TOMORROW - Scaling Carbon Removal through the EU Carbon Market

Research evidence excerpt

TOMORROW - Scaling Carbon Removal through the EU Carbon Market

EUROPE | Sustainability & Transition

Strategy May 12, 2026

TOMORROW - Scaling Carbon Removal

through the EU Carbon Market

As the EU approaches its 2040 climate target, carbon removals will play

an increasingly central role. Even with rapid emissions cuts, high-integrity

removals are needed to address residual emissions from hard to abate

sectors. We are pleased to welcome Darius Sultani, Researcher at the

Potsdam Institute for Climate Impact Research, to discuss how the EU

carbon market can help scale carbon removal. Join us 2PM UKT / 3PM

CET, Wednesday, 13 May 2026. REGISTER

Background

The European Commission is set to decide by mid-2026 whether to integrate carbon dioxide

removal (CDR) into the EU Emissions Trading System – a decision that could unlock a €20–

135 billion compliance market by 2040 and reshape Europe's path to climate neutrality.

Darius Sultani’s joint study with Researchers at the Potsdam Institute, “How the EU can utilize

its carbon market to scale up carbon dioxide removal”, available on elsevier.com, quantifies

the scale of this opportunity. The study finds that the EU ETS could incentivise significant

annual removals by 2050, primarily through direct air capture (DAC) and bioenergy with carbon

capture (BECCS).

For investors, the stakes are high. Carbon prices are projected to stabilise around €400 per

tonne by mid-century following CDR integration, providing long-term price signals that could

de-risk capital deployment across the removal value chain.

Listen in to hear more about the study's findings, the policy discussions surrounding the ETS

in Brussels under debate in Brussels, and the strategic implications for carbon markets, and

industrial decarbonization.

Discussion Topics: