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How Far Can the EU's Market-shaping Purchasing Programme Go?

How Far Can the EU's Market-shaping Purchasing Programme Go?

CDR Policy Scoop podcast

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Permanent carbon dioxide removals will require major investment – meeting the EU's 2030 target could cost up to €6.7 billion. The key question is: what role can the EU play?

A well-designed EU purchasing programme has emerged as a key tool to unlock this scale. As Hugh McDonald says 

"An EU purchasing programme could play a catalytic role in building the permanent CDR market we want to see alongside private buyers."

Three major Commission reports set the stage

The European Commission has recently released three major reports outlining potential design options for an EU-level purchasing programme for permanent carbon removals. One of these presents a detailed policy assessment and blueprint, following the spring 2024 stakeholder workshop featured in the CDR Policy Scoop podcast.

A central EU buyer can deliver strong early demand signals, reduce financial risk for emerging CDR technologies, and support large demonstration projects. By offering predictable revenue, harmonised rules, and environmental integrity safeguards, such a programme can accelerate cost reductions, crowd in private investment, and prevent fragmented national approaches.

In conversation with Hugh McDonald

To unpack the implications of this blueprint, last September CDR Policy Scoop welcomed Hugh McDonald, Senior Fellow at the Ecologic Institute and lead author of the report.

Joined by co-hosts Eve Tamme and Sebastian Manhart, Hugh explored:

  • How an EU-level buyer can shape a credible, durable CDR market
  • Which procurement models balance flexibility, scale, and fairness
  • How to ensure durability, additionality, and robust MRV
  • What deployment trajectories between 2030–2040 might look like

Looking ahead

The design choices made now will define the trajectory of Europe’s carbon removal sector for decades. With investment needs rising sharply toward 2040, a well-crafted purchasing programme could become a cornerstone of the EU’s strategy for achieving net-zero and building a resilient, high-integrity removal market.

Insights from Hugh McDonald on Europe's emerging framework for Permanent Carbon Removals

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More content from this project

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Keywords
EU carbon removals, permanent carbon removals, EU climate neutrality, net-negative emissions, carbon removal technologies, EU Removals Fund, carbon removal policy, EU climate policy, carbon removal programme, carbon removal incentives
Europe
literature review, expert interviews, policy assessment, stakeholder workshop, comparative evaluation