Event:16 September | Carbon Removal Policy Summit
CDR Technology and Activity ClassificationsIntegrity and Accountability

CDR TECHNOLOGY AND ACTIVITY CLASSIFICATIONS

Lever last updated: 10 September 2026

A formal taxonomy classifying removal technologies and activities for consistent programme treatment.

Cost

Very low to Low

The authority or scheme owner pays for technical definitions, legal review, consultation, guidance and periodic updates. Adding CDR categories to an existing classification generally involves a limited additional workload. Creating a comprehensive system requires more expert work, coordination and support for agencies applying it. The cost covers classification and administration; funding awarded through programmes using the categories is assessed under those programmes.

Complexity

Very low to Medium

A fund or municipality can amend its own eligibility categories using existing authority. A broader classification requires technical agreement, legal drafting and consistent adoption by the agencies using it. Complexity increases where primary legislation, new assessment procedures or agreement across jurisdictions is needed.

Timeline

Very short to Medium

A limited amendment can affect the next procurement or grant round within a year. New national or international classifications may take two to five years to develop, adopt and incorporate into programmes before eligibility decisions change. These are planning estimates; publication alone is not the endpoint.

Integrity, Transparency & MRV

2–3

Innovation & Cost Reduction

N/A

Social & Environmental Safeguards

1–2

Energy, Transport & Storage Infrastructure

N/A

Inputs & Capacity

N/A

Demand Formation

1–2

Bankability and Cost of Capital

1–2

Policy Architecture & Coordination

2–3

Overview

Governments and scheme owners can formally classify CDR technologies and activities so they are recognised and treated consistently in the programmes that use those classifications. A taxonomy is a structured classification system; a category is a defined group within it, such as permanent carbon removal, temporary carbon storage or equipment for direct air capture. The implementing body defines the groups, the conditions for inclusion and which administrative decisions use them. Recognition can determine whether a manufacturer falls within a clean-technology programme, which certification rules apply to a removal activity or which projects a support scheme will consider. The lever establishes that common basis for decisions. The separate green-taxonomy lever covers eligibility for sustainable finance, while disclosure and green-claims rules govern reporting and communication.

Key Considerations

The first question is what is being classified and why. Technologies, economic activities, individual projects and carbon credits are different objects; each needs categories suited to the decision. A direct-air-capture equipment factory can qualify as clean-technology manufacturing without itself delivering removals. An activity should qualify as removal only where atmospheric or biogenic carbon is stored and the overall result is net removal. Definitions should distinguish removal from avoided emissions, and temporary storage from permanent storage. The responsible body should explain which programmes use each category, what additional conditions still apply and who resolves borderline cases. It should also provide a route for new methods to be assessed, so omission from an old list does not become a permanent barrier to entry.

Opportunities

Explicit recognition can prevent CDR projects and equipment suppliers from being excluded because a programme's categories were written before those activities emerged. A recognised technology category can give a manufacturer access to an existing administrative or support route; distinct removal categories can help a procurement programme specify what it will buy. Shared definitions also reduce repeated classification disputes between agencies, developers and investors. The practical value comes when programme rules use the categories to change eligibility or treatment. Simply adding a method to a descriptive list does little if the relevant application forms, guidance and decision procedures continue to exclude it.

Risks

Broad categories can treat unlike activities as equivalent, for example grouping fossil carbon capture and temporary carbon use with atmospheric carbon removal. Narrow lists can favour established technologies and exclude credible new approaches. Recognition may also be mistaken for proof of environmental quality, permission to operate or entitlement to funding. Conflicting definitions across agencies can leave a project recognised by one programme but rejected by another. Clear scope, evidence requirements, published classification decisions and regular updates reduce these problems. Scientific classification and policy preference should remain explicit, so calling a technology strategic does not imply that every use of it delivers a net climate benefit.

