Lennart Joos
Environmental Sustainability · Climate Change
#389
overall
Christiaan Gevers Deynoot
Is carbon removal demand faltering?
When the US sneezes, the world catches a cold — especially in climate innovation
Lennart Joos
Managing the uncertainty of Carbon Dioxide Removal
Environmental Sustainability
Carbon dioxide removal (CDR) is having its moment. Astronomical amounts of public and private investment have been flowing into the space lately. While this is a hopeful signal, the current business model focusing on the carbon price alone does not capture the complexity of the market. Ironically, the price of oil, as a proxy of the price for energy, also plays a crucial role in the financial feasibility of CO2-related projects. Finally, well-meant energy subsidies are interfering with incentives to kickstart the economical deployment of CCS and CDR. This all has serious implications in the current macro-economical context of energy scarcity and security because of the war in Ukraine.
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