Carbon-removal credits licensed by EU get Nasdaq backing

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illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: Nasdaq and several corporate buyers are backing the first carbon-removal credits licensed under the European Union’s new framework, funding a large carbon-capture project in Stockholm operated by Stockholm Exergi

🔭 The context: The project uses bioenergy with carbon capture and storage (BECCS), burning biomass to generate heat and electricity while capturing the resulting CO₂ and storing it beneath the North Sea
• The deal marks the first publicly announced transaction under the EU’s new carbon-removal certification system, which policymakers hope will catalyze investment in a market potentially worth hundreds of billions of dollars

🌍 Why it matters for the planet: Carbon removal is increasingly viewed as essential for addressing residual emissions that cannot be eliminated through decarbonization alone
• However, critics warn that relying on removal credits could allow companies to delay or avoid cutting emissions, raising concerns about greenwashing and the credibility of voluntary carbon markets

⏭️ What’s next: The Stockholm BECCS facility is expected to begin operations in 2028, while the EU continues rolling out rules defining which carbon-removal technologies qualify under its framework
• If widely adopted, the system could help scale the still-nascent carbon-removal market

💬 One quote: “The EU’s methodology has the potential to become the leading market standard for durable carbon removals.”

📈 One stat: The world will need to remove around 10 billion metric tons of CO₂ annually by 2050 to limit global warming, according to the Intergovernmental Panel on Climate Change

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