A study led by the Potsdam Institute for Climate Impact Research finds the EU Emissions Trading System could scale carbon removal technologies while maintaining climate targets, with policy decisions expected by 2026.

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• Study suggests EU Emissions Trading System can support carbon dioxide removal technologies like direct air capture and BECCS without weakening emissions reduction goals
• Researchers estimate up to 60 million tonnes of CO₂ removals annually by 2050, depending on cost trends and technology deployment scale
• Cap-based carbon market ensures emissions limits remain intact, with higher carbon prices driving further reductions if removals fall short
• Carbon market could provide long-term financial certainty to investors, reducing dependence on public funding for climate technologies
• Risks include excessive biomass use for BECCS, which may impact land use and biodiversity if sustainability safeguards are not enforced
• Phased integration proposed with initial focus on monitoring systems, followed by gradual inclusion of removal credits and full integration by 2040
• European Commission expected to decide by 2026 on including carbon removals in EU carbon market framework