1. Carbon dioxide removal (CDR) is an integral component of climate change mitigation. Carbon dioxide removal is essential for meeting global climate goals - given the divergence between emission reduction targets and our current policies and actual progress, and due to the long-term need for substantial negative emissions. While the Paris Agreement has galvanized global commitment to limit warming to 1.5°C, achieving this requires CDR to neutralize residual emissions that are hard to abate, such as in the cement sector. All IPCC pathways compatible with 1.5°C or 2°C include CDR to achieve a “net zero” emissions world. To meet the 1.5°C pathway, CDR needs to reach approximately 9 gigatons of CO₂­­ annually by 2050.

2. CDR methods have a unique combination of advantages, co-benefits and limitations. There are a broad range of CDR methods which can be classified into three categories: nature-based removal (e.g., afforestation), enhanced natural processes (e.g., enhanced (rock) weathering or biochar carbon removal), and technology-based removal (e.g., bioenergy with carbon capture and storage). Each method varies in technology intensity, permanence, scalability, ease of monitoring, and cost. For instance, while most nature-based solutions are immediately implementable and cost-effective, technology-based solutions offer higher durability but are currently more expensive and less technologically mature.

3. CDR can become a global nearly trillion Euro industry. The global economic potential of CDR could reach €470-940 billion per year by 2050 in a 2.0°C and a 1.5°C pathway, respectively—at par with today’s global airline industry. This potential hinges on significant cost reductions across CDR methods, driven by technological advancements and economies of scale. For example, costs for direct air carbon capture and storage (DACCS) and bioenergy with carbon capture and storage (BECCS) could decrease by 50-60% compared to 2023 levels, while enhanced (rock) weathering (ERW) and biochar carbon removal (BCR) could see reductions of 35-65%. Conversely, nature-based methods might see cost increases due to rising input prices, land competition, and stricter monitoring and reporting requirements.

4. Europe, and especially Germany can be catalysts for a thriving CDR industry. The EU-27 and Germany, in particular, are uniquely positioned to lead the global CDR market due to their technological prowess, robust industrial base, and progressive climate policies. Germany’s commitment to net-zero emissions by 2045 and its influential role in European climate policy further underline its leadership potential. The European (German) CDR industry could grow to €220B (€70B) per year by 2050, creating up to 670K (190K) jobs.

5. Bold and decisive measures are needed now across stakeholder groups. As a society, we are currently not on a path to realize the full potential of CDR. While there are clear signs that interest in CDR is constantly growing, much more effort is needed to harness its benefits fully. Achieving the full potential of CDR requires concerted efforts from policymakers, industry, buyers, and investors. A 15-point action plan outlines necessary measures to overcome current roadblocks, such as regulatory uncertainty, high costs, technical challenges, and limited funding to enable large-scale CDR deployment. Actions range from specific policy measures over technological advancements to early, long-term offtake commitments and tailored funding mechanisms that could jointly support the swift uptake of the global CDR industry.