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The Drill-Down on CDR Technologies: Qualifying for Carbon Credits and Integrations with Other Climate Technologies

In the previous article, we explored renewable energy as a practical approach to mitigating carbon emissions. Now, let's delve into carbon dioxide removal as an additional solution that can effectively eliminate carbon dioxide from the atmosphere.

Recently, JP Morgan announced its significant investment in carbon dioxide removal (CDR) technologies that will eliminate and store 800,000 metric tons of carbon dioxide from the atmosphere. The deal is considered one of the largest procurements in CDR technology to date, with its $200 million valuation (Segal, 2023). JP Morgan’s investments concentrate on direct air capture industry, biomass carbon removal and storage with startups CO280 Solutions and Charm Industrial, and Carbon Removal Technology acceleration with Frontier, a carbon removal buyer coalition (Segal, 2023).

CDR, as defined by the Intergovernmental Panel on Climate Change (IPCC), are “technologies, practices, and approaches that remove and durably store Carbon Dioxide (CO₂) from the atmosphere.” It is also important to note that CDR cannot replace instant emission reductions but is part of the solution to reducing global warming (IPCC, n.d.). With the nearing forecast to reach 1.5˚ C global temperature, carbon trading and imposed carbon taxes are not enough to regulate carbon emissions. A massive scale of carbon removal from the atmosphere is required to limit temperature rise.

What are 5 methods of carbon dioxide removal?

As carbon and GHG emissions continue to increase rapidly, CDR technologies should be able to immensely decarbonize the atmosphere and use the stored carbon for other purposes. Although carbon credits are intended to limit carbon emissions, the window for climate action is diminishing, and economies will have to ramp up the implementation of several clean technologies and solutions to address global warming, which includes CDR. There are various ways to remove carbon emissions from the atmosphere using technological and natural means, which are explained below:

Direct Air Carbon Capture and Storage (DACCS)

As mentioned in our previous post on Carbon Commitments, Direct Air Carbon Capture and Storage (DACC) captures carbon emissions through direct air capture technologies and stores permanently. Climeworks, a DACCS technology enterprise, explains the process in three steps:

1.   Air that is accumulated through a fan inside the collector is filtered for carbon dioxide particles.

2.  Once the filter is filled with CO₂, the collector is closed, and the temperature rises to 100˚C.

3.  This allows the filter to release the CO₂, which is permanently stored underground.

It is a very efficient way to capture carbon immediately and massively, as one collector collects the same amount as about 20,000 trees can consume. Aside from JP Morgan, Microsoft and Shopify have also invested in direct air capture to offset their carbon emissions (Climeworks, n.d.).

Bioenergy Carbon Capture and Storage (BECCS)

BECCS, as defined in our previous post, is the capture of carbon dioxide from an energy pathway and is permanently stored. Biomass, renewable material derived from plants and animals, is used as an energy source. It is captured and stored once it releases carbon dioxide through a combustion and conversion process (Global CCS Institute, 2019). It is one of the most effective CDR technologies because aside from capturing carbon emissions, it also can replace fossil fuel-powered sources. The combustion process allows for biomass to become the fuel supply to produce heat for use in industrial production, such as cement, pulp, and paper-making. The conversion process through digestion or fermentation produces liquid fuels such as bioethanol (Global CCS Institute, 2019).

Carbon Sequestration through Biochar

As mentioned in another post, biochar is a form of refined agricultural waste that stores CO₂ for hundreds of years, providing a carbon sink for agrarian lands. This charcoal-like matter is formed through a process called pyrolysis - burning biomass in the absence of oxygen at very high temperatures (US Biochar Initiative, n.d.). Although biochar is a possible way to remove carbon, its industrial readiness, measurement of carbon removal, and limitations have yet to be considered.  

Blue Carbon Management

Blue Carbon refers to the carbon captured by coastal and marine ecosystems. These carbons are sequestered and stored among the plants and sediments below sea level. The Blue Carbon Initiative, a global program composed of governments, research institutions and NGOs, has reported that 83% of the global carbon cycle is dispersed in the ocean, and only 2% of the total ocean area is covered by coastal habitats. For blue carbon to be absorbed and contribute to reducing the global temperature, we must preserve and restore our coastal plants, such as mangroves, salt marshes, and seagrasses. Similar to terrestrial plants, aquatic plants need CO₂ with the help of the sun to produce energy which undergoes a process called photosynthesis. These aquatic plants also serve as habitats for sea animals and release oxygen needed for marine life to survive. However, seagrass meadows are vanishing by 7% yearly due to climate change and pollution, allowing more CO₂ to float in the sea (Earth.org, 2023). The ocean may be the largest carbon sink if we work on repairing coastal ecosystems and cleaning up our waters.

