Carbon Wrapped: 2025 in review

A lot happened with EU policy this year, so we’re looking back at some of the biggest moments – good and bad – of 2025 as part of “Carbon Wrapped”!

2040 Climate Target: The EU set a 90% net reduction by 2040, introducing a 5% flexibility for international carbon credits, and a first-ever link between permanent CDR and the EU ETS. However, by failing to set separate targets for emissions reductions and removals, a key chance to provide clarity to scale a diverse portfolio of CDR technologies was missed.

Clean Industrial Deal: The new roadmap for a competitive, net-zero Europe arrived, treating decarbonisation as an economic engine. With dedicated support for financing, the Clean Industrial Deal could harness the major economic opportunity presented by the emerging CDR sector.

Green Claims Directive: In a major setback, this anti-greenwashing proposal is now in regulatory limbo after facing political backlash. This stalls the regulatory clarity on how to use carbon credits needed to build trust in the CDR market and eliminate greenwashing.

European Competitiveness Fund: Proposed as a centrepiece of the 2028-2034 budget, this fund aims to bridge the EU’s innovation gap. Ensuring carbon removal is explicitly included in the final text will be key to scaling the technologies essential for meeting our long-term climate goals.

Circular Bioeconmy Strategy: The new strategy aims to turn biological resources into a driver of sustainable growth. Financial incentives within the strategy’s framework may accelerate the adoption CDR, transforming sequestered carbon into long-lived materials that support a circular economy.

In March, we held the first ever exhibition in the European Parliament, together with Negative Emissions Platform. Hosted by MEP Peter Liese, the exhibition showcased examples of permanent carbon removal solutions from across Europe. This was a landmark moment for CDR in the EU, and we are proud to have played a part.

This year also saw the launch of the latest edition of our Policy Tracker. With over 22 new policy entries, it now includes a funding database and extended country analyses. The Tracker helps policymakers, researchers, and industry stakeholders better understand existing policies, as well as our recommendations for how CDR can be effectively integrated into policy frameworks.

In 2025, we also launched our Carbon Removal Readiness Assessments (CRRA), publishing four country reports. Through partnerships with local organisations, the project analyses national CDR landscapes, including deployment potential, optimal portfolios of CDR pathways, and the steps needed to turn ambition into reality. The project will continue next year, with more country reports to come.

Thank you to everyone who supported and worked with us this year. We are excited to see what 2026 brings for carbon removal policy and development!

Here’s what we achieved in numbers:

• 1st ever EU Parliament exhibition
• 7 publications
• 15+ events
• 20+ consultation responses
• 25+ media mentions
• 300+ stakeholder meetings

The EU ETS Review will assess how negative emissions can be integrated into the system. The new Industrial Decarbonisation Accelerator Act and Industrial Decarbonisatin Bank have potential to support the scale-up of CDR technologies through financing and infrastructure creation.

Meanwhile, the EU Buyers Club seeks to create demand for carbon farming and permanent carbon removals signals.

We’re excited to hit the ground running in 2026, with many more publications, events, consultations meetings to come. Looking at forward, we will continue to tirelessly advocate for the scale-up for carbon removals to meet Europe’s climate goals!