafteryear.ThecostcanbeassumedbyWhenacompanybuyscarboncertificates,itoftenthecompanybudget,orcollectedfromtheactualalreadyknowsboththevolume(givenbyitscurrentemitterswithinthecompany(e.g.airtravellers).Theemissionsthatitplanstomatchwiththeequivalentlattercanthenbecommunicatedasaninternalnumberofcertificates)andthepricepertonnecarbonprice,whichdiffersfromyeartoyearbased(basedoncurrentmarketoffersithassolicited).onthemarketpriceoftheselectedcertificates.CarbonDioxideRemoval:Best-PracticeGuidelines21SeveralFMCmembershaveadoptedadifferentthecompanylauncheditsCO2NetZeroprogramme,strategytosecurethebudgetfortheirengineeredwhichintroducedarealinternalcarbonpriceofCDRcertificates.Theyaskthemselvesupfront:$100pertonneofCO2.This“carbonsteeringlevy”,whatisthecompanywillingtopayforCDRtodayasSwissRecallsit,appliestothecompany’sandinthefuture?ThentheyimplementthisfigureScope1,Scope2andmaterialupstreamScopeasaninternalcarbonpricingpolicyforaslongas3emissions,includingbusinesstravel.ThefundstheCDRengagementperiodisplanned.Everycollectedarespentonamixofhigh-qualityyear,thepricepertonnethattheemitterswithincarbonavoidanceandcarbonremovalcertificatesthecompanyhavetopayisthuspreset.Thetocompensatefortheseemissions.Betweensourcingteamcanthenenterofftakeagreements2021and2030,thecarbonpricewillincreaseforaslongasthecarbonpricingpolicyisinplace,incrementallyfrom$100to$200pertonneofCO2therebyensuringthattheaveragepriceoftheandatthesametimetheshareofremovalsinthevariousdeliveriesinagivenyearmatchesthatyear’scertificatemixwillgrowfrom10%in2021to100%internalcarbonpricelevel.by2030.Inotherwords,by2030,SwissReaimstoneutralizeallitsin-scoperesidualemissionsthroughThereareseveraladvantagestothisstrategy:high-qualityremovalsthatcancostonaverage$200pertonne.–ItremovestheuncertaintyofwhetherannualbudgetrequestswillbegrantedornotHowdidthecompanyarriveatthisprice?Thestartingpointof$100istheUNGlobalCompact’s–Transparencyonpricesendsacleardemandminimumrecommendationforinternalcarbonsignaltotechnologydevelopersandsuppliers,pricing.44Thefinalpriceof$200iswhatSwissRewhichbuildsconfidenceandhelpsthemarketexpectstopayonaverageforsafeanddurabledevelopcarbonremovalbytheendofthedecade.“The$200figureisalsoourmarginalabatementcostin–Itenablesthecompanytoenterlong-term2030–soanyabatementmeasurecheaperthanofftakeagreements,soprovidingtheCDR$200pertonneshouldcomebeforepayingfordeveloperswiththefuturerevenuestreamtheyremovals,”explainsMischaRepmann,whoadds:needtoobtainfinance“Thehighertheprice,themorereductionsareprioritizedoverremovals,whichishowsettingan–Mostimportantly,thehigherthepredefinedandinternalcarbonpricecanconnectthetwo.”openlycommunicatedinternalcarbonprice,themoreacompanywillprioritizeemissionSecuringfundingforcarboncertificatesthroughreductionsoverthepurchaseofCDRa10-yearcarbonpricingpolicy–asopposedtofilingbudgetrequestsyearafteryear–comeswithGiventhatsettinganinternalcarbonpriceisanimportantadvantage:itenablesSwissRetocurrentlyavoluntaryexercise,actualpricesvaryenterlong-termofftakeagreementsforremovalconsiderablyfromcompanytocompany.Amongcertificates.In2021,forexample,thecompanytheintervieweecompanies,disclosedpricesrangedenteredtheworld’sfirstcarbonremovalpurchasefrom$80to$200pertonneofcarbonby2030.agreementwithSwissdirectaircaptureproviderClimeworks,worth$10millionover10years.SuchFMCmemberSwissRepioneeredtheideathatcontractsprovideprojectdeveloperswiththefutureastringentinternalcarbonpricingpolicycouldincometheyneedtoraisethefinanceforthenextsecurethebudgetforhigh-qualityCDR.In2021,step-upinscale.Ourinternalcarbonpriceof$200isalsoourmarginalabatementcostin2030–soanyabatementmeasurecheaperthan$200pertonneshouldcomebeforepayingforremovals.Thehighertheprice,themorereductionsareprioritizedoverremovals.MischaRepmann,SeniorSustainabilityRiskManager,SwissReAnotherexampleofacompanyusingtheinternalthebarsetbyFMC.45Toachievethis,BCGcarbonpricemodelisBCG,whichhascommittedthenestablishedacleardollarpertonnecarbontoreachnet-zeroclimateimpactby2030.Topriceexpectation–toreduce,avoidandremoveachievethis,thefirmsetscience-basedtargetsemissions–thatrampsupbetween2022andtohalveemissionsintensityby2025andremove2030.“In2022,wespentanaverage$16peranyunabatedemissionswithhigh-qualitycarbontonne,”saysAntoinePoulallion.“Thisishigherremovalsbytheendofthedecade.InMay2022,thanthemarketaverage,reflectingourdeliberateBCGpledgedtopurchase100,000tonnesofpositioningaspremiumbuyers.”By2025,BCGpermanentcarbonremovalsby2030–doubleexpectsthatamounttoriseto$35,climbingfurtherCarbonDioxideRemoval:Best-PracticeGuidelines22to$80pertonneby2030.Inreality,thismeansIn2020,Microsoftcommittedtomakeitsownthefirmhaspaidandwillcontinuetopaymoretooperationsanditsentiresupplychaincarbon-flyitsconsultantsaroundtheworld.Itisimportantnegativewithinadecade.Itspathwaytoachievingtorealizethat$80pertonnewouldbeanaveragethisgoalisa55%reductioninabsolutecarbonpricepoint.Somenature-basedremovalsmaycostemissionspluscarbonremovals.Thatsameyear,itmuchless.Someengineeredremovalsmaycostaphasedoutitsavoidedemissionsoffsetsandbeganlotmore.toembraceCDR.Moreambitiousstill,MicrosoftpledgedtoremovefromtheenvironmentalltheSettingagoalbybudgetandcarbonthecompanyhaseveremitted,bothdirectlytonnesofCO2removedandthroughitselectricityconsumptionsinceitwasfoundedin1975.AnalternativeapproachtakenbyseveralFMCmembersistosetatime-boundgoalwithadefinedMicrosoft’sfinanceandsustainabilityteamshavebudgetand/oratargetnumberoftonnesofcarbonstrictparametersofsuccessforthedealstheysignremovalsperyear.upto.Thecompany’stargetis5.5milliontonnesofcarbonremovalsperyearby2030.“WehaveaForSalesforce,itwasimportanttomakeatop-budgetandatonnesgoal,”explainsBroze,“thatendcommitmentof$100milliontoscaleupanddrivesdiscipline,focusandriskmanagement.”commercializedurableCDRtechnologies.WhenKPIsincludetonnesdeliveredoverthefollowingitcomestospendingthemoney,JamilaYamani12months(forCDRapproachesupandrunning),anticipatesbuildingaportfoliothatputsimpactfirst,tonnesdeliveredupto2030,averagepriceperpositioningthecompanytomakeCDRpurchasestonneacrosstheportfolio,thepriceofanygiveninareasbestalignedwiththecompany’stargetsdealandtherisksofanygivendeal.ThecontractsandKPIs.“This$100millionisgivingusthespacetheyseekstrikeabalancebetweenlong-termtogetitright,andputintheearlyresources,sothatsuretyofdeliveryforMicrosoftandsuretyofwhenthetimecomes,CDRisavailableatscalerevenueforthesupplierandfinanciers.“ThebankstohelpSalesforcemeetitscommitmentsandthewon’tinvestandunderwriteacontractwithaworldtomeetitsclimategoals,”shesays.supplierifMicrosoftcouldexitanytime,sowelookatreasonablyrestrictingouroptionstowalkaway,”saysBroze.Microsoft’srulesofthumbforcarbonremovalaresimple:contractforamixoftechnologies,suppliersandcountries.RafaelBroze,SeniorProgramManager,CarbonRemoval,MicrosoftWhenitcomestodecidingwhichCDRprojectscreditsandlastyearanIndianministersaidtoinvestin,Brozecounselsinfavourofspreadingthecountrywouldhaltallextra-nationalcarbontherisk.Henotesthatinvestinginemergingtransfers.“Microsoft’srulesofthumbforcarboneconomiesischallenging.Zimbabwerecentlyremovalaresimple,”saysBroze:“contractforasignalledamovetonationalizeallofitscarbonmixoftechnologies,suppliersandcountries.”CarbonDioxideRemoval:Best-PracticeGuidelines234.2ChoosingtherightmarketaccessmodelNext,companiesneedtofindawaytoaccessdisinterestedadvisers,”saysRafaelBroze.“WedotheengineeredCDRmarket,whichrequiresaalotofdiggingintoindividualprojectstobeabletopurchasingstrategythatspeakstotheirappetitebelieveinthem,andeveryprojecthastoclearourfordirectdeal-making,capacitytomanagequalitybarbeforewestartdiscussingpricesandtransactions,andexpectationsintermsofquality,partners,”headds.price,volumeanddeliveryschedule.Therearethreecommonaccessroutes:Trafigura,whichistakingtheriskontoitsbalancesheet,alsoworksdirectlywithtechdevelopersand–Directdeal-makingprojectownerstocreateviableandresilientcarbonremovalbusinesses.