A review of commercialisation mechanisms for carbon dioxide removal

Aug 1, 2023

The deployment of carbon dioxide removal (CDR) needs to be scaled up to achieve net zero emission pledges. In this paper we survey the policy mechanisms currently in place globally to incentivise CDR, together with an estimate of what different mechanisms are paying per tonne of CDR, and how those costs are currently distributed. Incentive structures are grouped into three structures, market-based, public procurement, and fiscal mechanisms. We find the majority of mechanisms currently in operation are underresourced and pay too little to enable a portfolio of CDR that could support achievement of net zero. The majority of mechanisms are concentrated in market-based and fiscal structures, specifically carbon markets and subsidies. While not primarily motivated by CDR, mechanisms tend to support established afforestation and soil carbon sequestration methods. Mechanisms for geological CDR remain largely underdeveloped relative to the requirements of modelled net zero scenarios. Commercialisation pathways for CDR require suitable policies and markets throughout the projects development cycle. Discussion and investment in CDR has tended to focus on technology development. Our findings suggest that an equal or greater emphasis on policy innovation may be required if future requirements for CDR are to be met. This study can further support research and policy on the identification of incentive gaps and realistic potential for CDR globally.

Publication details
Carbon dioxide removal
Research paper
Allen, Myles Fankhauser, Sam Hickey, Conor Smith, Steve
Frontiers in Climate

Latest news

Oxford launches revised Offsetting Principles
Oxford launches revised Offsetting Principles

As part of their net zero strategies, many companies, organisations, cities, regions and financial institutions are relying on voluntary carbon credits to offset their residual emissions. But evidence continues to cast doubt on the integrity of ... Read more

Job Opening at ONZ: Impact and Operations Officer
Job Opening at ONZ: Impact and Operations Officer

Oxford Net Zero is looking for a highly organised and motivated Impact and Operations Officer to join its team. You will be working alongside the Programme Manager, Cath Ibbotson, and the Head of Policy and Partnerships, Kaya Axelsson to ... Read more

Net Zero Regulation Stocktake Publishes Results 
Net Zero Regulation Stocktake Publishes Results 

A new report published by Oxford Net Zero presents a comprehensive ‘stocktake’ of developments in net-zero regulation across the G20 in 2023. It focuses primarily on four regulatory domains: claims and financial products standards, disclosure, ... Read more

See more news and events