Carbon removals: The ‘net’ in net zero
The world is not decarbonising quickly enough to reach net zero. Carbon removals, an array of approaches to remove carbon directly from the air (e.g. afforestation, biochar, DACCS and BECCS), may provide a pathway to compensate for a slower-than-needed energy transition.
Scaling from today’s minimal capacity to 8 gigatonnes (Gt) of annual CO2 removal is the requirement for net zero by 2050. A host of promising nature-based and engineered removal solutions have emerged, but cost, deployment readiness and other characteristics vary drastically, leaving an unclear path to Gt scale.
Putting a price on carbon removal through voluntary and compliance markets will be a key enabler for project deployment. Governments must provide certainty through policies and financial incentives to reduce risk and enable private finance to flow. Only a concerted global effort will propel needed carbon removal investment.
Today’s cost range of US$30 - $1000 per t of CO2 removed guarantees a huge bill for net zero, but continued inaction will limit potentially massive cost reductions realised from technological advancement. Investment risks are evident, but the huge potential future market also creates opportunities.
This edition of Horizons reviews the current state of this nascent industry, the factors that will shape its evolution, and the steps governments, investors and developers must take to drive its essential rapid growth.
Download this white paper from Wood Mackenzie to find out more.