–Participationinabuyers’clubParticipationinabuyers’club–Over-the-counterpurchasesAbuyers’clubiswhereseveralbuyerscometogether,Foreachoftheseaccessmodels,therearepooltheirindividualdemandforremovalsandhaveimplementationpartners.ThoseworkingwithFMCitplacedcollectivelyonthemarketthroughanincludethefollowing:CarbonDirect46actsasaintermediary,thebuyers’clubmanager.Themanagerconsultantforeveryaccessmodel,butparticularlytakescareofalltransactionalandadministrativefordirectdeal-making;Frontier47andNextGen48duties,suchasbuildingaprojectpipelinefromarebuyers’clubs;whileCarbonfuture49andPatch50differenttechnologies,suppliers,projectsizesandspecializeinover-the-counterpurchases.geographies.Membersneedonlyonecontractwiththeintermediary,asopposedtoaseparateDirectdeal-makingcontractperprojectinthedirectdeal-makingmodelabove.TheycommittoparticipateintheclubwithaDirectdeal-makingwithselectedremovalsparticulardollarorvolumeamountandgainaccesstodevelopersenablesbuyerstogettoknowtheamanagedportfolioofengineeredCDR.developerandnegotiatetheexactcontractterms.Thiscomeswithsubstantialtransactionaleffort,Overtime,membersreceivetheircorrespondingsuchassolicitingoffers,duediligenceonshort-shareoftheresultingremovalsmix–atalowerlistedsuppliersandcontractnegotiations.Therefore,averagepriceforamorediversifiedportfoliothantheythedirectdeal-makingmodelisusuallyfeasibleonlycouldhavepurchasedindependently.Thebuyers’forlargecompanieswithbiggerofftakevolumes.clubmodelisparticularlysuitableforcompaniesThesecompaniesalsoprofitbyavoidingfeesforwithsmallerofftakevolumesandlesstoleranceforintermediaries,and–moreimportantly–becausetransactionalefforts,butwhostillwanttosourcethedirectexchangewithdevelopershelpsthemtoremovalsthroughimpactfullonger-termofftakes.buildupin-housecompetencyandrelationshipswithstrategicpartnersintheengineeredCDRspace.Frontieractsonbehalfofbothbuyersandsellers,andaimstosecurethepurchaseof$1billionofCarbonDirectaimstoenableorganizationstopermanentcarbonremovalcreditsbetween2022reduce,removeandusetheiremissionsusingand2030.Buyersdecidehowmuchtheywanttocarbonscience.Theirclientscurrentlyrepresentspendoncarbonremovaleachyearuntil2030.morethan100milliontonnesofcarbonremovalFrontierthenaggregatesthosecommitmentstosetdemand.InthelargestengineeredCDRdealofatotalannualdemandpool,vetscarbonremovalitskindtodate,CarbonDirectactedastechnicalsuppliersandinvitesthemtoapplyforpurchasesadviserinMicrosoft’srecentpurchaseofaroundviaregularrequestsforproposals(RFPs).Frontier2.7milliontonnesofBECCS-drivencarbonremovalcanfacilitatebothlow-volumepre-purchasesandcreditsfromDanishenergygiantØrsted’spowerlong-termofftakeagreementstopurchasefuturefacilitiesoveran11-yearperiod.51tonnesofcarbonremovalatanagreedprice,ifandwhendelivered.SuppliersarepaidonlywhentheInaseparatedeal,Microsoftsignedalong-termtonnesofcarbonareremoved.contracttopurchaseupto315,000tonnesofCDRoveramulti-yearperiodfromHeirloom,representingNextGenaimstobuildamarketforcredible,oneofthelargestDACdealstodateandprovidingscalableCDRbycommittingto1millioncertifiedpredictablecashflowsforHeirloomtoenablelong-termcarbonremovalsby2025fordeliveryprojectfinancingoftheirupcomingfacilities.by2030,atanaveragepriceof$200pertonne.AllremovalspurchasedthroughNextGenmust“WeuseCarbonDirectasatechnicaladviser,becertifiedunderICROAstandards52toensureaswevaluetheirdeepexpertiseandabilitytoquality,transparencyandcredibility;andallwilllookaroundcorners.Thenwedoallourdealsberetiredbybuyersinapublicregistrytoavoiddirectbecausewethinkit’simportanttohavedoublecounting.53CarbonDioxideRemoval:Best-PracticeGuidelines24Over-the-counterpurchasesmonthstoclose,giventhecomplexityofnegotiatingacontractfromscratchthathadtospecifytheEmergingmarketplaces,suchasCarbonfutureschedule,volume,deliveryandpricepertonneofandPatch,offerover-the-counterpurchasesinremovals.ThecontractbecameknownasacarbonwhichengineeredCDRcertificatesaretradedremovalspurchaseagreement(CRPA)andactedasamongsuppliers,brokersandbuyers.Sincetheseatemplateforfuturedeals.purchasesareusuallyone-offs,theysendaweakermarketsignalcomparedtolonger-termofftakesthat“Wecouldn’tdothatwith30moreprojects,”saysarearrangeddirectlyorviaabuyers’club.PricesRepmann.