A field guide to what governments, companies, and institutions can actually do to scale carbon removal.
THE SIX POLICY FAMILIES
No single instrument will build a gigatonne industry. Not a carbon price, not a subsidy, not a mandate. Carbon removal needs interlocking, positive policies that incentivise speed and scale. These six interdependent categories contain policy instruments that should be used to create a portfolio of tools that cover each other's blind spots.
Market Creation and Price Signals
Make a removed tonne visible and valuable.
4 sub-families, 29 levers
Capital Formation and Risk Sharing
Make projects bankable.
4 sub-families, 30 levers
Standards and Obligations
Make removals non-optional.
3 sub-families, 24 levers
Integrity and Accountability
Make tonnes real and trusted.
3 sub-families, 27 levers
Voluntary and Normative Drivers
Mobilise frontrunners ahead of regulation.
2 sub-families, 12 levers
System and Capacity Enablers
Build the foundations.
6 sub-families, 43 levers
BROWSE ALL LEVERS
Policy Lever Family (Select One)
Sub-family (Select One)
Governance Level (Select One)
Emissions Trading System
A mechanism capping emissions and allowing trading of allowances.
Cost
Low
Complexity
High
Timeline
Medium to Long
Integrity / MRV
2–4Innovation / Cost
2–4Safeguards
1–3Infrastructure
N/AInputs / Capacity
N/ADemand
2–5Bankability
2–4Policy / Coordination
2–4
Removal Compliance System
An annual purchase obligation requiring covered companies to buy verified permanent removals.
Cost
Low to Medium
Complexity
Medium to High
Timeline
Medium to Long
Integrity / MRV
3–4Innovation / Cost
2–4Safeguards
1–3Infrastructure
N/AInputs / Capacity
N/ADemand
3–5Bankability
2–4Policy / Coordination
3–4
Carbon Tax
A direct tax on carbon emissions to incentivise reductions.
Cost
Very low to Low
Complexity
Low to High
Timeline
Very short to Long
Integrity / MRV
1–2Innovation / Cost
2–4Safeguards
N/AInfrastructure
N/AInputs / Capacity
N/ADemand
2–4Bankability
2–3Policy / Coordination
2–3
Carbon price floor for removals
A minimum price guarantee for carbon credits to drive investment.
Cost
Low to High
Complexity
Low to High
Timeline
Very short to Medium
Integrity / MRV
N/AInnovation / Cost
2–3Safeguards
N/AInfrastructure
N/AInputs / Capacity
N/ADemand
2–4Bankability
3–5Policy / Coordination
2–3
Carbon Central Bank
A public institution managing removal credit supply and demand.
Cost
Medium to Very high
Complexity
High to Very high
Timeline
Long to Very long
Integrity / MRV
2–4Innovation / Cost
2–4Safeguards
1–3Infrastructure
N/AInputs / Capacity
N/ADemand
3–5Bankability
3–5Policy / Coordination
4–5
CDR Reserve
Strategic stockpiling of removal credits for future use.
Cost
Low to Very high
Complexity
Medium to High
Timeline
Short to Long
Integrity / MRV
2–3Innovation / Cost
2–4Safeguards
1–3Infrastructure
N/AInputs / Capacity
N/ADemand
3–5Bankability
3–4Policy / Coordination
2–3
Earmarking carbon revenues for removals
Dedicating carbon tax revenues to fund removal projects.
Cost
Low to Very high
Complexity
Low to Medium
Timeline
Very short to Medium
Integrity / MRV
N/AInnovation / Cost
2–4Safeguards
N/AInfrastructure
1–3Inputs / Capacity
1–3Demand
2–4Bankability
2–4Policy / Coordination
2–3
Personal Carbon Allowances
Tradeable carbon budgets for individual citizens.
Cost
Low to Very high
Complexity
Medium to Very high
Timeline
Short to Long
Integrity / MRV
1–3Innovation / Cost
N/ASafeguards
1–3Infrastructure
N/AInputs / Capacity
N/ADemand
1–4Bankability
N/APolicy / Coordination
2–4
Dedicated Fossil-Fuel Extraction Levy for CDR
A charge on fossil-fuel extraction earmarked specifically to finance carbon removal.
Cost
Low to Medium
Complexity
Medium to High
Timeline
Medium
Integrity / MRV
1–2Innovation / Cost
1–3Safeguards
1–2Infrastructure
1–3Inputs / Capacity
N/ADemand
1–4Bankability
2–3Policy / Coordination
2–3
Carbon Border Adjustment Mechanism (CBAM)
Tariffs on imports based on carbon content to prevent leakage.
