Bednar et al. (2023): Beyond emissions trading to a negative carbon economy: a proposed carbon removal obligation and its implementation

Johannes Bednar, Justin Macinante, Artem Baklanov, James Hall, Fabian Wagner, Navraj S. Ghaleigh, Michael Obersteiner IN: Climate Policy, https://doi.org/10.1080/14693062.2023.2276858

A policy framework based on ‘carbon removal obligations’ (CROs) has been proposed to respond to concerns about the financial and fiscal viability, the lack of incentives for CDR uptake, as well as the physical and technological risks associated with any climate mitigation scenario that relies on large scale CDR. Here the authors propose an updated and improved CRO policy framework, consisting of two core elements: the ‘principal CRO mechanism’ obliges emitters of a tonne of CO₂ to remove a tonne of CO₂ at the time of maturity of the CRO. On top of this obligation, CRO holders need to pay a fee for the temporary storage of CO₂ in the atmosphere.

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