Monitoring and Evaluation

The body maintaining the classification should examine which programmes have adopted it and whether it has changed eligibility decisions. Useful evidence includes applications previously rejected for lack of a suitable category, time spent resolving classification disputes and the consistency of decisions across authorities. It should review emerging methods that remain unclassified, appeals and cases where an approved category was used to imply benefits it did not establish. Developers and programme administrators can identify definitions that are difficult to apply. Where investment or deployment increases, evaluation should distinguish the effect of recognition from new subsidies, procurement budgets or other policy changes.

Stakeholder Engagement

The authority or scheme owner defines the purpose and maintains the categories. Scientists and technical experts test whether the boundaries reflect actual carbon flows, storage characteristics and technology functions. Agencies administering funding, permitting or certification explain which decisions will use the classification and what evidence applicants must supply. Developers and equipment manufacturers test difficult cases, including activities spanning several categories. Investors identify classification gaps that prevent otherwise eligible projects from being considered. Environmental and community representatives scrutinise misleading equivalences and safeguard implications. Legal specialists ensure the classification fits the powers of the body adopting it.

Governance Levels

InternationalSupranationalNationalRegional / StateCity / MunicipalCorporate / IndustryPhilanthropy

International bodies and standards organisations can agree common categories for participating schemes. Supranational, national and regional authorities can establish classifications used by their laws and programmes. Municipalities, industry bodies and philanthropic funders can define narrower categories for procurement, shared standards or grant eligibility within their own mandates.

Implementation Strategies

  • The responsible body should identify where missing or inconsistent categories obstruct actual decisions. It should amend an existing classification where possible and specify which programmes will use the revised categories.

  • Technical and legal experts should define the object being classified, its inclusion conditions and the evidence required. They should distinguish technologies and equipment from verified removals, and recognition from the additional conditions for support or approval.

  • Programme administrators and applicants should test the categories against real examples, including emerging methods and activities that span several categories. Published examples and an appeal route should make borderline decisions understandable and consistent.

  • The implementing body should coordinate changes to programme guidance and application procedures, publish the effective date and transition arrangements, and review disputed or missing categories as technologies and evidence develop.

Case Studies

EU Net-Zero Industry Act recognises direct-air-capture equipment

The EU's Net-Zero Industry Act is a law supporting the manufacture of specified clean technologies. Its 2025 classification annex explicitly lists direct air capture within carbon-capture technologies, alongside relevant equipment components. The classification helps establish whether a manufacturing project falls within the Act's scope and can use its administrative support and permitting provisions. A manufacturer can therefore point to an explicit category when seeking the applicable treatment. Additional recognition is required for strategic-project status. This example concerns manufacturing technology, not certification of removed tonnes, and inclusion does not automatically award funding or a permit. The CDR lesson is that a precise technology list can remove an eligibility ambiguity that would otherwise impede investment in suppliers.

EU certification distinguishes removal and storage categories

The EU's 2024 Carbon Removals and Carbon Farming Certification Regulation establishes separate categories for permanent carbon removal, temporary storage through carbon farming, carbon storage in products and soil emission reductions. It requires the corresponding units to remain distinct. Temporary storage units are subject to expiry rules linked to monitoring, while permanent removals are treated differently. This classification gives certification schemes and buyers a common basis for identifying the activity and applying the relevant rules. It also prevents a soil-emissions reduction unit from being described as a removal merely because both arise on farmland. The law supplies a classification within a wider certification system; methodologies and verification are still needed to establish whether an individual activity qualifies and how many units it produces.

China's industrial catalogue links categories to policy treatment

China's National Development and Reform Commission, the central economic planning agency, coordinated the 2024 Industrial Structure Adjustment Guidance Catalogue. It groups listed technologies and activities into encouraged, restricted and eliminated categories, while compliant unlisted activities are permitted. Carbon capture, utilisation and storage engineering, equipment and technical services appear in the encouraged section. The catalogue asks departments to align fiscal, credit, land and other policies with this classification, giving administrators a common basis for differentiated treatment. Recognition guides the policies that implement support or restrictions; it is not an automatic grant. The example covers carbon management more broadly than CDR. A removal-specific version would need to distinguish net atmospheric removal from fossil emissions capture and short-lived carbon use.

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©2026 Alexander Mäkelä and Carbon Gap.
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