ConsultationDriving demand
Four recommendations for the Industrial Decarbonisation Accelerator Act
The IDAA poses a key opportunity for scaling carbon removal and building the key climate industry to reach climate goals
The Industrial Decarbonisation Accelerator Act (IDAA), as a core component of the Clean Industrial Deal (CID), offers a unique opportunity to future-proof European industry while scaling permanent carbon dioxide removal (CDR).
Carbon Gap proposes four targeted measures to integrate permanent CDR into the IDAA framework:
- Integrate CDR in carbon intensity labels. Recognise permanent removals in product carbon footprints to drive demand for net-zero industrial materials and enable access to IDAA support.
- Introduce sectoral interim CDR milestones. Set voluntary, then mandatory milestones for permanent CDR uptake to provide clear market signals and avoid deployment bottlenecks.
- Establish EU Contracts for Difference (CfDs) for CDR. Establish EU-level CfDs to close the cost gap for high-integrity permanent removals and unlock private investment.
- Streamline permitting through EU harmonisation. Support Member States in aligning permitting standards and timelines to accelerate deployment while respecting local authority.