“Instead,welookedforanintermediarypertonneareoftenfixed(unlesstheofftakevolumethathadapipelineofprojectsallfallingunderexceedsacertainthreshold)andaccommodatethesamelong-termofftakemodel.”Notfindingaapotentiallyheavyoverheadfrombrokersandsuitableintermediary,from2020SwissRehelpedmarketplaceoperators.establishNextGenasabuyers’clubandjoineditin2022alongsidefellowFMCfounderbuyersBCGForthebuyers,transactionsarefast,low-effortandandMOL.addflexibilitytoanysourcingstrategy.Forinstance,potentialgapsbetweenactualdemandandwhatisForSwissRe,partneringwithaglobalconsolidatorcontractedthroughdirectofftakesormembershipofcarbonremovalssuchasNextGen–usingaofabuyers’clubcanbeclosedquicklyatyear-end.standardizedCRPA–iscriticaltoscalingupthesector.IntermediariesnotonlysavecompaniestimeStandardizedofftakeagreementsbystandardizingandacceleratingdeal-making,holdthekeytoscalingupthetheyalsoserveavitalfunctioninconsolidatingandsectorbuildingdemand.“Weseealackofdemandratherthanashortageofsupply.InhelpingtoestablishSwissRe’sMischaRepmannexplainshowNextGen,we’rehelpingbuilddemandbymakingNextGencameintobeing.Thereinsurer’sfirstlong-iteasierformorebuyerstoaccesstheremovalstermofftakeagreementwithClimeworkstooksixmarket,”saysRepmann.Weseealackofdemandratherthanashortageofsupply.InhelpingtoestablishNextGen,wehelptobuilddemandbymakingiteasierformorebuyerstoaccesstheremovalsmarket.MischaRepmann,SeniorSustainabilityRiskManager,SwissReMichaelBauteofAESagreesthatstructuringaIfyou’rejuststartingout–hireastandardtypeofcontract–forexample,onebasedconsultant!ontheenergyindustry’sexistingpowerpurchaseagreements(PPAs)–iscriticaltogrowingtheCDRFMCmembersuseallthreeaccessroutestosector.AES,recognizedfortwoyearsrunningasvariousdegrees–inparallelorinsequence–inthetopdeveloperworldwideatsigningrenewablecombinationsthatbestsuittheirneeds,ambitionsPPAswithcorporateofftakers,islookingtouseandlevelofexperience.Formostcompanies,thecompany’sexpertiseintheCDRsector.Bauteexperienceislimitedorabsent,giventhenoveltyofisconcerned,however,thattechdevelopersandengineeredCDRanditsnascentmarket.Therefore,suppliersofcreditareaskingbuyerstotaketooitcanmakegoodsensetogetsupportfromanmuchriskbypayingupfrontforCDR.“Togetmoreexternalspecialist.buyersin,theindustrycannotcontinueaskingcustomersforupfrontcash.IntherenewableConsultantscanbriefclientsontheup-to-dateenergyindustry,acustomeragreestoofftakeover,intricaciesofcarbonmarkets,relatedstandards,say,a10–12-yeartermandyoupaywhenyougetregulationsandclaims,andprovideamarketthepower,orinthiscase,thecarbonremovals,”overviewofengineeredCDR.Theycanofferhesays.technicaladviceonanyofthethreemarketaccessroutesdescribedabove,particularlyondirectofftakesandhowtocombinethemintoanimpactful,workablepurchasingstrategy.Consultantscanalsoaccompanytheactualpurchasingprocess:solicitingoffers,performingduediligenceonvendorsandprojectsandcontractingandhandlingcarboncertificatesupondelivery.CarbonDioxideRemoval:Best-PracticeGuidelines254.3CommunicatingCDRperformancein-houseandoutsidethecompanyIn-housecommunicationSwissReengagesitsemployeesinitsnet-zeroimplementationstrategythroughthededicatedCommitmenttoacompany’splannedengagementapp-based“NetZeroYou2”programme.LaunchedinengineeredCDRisaprerequisitefromtheveryin2021,itseekstoencourageindividualactionandtop.Buttogettothetoprequirestakingthecasetoinspireemployeesacrossthegrouptoadoptthethechainofdecision-makerswhowillbethedoormotto:“Doourbest,removetherest.”Tosupportopenerstothatlevel.Attheendofthisprocess,the“doourbest”component,SwissRehelpsideally,theCEOthemselfsignsofftheengagementemployeescalculatetheirprivatecarbonfootprintinengineeredCDR;forexample,viatheFMCandoffersvariousclimatechallenges,practicalcommitment.Onceleadershipissignedup,itisclimateactionsandevents.Tosupportthe“removeimportanttocommunicatethecompany’sCDRtherest”component,employeescanaccessSwissstorytothewiderworkforce.Re’scarboncertificatepurchasingcampaign,whichincludesengineeredCDRthroughlong-termofftakesAtAES,MichaelBautehasalreadyinitiatedthatcouldnotusuallybeaccessedbyindividuals.widespreadinternalinformationcampaigns.Todate,morethan5,000ofthecompany’s14,000Butashemakesclear:“Thisisnotjustanotheremployeeshaveparticipatedintheprogramme,procurementapproval–we’reexploringthecreationsecuring2,200tonnesofcarboncertificates.54ofanewbusinessaroundcarbonremovalwiththepotentialforexponentialvaluecreation.ThatbringsThird-partycommunicationwithitanewlevelofbusinessscrutiny.”SoBaute’sprimarycommunicationpriorityistocreateastrategyTherearemanyreasonswhycompaniesmayseekthatcansecurea“bigbuy-infromeverybody”.tocommunicatewiththirdpartiesandthewiderpublicabouttheircarbonremovalinitiativesandWhenitcomestocommunicatingwithemployees,achievements.SomearisingfromtheinterviewsTrafigurahasfoundtherearemanycarbonremovalconductedforthisreportarerecountedbelow.enthusiastsacrossits16,000-strongworkforcewhoarevolunteeringtogetinvolved.