DACMA signed the DAC coalition position paper

Position paper about integration of carbon dioxide removals (CDR) into the EU Emissions Trading System (EU ETS)

european flag in front of industry emissions

The DAC Coalition is a nonprofit organization founded in 2022 with meanwhile over 110 companies, organizations, and institutions working to advance and accelerate the deployment of direct air capture technologies.

The coalition supports high-quality, measurable, verifiable, and permanent carbon dioxide removals (CDR) into the EU Emissions Trading System (EU ETS) to help scale the industry and meet net zero goals. A well-designed integration could create a stable, long-term market for permanent CDR.

However, relying solely on ETS integration without additional support will not be enough to ensure widespread deployment and use.

According to the position paper, there are the following challenges to integration:

„These challenges include extended sale cycles due to limited familiarity with the product, the nascent state of CDR credit transactions, lack of market liquidity, evolving science around permanent removals pathways, and dependency on climate policy to motivate purchases.“

Accordingly, the position paper sets out all the important key features that should be ensured when integrating carbon dioxide removals (CDR) into the EU Emissions Trading System (EU ETS) such as:

Only removals that isolate CO2 from the atmosphere on the timescale of the lifetime of CO2 emissions should be eligible for integration in order to maintain the integrity of the ETS.
All tonnes of CO2 removed are measurable and verifiable
Define a CDR sub-mandate that increases over time
Maintain the gross cap on emissions

Read about all key features and the full position paper HERE:

title position paper CDR Integration into EU ETS Position by DAC coalition

Trompoukis, C. et al., 2025, The role of Direct Air Capture technologies in the EU’s decarbonisation effort

We at DACMA are very pleased to be mentioned in this high-profile study on Direct Air Capture technologies with 4 of our DAC projects worldwide:

An analysis of the potential, cost-effectiveness, risks, investment needs as well as technological, economic, administrative and legal prerequisites and requirements

Direct air capture units in operation to capture pollution and Co2 clean energy focus — Cover image used under licence from Adobe Stock

Abstract

„This study analyses the development, costs, future potential, and role of Direct Air Capture (DAC) and subsequent storage (DACCS) technologies in Europe’s decarbonisation strategy. While current costs are high and uncertain, DAC and DACCS are expected to become more economically viable through technological improvements and scaling. Given the environmental trade-offs of various CO₂ removal methods under development, including DACCS, a diverse portfolio will be needed. Our study shows that DAC and DACCS can play a key enabling role in achieving the EU’s net- zero targets — provided that clear policies, financial incentives, streamlined regulation, and sustained investment in R&D are in place, alongside access to affordable renewable energy, proximityCO₂ storage sites, skilled labour, and shared infrastructure.“

(…)

„CO2 removals are essential to supplement drastic emission reductions in order to reach the EU’s climate change mitigation targets and global goals to stabilise climate warming at 1.5-2 °C degrees. However, emission reductions need to be prioritised: if the global emission budget is exceeded initially, and removals are applied afterwards, a decline in the temperature cannot be guaranteed.

CO2 removals can be achieved through various methods, ranging from nature-based (e.g. afforestation and reforestation) to engineered solutions. (…) Among these, DACCS and Bioenergy with Carbon Capture and Storage (BECCS) are considered as the most promising methods for delivering large-scale, permanent CO2 removals. Both BECCS and DACCS will likely be needed to reach sufficiently large volumes of permanent CO2 removals in Europe. If tight constraints are set on the availability of sustainable biomass for BECCS, the demand for DACCS will likely increase.“