Cost
Low to Medium
Complexity
Medium to High
Timeline
Short to Medium
Integrity / MRV
1–3Innovation / Cost
N/ASafeguards
N/AInfrastructure
N/AInputs / Capacity
N/ADemand
1–4Bankability
N/APolicy / Coordination
3–4
Bilateral Article 6 Agreements
International cooperation on carbon credit transfers.
Cost
Low to Medium
Complexity
High
Timeline
Short to Medium
Integrity / MRV
3–4Innovation / Cost
2–4Safeguards
2–4Infrastructure
1–3Inputs / Capacity
1–3Demand
2–4Bankability
1–3Policy / Coordination
3–4
Mechanisms for Enabling Corresponding Adjustments
Accounting mechanisms preventing double-counting of removals across borders.
Cost
Low to Medium
Complexity
High to Very high
Timeline
Medium to Long
Integrity / MRV
3–4Innovation / Cost
N/ASafeguards
N/AInfrastructure
N/AInputs / Capacity
N/ADemand
2Bankability
2Policy / Coordination
3–4
Legal Enablement for Cross-Border CO₂ Transport and Storage
Legal enablement for transboundary CO₂ storage and transport.
Cost
Very low
Complexity
High
Timeline
Short to Medium
Integrity / MRV
2–3Innovation / Cost
N/ASafeguards
2–4Infrastructure
3–4Inputs / Capacity
N/ADemand
N/ABankability
2–3Policy / Coordination
4–5
Developing IPCC Inventory Methodologies for CDR
Formal recognition of removal methodologies in national inventories.
Cost
Very low to Low
Complexity
High
Timeline
Medium to Long
Integrity / MRV
4–5Innovation / Cost
N/ASafeguards
N/AInfrastructure
N/AInputs / Capacity
N/ADemand
2Bankability
N/APolicy / Coordination
3–5
Market Linkage Agreements
Connecting national carbon markets for efficient pricing.
Cost
Very low to Low
Complexity
High
Timeline
Long
Integrity / MRV
2–4Innovation / Cost
N/ASafeguards
N/AInfrastructure
N/AInputs / Capacity
N/ADemand
2–4Bankability
1–3Policy / Coordination
4–5
Trade and Tariff Treatment
Trade policy treatment of removal-embedded goods and credits.
Cost
Very low
Complexity
Medium to High
Timeline
Medium to Long
Integrity / MRV
N/AInnovation / Cost
1–2Safeguards
N/AInfrastructure
N/AInputs / Capacity
2–3Demand
N/ABankability
N/APolicy / Coordination
2–4
Buyer/Offtaker Tax Credits
Tax credits for buyers who commit to purchasing removal credits.
Cost
Medium to High
Complexity
Medium
Timeline
Short
Integrity / MRV
N/AInnovation / Cost
1–3Safeguards
N/AInfrastructure
N/AInputs / Capacity
N/ADemand
3–5Bankability
1–2Policy / Coordination
1–2
Inclusion in green taxonomy
Classifying removals as sustainable investment under green taxonomies.
Cost
Low
Complexity
Medium
Timeline
Medium
Integrity / MRV
1–3Innovation / Cost
N/ASafeguards
2–3Infrastructure
N/AInputs / Capacity
N/ADemand
1–2Bankability
2–3Policy / Coordination
3–4
Insetting Incentives and Recognition
Incentives for companies removing carbon within their own value chains.
Cost
Low to Medium
Complexity
Medium to High
Timeline
Short to Medium
Integrity / MRV
2–3Innovation / Cost
1–3Safeguards
2–4Infrastructure
N/AInputs / Capacity
1–3Demand
2–4Bankability
1–2Policy / Coordination
3–4
Deposit-Refund Scheme for CO₂
Refundable deposits tied to verified carbon removal and storage.
Cost
Low to Medium
Complexity
High
Timeline
Medium to Long
Integrity / MRV
3–4Innovation / Cost
2–4Safeguards
1–3Infrastructure
2–4Inputs / Capacity
N/ADemand
3–5Bankability
3–4Policy / Coordination
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Policy Levers Library
Developed by Carbon Gap
Lead author: Alexander Mäkelä
Contributors: Alexis Dunand, Camille Fessard, Kaj Seeger, Ben Todd
©2026 Alexander Mäkelä and Carbon Gap.
Except where otherwise indicated, this work is licensed under the Creative Commons Attribution–NonCommercial–ShareAlike 4.0 International Licence.
Headline and barrier scores based on Carbon Gap analysis.