Unbound Summits

What are the demand drivers for durable #CDR? It's well understood that the voluntary #CarbonMarket alone will fall far short of having the needed impact. @BCG outlines a comprehensive set of policy drivers in their new report, "Scaling CDR: Demand Drivers for Durable Carbon Removal" - check out the visual below. Results? Carbon pricing mechanisms like #EmissionsTrading systems and CBAMs have the largest potential impact, with 725 Mt and 550 Mt per annum respectively. Next up are regulatory requirements in aviation (up to 400 Mt), marine (up to 200 Mt), and power (up to 200 Mt). The report only looks at residual emissions from CO2 due to the "like for like" approach, focusing on emissions from industry, power generation, transport and buildings. Agriculture - a well-known source of residual (non-CO2 greenhouse gas) emissions is outside its scope. To get the full picture, another report focusing on land-based residual emissions and conventional removals would be necessary next to this one. It is interesting to see how the vocabulary around durable CDR is all about "supply" and "demand" whereas decarbonisation is about policy incentives. I guess we've ended up here primarily for two reasons: 1) durable CDR has so far been mostly tackled through (voluntary) carbon markets 2) whilst for some types of emission reductions (think renewables) deliver products or services, CO2 removal is exclusively about waste management - the CO2 in the atmosphere being the waste to be cleaned up. However, there are plenty of emission reduction activities that face the same challenge (think industrial/fossil #CCS) and where the vocabulary doesn't use the "supply" and "demand" narratives. Curious to see how this space keeps evolving. Glad to have made a small contribution to the report, and thanks to everyone involved. Blog post: bcg.com/publications/2024/bo… Press release: bcg.com/press/24june2024-mul… Direct link to the report: web-assets.bcg.com/15/ca/ebf…