Afforestation and Reforestation

These nature-based methods are a fundamental and straightforward path to carbon dioxide removal. Afforestation is the process of growing trees and forests in areas where these have not yet existed, while reforestation is the rehabilitation of existing forests through replanting trees. Although it may take time and substantial effort to address excess carbon emissions, it is a proven solution to carbon removal.

These CDR technologies can remove gigantic amounts of carbon emissions from the atmosphere, which may be seen in the illustration below:

Figure 1. Amount of Carbon Captured by CDR Technologies

Qualifying for Carbon Removal Credits

In one of our previous posts, we have discussed that carbon credits are issued by governments to businesses that have reduced/not created at least 1 ton of CO2 emissions from their operational procedures (1 ton = 1 carbon credit). Given the scalability and permanence of carbon removal by CDR technologies, there is another identifier for these projects – carbon removal credit (CRC) which are a subset of carbon offsets. CRC is given to organizations or businesses that have removed 1 ton carbon dioxide from the atmosphere. While Verra and Gold Standard have already set criteria for validating the reductions from offset projects, CRC does not yet have a system or body that verifies the carbon removed from CDR solutions. Currently, the EU is proposing a framework for issuance of Carbon Removal Certificates to help meet climate neutrality by 2050 (European Commission, n.d.). The proposed criteria is to determine high-quality carbon removals and its authenticity in verifying carbon removed from the atmosphere with the assistance of third-party verification and certification. The European Commission (2022) follows the QU.A.L.ITY framework to evaluate carbon removal projects illustrated in Figure 2.

Figure 2. QU.A.L.ITY Criteria (European Commission, n.d.)

Quantification – Carbon removal activities must be measurable and deliver explicit carbon removal benefits. It should result to a net carbon removal benefit in a sense that carbon removed should be greater than GHG emissions that were produced in the activity implementation.

Additionality – The carbon removal initiatives need to adhere to a standardized baseline that accurately reflects proposed standard practices, regulatory requirements, and market conditions specific to the respective activity.

Long-Term Storage – The captured carbon must be securely stored for an indefinite period and ensure minimal risk of carbon release. Certificates will be issued to account for the duration of carbon storage, and the identification of permanent storage and temporary storage.

Sustainability - Carbon removal activities should either have a neutral effect or generate co-benefits for other environmental objectives, including but not limited to biodiversity conservation, climate change adaptation, GHG emission reduction, or zero pollution.

The effectivity of carbon removal certificates has yet to be announced as the European Parliament and the Council, and an Expert Group are in the process of laying out the certification methodologies for the different carbon removal activities.

Relationships with Other Climate Strategies

CDR technologies are a promising solution to keeping the global temperature within the 1.5 limit, but they should go hand-in-hand with strategies that significantly reduce carbon emissions.

Renewable Energy Synergies

As mentioned in our post on clean energy, coal accounts for 20% of global greenhouse gas emissions. However, some technologies have been developed to replace coal as an energy source and effectively remove carbon emissions, such as direct air capture and storage and bioenergy carbon capture and storage.

Carbon Offsetting with Electric Vehicle Adoption

The switch to electric vehicles from conventional internal combustion engine vehicles should be able to reduce carbon emissions drastically, as the transportation sector is one of the largest contributors to greenhouse gas discharges. However, for sectors that are challenging to decarbonize, such as heavy industry and aviation, CDR technologies can potentially offset the remaining carbon dioxide they emit.

Collaborative Solutions

Together with clean technologies, CDR technologies can create efficient approaches to climate change. CDR technologies such as afforestation and reforestation can benefit from clean technologies that feature advanced forest management – efficient irrigation, monitoring of the forest’s health, and precision planting.

Recover nature-based CDR technologies through Sustainable Practices

Sustainable practices such as protecting biodiversity, proper waste management, and conserving ecosystems can help flourish our natural carbon sinks that play a role in removing carbon dioxide from the atmosphere. As these natural carbon sinks are preserved with sustainable practices, we can amplify the success of these CDR technologies.

Addressing climate change requires significant effort and investment in various strategies, including the adoption of carbon dioxide removal (CDR) technologies. However, as individuals, we also have a crucial role to play in protecting the environment and combating climate change. We must take initiative and contribute in our own unique ways, as our collective efforts will lead to significant improvements for a cleaner and more sustainable Earth.


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