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Targeted investments essential to scale CDR and unlock economic benefits​

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CDR enables net zero and unlocks vast co-benefits

Carbon dioxide removal (CDR) is indispensable to achieving national and international net zero targets. While mitigation through emissions reduction remains the priority, CDR is the only mechanism capable of neutralizing unavoidable residual emissions and addressing legacy emissions already in the atmosphere.

Overview of economic and societal benefits of CDR

Climate change mitigation

Up to 9 Gigatons of CDR demand by 2050 to meet 1.5°C target

Environmental & public health benefits

10% crop yield increase on average by applying Biochar

High-skilled jobs creation

Up to 190k jobs created in Germany by 2050 to meet 1.5°C target

Innovation catalyst

Up to €152B economic potential in plant equipment & technology in 2050 to meet 1.5°C target

"Without a steep ramp-up by the late 2020s, Germany will not have the removal capacity in place to meet its 2045 net zero target."

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€6B investment until 2030 to put Germany on track for CDR needs

To deliver the CDR volumes required for a 1.5°C-compatible pathway, Germany needs to mobilize large-scale investments over the next two decades. These investments are not limited to CDR credit generating processes but extend across energy, transport, and storage infrastructure.

  • Germany has an expected need to remove 49–229 Mt of residual CO₂e in 2045
  • All scenarios for Germany require a significant CDR volume ramp-up to achieve net zero
  • German CDR portfolio 2045 likely to consist of CDR with varying permanence
  • Germany has investment need of ~€6B by 2030 and ~€90B by 2045 in 1.5°C-compatible scenario
€0B

"The required investment of €5.7B by 2030 is less than 1% of the ~€860B and ~€1,400B identified in the Climate1 and Transformation2 Paths studies."

1 BDI & BCG, 2021.
2 BDI, BCG & IW, 2024.
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