“Asaresult,PubliclylistedcompaniessuchasMOLarerequiredwe’verolledoutaprogrammeforeachdepartmenttodisclosehowtheyaregoingtodeliverontheiranddesktohaveawindowintowhatwe’re2.2milliontonnecarbonremovalcommitment.doing–fromintroductorywebinarsthroughto“Firstwehavetoensurewedisclosetheprogresscompany-wideupdatesinadditiontoourpublicofCDRcreditretirementanddemonstrateifwearecommunications,”saysHannahHauman,whoontracktohitourtarget,”saysKazuraKoda.Foradds:“There’salotofthirstforknowledge.”MOL,thepriorityisabout“takingrobuststepsandbeingproudandtransparentwithstakeholders,”sheadds.CarbonDioxideRemoval:Best-PracticeGuidelines26ForcompaniessuchasAESseekingtomakeBeingopeninadvanceaboutthepriceacompanyabusinessoutofthis,communicatingwiththeispreparedtopayforengineeredremovalscanmarketisasalesopportunity.“Wewanttobethesendtheall-importantdemandsignaltothemarketdeploymentpartnerofchoicefortechdevelopersthatthisisasectorworthinvestingin.Thisformaswellascompanieslookingtopurchaseofcommunicationliesatthecoreoftherationaleremovals,”saysBaute,adding:“ItshouldgivetrustinformingtheFMC.tobothsuppliersandbuyersthatanexperiencedinfrastructuredeveloperlikeAESisexploringhowForexample,BCG’sAntoinePoulallionsays:“Webesttobringscaletothetable.”areproudofourtransparencyaroundthepricepertonnewearepayingforcarbonremovals.We’veMicrosoftpublicizeswhatevercarbonremovalsheardit’shelpfulforprojectdevelopersandtheiritisbuyingandissuesregularlessons-learnedfundingpartnersbecausetheyknowtherewillbepapers.“We’reeagertotalktootherbuyersandbuyersatthoselevels.”sellerstoprovidethemwithanyadvicewecan,aswellaslookingtocollaborate,”saysRafaelBroze.“Wewantotherbuyerstobeawareofgoodopportunities–withengineeredremovals,thereisnocompetitionamongbuyersfornow,”headds.MeanwhileforTrafigura,withitsverylargeclientbaseandScope3impact,Haumannotes:“Wehavetheabilitytospeakonbehalfofourcustomersandthemarket.”Thecompanydoesthisthroughwhitepapers,videosandoccasionalpodcasts.Weareproudofourtransparencyaroundthepricepertonnewearepayingforcarbonremovals.We’veheardit’shelpfulforprojectdevelopersandtheirfundingpartnersbecausetheyknowtherewillbebuyersatthoselevels.AntoinePoulallion,DirectorofSustainability,BostonConsultingGroupInaddition,transparencyservesapurposebothithelpstoanchortheoverallcost.Andwehopeit’sforinternalcostcontrolandforbuildingtrustwithhelpfulforthepublicbecausetheycanseethatwethewiderpublic.Poulallionputsitthisway:“Onthearedoingourbesttobuyhigh-qualityremovals.”internalside,it’shelpfulformanagementbecauseCarbonDioxideRemoval:Best-PracticeGuidelines27ConclusionBycommittingtoengineeredCDRtoday,companiescandrivevalueformoneywhiledemonstratingclimateleadership.ThiswhitepaperpresentsthecaseforeveryThebestwaytocommittoengineeredCDRcompanytomakeitsowncommitmenttoinvestinisthroughalong-termofftakeagreementthatengineeredcarbondioxideremovalwithoutdelay.guaranteessuppliersanincomestreamtheycanThetechnologiesarestilltooexpensiveforsure,usetoleveragelinesofcredittoinvestintheirbutonlyifcompaniessenddemandsignalstothechosentechnology.Thispaperhasdescribedhowmarketwillpricescomedown–foreveryone.companiescansecuresuchagreementstailoredtotheirsizeandbudget,whetherbydirectdeal-EngineeredCDRsolutions–suchasbiochar,making,throughabuyers’cluborviaover-the-BECCS,DACCSandERW–offeradditional,counterpurchases.durableandquantifiableremovalsthatcanhelpcompaniesdeliverontheirclimatetargetsandThebottomlineisthattheworldcannotlimitguardagainstaccusationsofgreenwashing.Theyglobaltemperaturesto1.5°Coreven2.0°C–andcanalsobuildthecredibilityofacompany’sbroadermaintainthematthatlevel–withoutsomedegreeclimatestrategy,sharpeningitsreputationintheofengineeredcarbonremovals.Thesoonereyesofemployees,clientsandinvestors.companiescandemonstratedemandforthesesolutions,thequickertheindustrywillscaleupandNocompanycanyetaffordtospendallitscarbonthefasterpriceswillfall.TheneedofthehourisnotmitigationbudgetonengineeredCDRalone.Atowaitandsee.Nowisatimeforleadership.mixofnaturalclimatesolutionsandengineeredCDRisneeded.Butunlesscompaniescommittoengineeredsolutionstoday,thepricesforengineeredCDRwillstayhigh,thesupplyofnature-basedsolutionswilldiminish,andtheaveragecostofcarbonremovalswillriseforall.CarbonDioxideRemoval:Best-PracticeGuidelines28AppendixQuestionsforcompaniesinterviewedforthisreport:1.WhydidyourcompanygetinvolvedinengineeredCDR?Howdidyouconvinceleadership?Aretherationalesmainlystrategicorfinancial?2.HowareyouexecutingyourengineeredCDRstrategyintermsofbudget?Whatisthemixbetweenengineeredandnaturalsolutions?Wheredoesthefinancingcomefrom–aninternalcarbonpriceorbudget?IsCDRpartofyourbusinessmodel?3.Howhaveyoufoundandworkedwithimplementingpartners?Howdoyouvetthem?Howdoyouchoosetheoptimalengagementorofftakemodel?Whatcriteriaorstandardsdoyouapplyandhowdoyoumeasurethese?4.Howdoyoumanageyourongoingcommunication,whetherwiththeboard,managementorthewidermarket?Howdoyouviewyourroleasabuyerinhelpingstimulatemarketdevelopmentthroughcommunicatingprojectoutcomes?CarbonDioxideRemoval:Best-PracticeGuidelines29ContributorsWorldEconomicForumNasimPourLead,CarbonRemovalsandMarketInnovationJonathanWalterFreelancewriterAcknowledgementsTheWorldEconomicForumwouldliketothankthefollowingindividualsfortheirgenerousandinsightfulcontributionstothispublication:MichaelBautePhilipMossEntrepreneur-in-ResidenceforCarbonRemoval,Chairman,NextGenCDRFacilityTheAESCorporationHenryMumfordRafaelBrozeConsultant,BostonConsultingGroupSeniorProgramManager,CarbonRemoval,MicrosoftAntoinePoulallionDirectorofSustainability,BostonConsultingGroupKatherineDuffPrincipal,BostonConsultingGroupMischaRepmannSeniorSustainabilityRiskManager,SwissReJaneFlegalClimateadvisor,StripeTomSpencerEnvironmentalManagementSpecialist,SwissReLucyHargreavesCorporateAffairs&ClimatePolicy,PatchLeilaToplicChiefCommunications&TrustOfficer,CarbonfutureHannahHaumanGlobalHeadofCarbonTrading,TrafiguraSumitVermaConsultant,BostonConsultingGroupKazuraKodaGeneralManager,CarbonDesk,MitsuiO.S.K.LinesJamilaYamani(MOL)Director,Climate&Energy,SalesforceContentanddesignBiancaGay-FulconisDesigner,1-PactEditionAlisonMooreEditor,AstraContentCharlesPhillipsEditor,AstraContentCarbonDioxideRemoval:Best-PracticeGuidelines30Endnotes1.McGrath,M.etal.,“WorldBreachesKey1.5CWarmingMarkforRecordNumberofDays”,BBCNews,7October2023:https://www.bbc.co.uk/news/science-environment-66857354.2.Lamboll,R.etal.,“AssessingtheSizeandUncertaintyofRemainingCarbonBudgets”,NatureClimateChange,30October2023:https://www.nature.com/articles/s41558-023-01848-5.3.IntergovernmentalPanelonClimateChange(IPCC),SpecialReport:GlobalWarmingof1.5°C,SummaryforPolicymakers,2018,p.14:https://www.ipcc.ch/sr15/chapter/spm/.4.IntergovernmentalPanelonClimateChange(IPCC),SpecialReport:GlobalWarmingof1.5°C:FAQChapter1,2018:https://www.ipcc.ch/sr15/faq/faq-chapter-1/.5.Statista,“AnnualCarbonDioxide(CO2)EmissionsWorldwidefrom1940to2022(inBillionMetricTonnes)”,November2022:https://www.statista.com/statistics/276629/global-co2-emissions/.Dataasfollows:2015:35.56billiontonnes(Gt);2016:35.52Gt;2017:36.1Gt;2018:36.83Gt;2019:37.08Gt;2020:35.26Gt;2021:37.12Gt;2022:37.49Gt(projection).6.IntergovernmentalPanelonClimateChange(IPCC),SpecialReport:GlobalWarmingof1.5°C:HeadlineStatementsfromtheSummaryforPolicymakers,2018:https://www.ipcc.ch/site/assets/uploads/sites/2/2019/06/SR15_Headline-statements.pdf.7.ScienceBasedTargetsInitiative(SBTi),“TheCorporateNet-ZeroStandard”:https://sciencebasedtargets.org/net-zero.8.IntergovernmentalPanelonClimateChange(IPCC),SpecialReport:GlobalWarmingof1.5°C:SummaryforPolicymakers,2018:https://www.ipcc.ch/sr15/chapter/spm/.9.Ibid.p.14:https://www.ipcc.ch/sr15/chapter/spm/.10.Azarabadi,H.etal.,“ShiftingtheDirectAirCaptureParadigm”,BostonConsultingGroup(BCG),5June2023:https://www.bcg.com/publications/2023/solving-direct-air-carbon-capture-challenge.11.Stainford,T.andBrzezinski,B.,“MoreThanHalfofAllCO2EmissionsSince1751EmittedintheLast30Years”,InstituteforEuropeanEnvironmentalPolicy(IEEP),29April2020:https://ieep.eu/news/more-than-half-of-all-co2-emissions-since-1751-emitted-in-the-last-30-years/.12.WorldEconomicForum,OntheCriticalRoleofCarbonRemovalandHowCompaniesCanUseItSmartly,AllianceofCEOClimateLeaders’CarbonRemovalActionGroup,withcontributionsfrommembersoftheForum’sGlobalFutureCouncilonNet-ZeroTransition,November2021:https://www3.weforum.org/docs/WEF_Carbon_Removal_for_CEOs_read.pdf.13.Ibid.14.WorldEconomicForum,FirstMoversCoalition:https://www.weforum.org/first-movers-coalition/sectors.15.Naturalclimatesolutions(NCS)include:forestation–eitherplantingnewtreesonpreviouslywoodlesslandorrestoringforeststopreservetheircapacitytoactasnaturalcarbonsinks;soilsequestration–increasingthecarboncontentofsoil,throughchangesinlandmanagement,suchasno-tillagricultureanduseofcovercrops;bluecarbon–wetlandandmarineecosystems,suchasmangrovesandkelp,whichcanlockawaycarbonwhenmanagedproperly.16.IntergovernmentalPanelonClimateChange(IPCC),ClimateChange2022:MitigationofClimateChange:WorkingGroupIIIContributiontotheSixthAssessmentReportoftheIntergovernmentalPanelonClimateChange,2022,Table12.6,pp.1275–1276:https://www.ipcc.ch/report/ar6/wg3/.17.AmericanUniversity,Washington,DC,“CarbonRemovalFactSheet:SoilCarbon&Biochar”,2018:https://www.american.edu/sis/centers/carbon-removal/upload/icrlp_fact_sheet_soil_carbon_biochar_181006.pdf.18.Chiquier,S.etal.,“AComparativeAnalysisoftheEfficiency,TimingandPermanenceofCO2RemovalPathways”,Energy&EnvironmentalScience,Issue10,2022:https://pubs.rsc.org/en/content/articlelanding/2022/ee/d2ee01021f.19.Petersen,H.I.etal.,“CarbonStabilityandMorphotypeCompositionofBiocharsfromFeedstocksintheMekongDelta,Vietnam”,InternationalJournalofCoalGeology,Vol.271,15April2023:https://www.sciencedirect.com/science/article/pii/S0166516223000514#t0010.20.IntergovernmentalPanelonClimateChange(IPCC),ClimateChange2022:MitigationofClimateChange:WorkingGroupIIIContributiontotheSixthAssessmentReportoftheIntergovernmentalPanelonClimateChange,2022,Table12.6,pp.1275–1276:https://www.ipcc.ch/report/ar6/wg3/.21.Cdr.fyi,“KeyMetrics”:https://www.cdr.fyi/.22.Glaser,B.etal.,“BiocharisCarbonNegative”,NatureGeoscience,January2009:https://www.nature.com/articles/ngeo395#:~:text=Carbon%20sequestration%20through%20biochar%20involves,of%20about%202%2C000%20years5.23.IntergovernmentalPanelonClimateChange(IPCC),ClimateChange2022:MitigationofClimateChange:WorkingGroupIIIContributiontotheSixthAssessmentReportoftheIntergovernmentalPanelonClimateChange,2022,Table12.6,pp.1275–1276:https://www.ipcc.ch/report/ar6/wg3/.CarbonDioxideRemoval:Best-PracticeGuidelines3124.InternationalEnergyAgency(IEA),“BioenergywithCarbonCaptureandStorage:Tracking–September2022”:https://www.iea.org/reports/bioenergy-with-carbon-capture-and-storage.25.IntergovernmentalPanelonClimateChange(IPCC),ClimateChange2022:MitigationofClimateChange:WorkingGroupIIIContributiontotheSixthAssessmentReportoftheIntergovernmentalPanelonClimateChange,2022,Table12.6,pp.1275–1276:https://www.ipcc.ch/report/ar6/wg3/.26.Ibid.27.Azarabadi,H.etal,“ShiftingtheDirectAirCaptureParadigm”,BostonConsultingGroup(BCG),5June2023:https://www.bcg.com/publications/2023/solving-direct-air-carbon-capture-challenge.28.InternationalEnergyAgency(IEA),“DirectAirCapture:Tracking–September2022”:https://www.iea.org/reports/direct-air-capture.29.Azarabadi,H.etal,“ShiftingtheDirectAirCaptureParadigm”,BostonConsultingGroup(BCG),5June2023:https://www.bcg.com/publications/2023/solving-direct-air-carbon-capture-challenge.30.TheIntegrityCouncilfortheVoluntaryCarbonMarket,“TheCoreCarbonPrinciples”,2023:https://icvcm.org/the-core-carbon-principles/.31.Smith,S.etal.,TheStateofCarbonDioxideRemoval–1stEdition,UniversityofOxford,2023:https://www.stateofcdr.org/home/#key.32.IntergovernmentalPanelonClimateChange(IPCC),ClimateChange2022:MitigationofClimateChange:WorkingGroupIIIContributiontotheSixthAssessmentReportoftheIntergovernmentalPanelonClimateChange,2022,Table12.6,pp.1275–1276:https://www.ipcc.ch/report/ar6/wg3/.ThedataiscalculatedusingtheIPCC’supperestimatesofmitigationpotentialfor:engineeredCDR(takenasthesumof:DACCS,enhancedrockweathering,BECCSandbiochar);naturalclimatesolutions(takenasthesumofafforestation/reforestation,soilcarbonsequestrationincroplandsandgrasslands,peatlandandcoastalwetlandrestoration,agroforestryandimprovedforestmanagement);solutionswithalowtechnologyreadinesslevel(TRL)arenotcounted.33.Kalra,G.etal.,TechnicalCO2RemovalsMarket:PresentandFuture,TuckSchoolofBusiness,DartmouthCollege,May2022:https://www.tuck.dartmouth.edu/uploads/content/TechnicalCO2RemovalsMarketvF1.pdf.34.InternationalEnergyAgency(IEA),DirectAirCapture2022,April2022:https://www.iea.org/reports/direct-air-capture-2022.35.InternationalCarbonReductionandOffsetAlliance(ICROA),“ICROACodeofBestPractice”,July2023:https://icroa.org/icroa-code-of-best-practice/.36.FirstMoversCoalition(FMC):https://www.weforum.org/first-movers-coalition/sectors.37.CDRtechnologiesconsideredtobewithinthescopeoftheFMC’scommitmentmustsatisfythefollowingthresholds:permanence–solutionsthatdemonstrablystorecapturedcarbonfor1,000+years;andscalability–solutionsthatcanpotentiallystoreatleast1Mtofcarbonby2030and1Gtby2050.38.Tyson,J.,“LargeCompaniesHideBehindNetZero‘FigLeaf’:Report”,CFODive,21February2023:https://www.cfodive.com/news/large-companies-hide-behind-net-zero-fig-leaf-ESG-GHG-sustainability/643215/.39.Rives,K.,“CompaniesFace‘MassiveGrowth’inLitigationoverClimateClaims”,S&PGlobalMarketIntelligence,6July2023:https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/companies-face-massive-growth-in-litigation-over-climate-claims-76429935#:~:text=In%20May%2C%20a%20class%2Daction,on%20allegedly%20questionable%20carbon%20offsets.40.VoluntaryCarbonMarketsIntegrityInitiative(VCMI),VCMIClaimsCodeofPractice,June2023:https://vcmintegrity.org/vcmi-claims-code-of-practice/.41.Adams,M.etal.,“TheEffectofBiocharonNativeandInvasivePrairiePlantSpecies”,InvasivePlantScienceandManagement,Vol.6,Issue2,pp.197–207,June2013:https://doi.org/10.1614/IPSM-D-12-00058.1.42.Vakilifard,N.etal.,“TheRoleofEnhancedRockWeatheringDeploymentwithAgricultureinLimitingFutureWarmingandProtectingCoralReefs”,EnvironmentalResearchLetters,Vol.6,No.9,12August2021:https://doi.org/10.1088/1748-9326/ac1818.43.WorldEconomicForum,OntheCriticalRoleofCarbonRemovalandHowCompaniesCanUseItSmartly,AllianceofCEOClimateLeaders’CarbonRemovalActionGroup,withcontributionsfrommembersoftheForum’sGlobalFutureCouncilonNet-ZeroTransition,November2021:https://www3.weforum.org/docs/WEF_Carbon_Removal_for_CEOs_read.pdf.44.UnitedNationsGlobalCompact,“CarbonPricing”,2023:https://unglobalcompact.org/take-action/action/carbon.45.BostonConsultingGroup(BCG),“BCGCommitstoRemove100,000TonnesofCarbonby2030asExpandedFirstMoverCoalitionSendsPowerfulSignaltoMarkettoCommercializeZero-CarbonTech”,25May2022:https://www.bcg.com/press/25may2022-bcg-expanded-first-mover-coalition-zero-carbon-tech.46.CarbonDirect:https://www.carbon-direct.com/.47.Frontier:https://frontierclimate.com/.48.NextGen:https://www.nextgencdr.com/.49.Carbonfuture:https://www.carbonfuture.earth/.CarbonDioxideRemoval:Best-PracticeGuidelines3250.Patch:https://www.patch.io/.51.Gordon,O.,“ØrstedLaunchesLandmarkCCSProjectinDenmark”,EnergyMonitor,23May2023:https://www.energymonitor.ai/tech/carbon-removal/orsted-launches-landmark-ccs-project-in-denmark/.52.InternationalCarbonReductionandOffsetAlliance(ICROA),“AccreditingBestPracticeinCarbonOffsetting”:https://icroa.org/.53.NextGenCDRFacility:https://www.nextgencdr.com/.54.SwissRe,“It’sTimetoStartEngagingYourEmployeesandCustomersasPartofYourSustainabilityStrategy”:https://www.swissre.com/sustainability/sustainable-operations/net-zero-you2-app.html.CarbonDioxideRemoval:Best-PracticeGuidelines33TheWorldEconomicForum,committedtoimprovingthestateoftheworld,istheInternationalOrganizationforPublic-PrivateCooperation.TheForumengagestheforemostpolitical,businessandotherleadersofsocietytoshapeglobal,regionalandindustryagendas.WorldEconomicForum91–93routedelaCapiteCH-1223Cologny/GenevaSwitzerlandTel.:+41(0)228691212Fax:+41(0)227862744contact@weforum.orgwww.weforum.org

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