Market Creation and Price Signals
Make a removed tonne visible and valuable.
29 levers in this family
Markets are not discovered; they are declared. Somebody decides that a thing has value, writes that decision into rules, and capital follows. Nobody woke up wanting to buy sulphur dioxide allowances either, until a cap made them scarce and a registry made them real. A removed tonne of CO₂ is the strangest product ever sold: invisible, identical to every other tonne, and valuable only because an accounting system says it is. That is not a weakness. It is the design brief.
The levers in this category do the declaring. They make the value of a removed tonne tangible enough that a board can invest against it, a bank can lend against it, and a trader can price it.
- Carbon pricing and stabilisation instruments anchor expectations: emissions trading, carbon taxes, price floors, and the more radical proposals, carbon central banks and strategic reserves, that would manage the supply of removals the way monetary institutions manage the supply of money.
- International recognition and cross-border measures stop the value from leaking at the frontier: border adjustments, Article 6 agreements, treaty enablement and inventory methodologies decide whose ledger a tonne lands on when it crosses a line on the map.
- Demand-pull signals tilt the buyer's arithmetic: tax credits, taxonomy inclusion and deposit-refund designs that make choosing removals cheaper than ignoring them.
- Financial system levers wire the new asset into the machinery of finance itself: prudential treatment, market infrastructure and mandates for the great public pools of capital.
Sub-family (Select One)
Governance Level (Select One)
CARBON PRICING AND STABILISATION
9 levers
Emissions Trading System
A mechanism capping emissions and allowing trading of allowances.
Cost
Low
Complexity
High
Timeline
Medium to Long
Integrity, Transparency & MRV
2–4Innovation & Cost Reduction
2–4Social & Environmental Safeguards
1–3Energy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
2–5Bankability and Cost of Capital
2–4Policy Architecture & 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, Transparency & MRV
3–4Innovation & Cost Reduction
2–4Social & Environmental Safeguards
1–3Energy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
3–5Bankability and Cost of Capital
2–4Policy Architecture & 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, Transparency & MRV
1–2Innovation & Cost Reduction
2–4Social & Environmental Safeguards
N/AEnergy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
2–4Bankability and Cost of Capital
2–3Policy Architecture & 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, Transparency & MRV
N/AInnovation & Cost Reduction
2–3Social & Environmental Safeguards
N/AEnergy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
2–4Bankability and Cost of Capital
3–5Policy Architecture & 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, Transparency & MRV
2–4Innovation & Cost Reduction
2–4Social & Environmental Safeguards
1–3Energy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
3–5Bankability and Cost of Capital
3–5Policy Architecture & 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, Transparency & MRV
2–3Innovation & Cost Reduction
2–4Social & Environmental Safeguards
1–3Energy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
3–5Bankability and Cost of Capital
3–4Policy Architecture & 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, Transparency & MRV
N/AInnovation & Cost Reduction
2–4Social & Environmental Safeguards
N/AEnergy, Transport & Storage Infrastructure
1–3Inputs & Capacity
1–3Demand Formation
2–4Bankability and Cost of Capital
2–4Policy Architecture & 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, Transparency & MRV
1–3Innovation & Cost Reduction
N/ASocial & Environmental Safeguards
1–3Energy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
1–4Bankability and Cost of Capital
N/APolicy Architecture & 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, Transparency & MRV
1–2Innovation & Cost Reduction
1–3Social & Environmental Safeguards
1–2Energy, Transport & Storage Infrastructure
1–3Inputs & Capacity
N/ADemand Formation
1–4Bankability and Cost of Capital
2–3Policy Architecture & Coordination
2–3INTERNATIONAL RECOGNITION AND CROSS-BORDER MEASURES
7 levers
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, Transparency & MRV
1–3Innovation & Cost Reduction
N/ASocial & Environmental Safeguards
N/AEnergy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
1–4Bankability and Cost of Capital
N/APolicy Architecture & Coordination
3–4
Bilateral Article 6 Agreements
International cooperation on carbon credit transfers.
Cost
Low to Medium
Complexity
High
Timeline
Short to Medium
Integrity, Transparency & MRV
3–4Innovation & Cost Reduction
2–4Social & Environmental Safeguards
2–4Energy, Transport & Storage Infrastructure
1–3Inputs & Capacity
1–3Demand Formation
2–4Bankability and Cost of Capital
1–3Policy Architecture & 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, Transparency & MRV
3–4Innovation & Cost Reduction
N/ASocial & Environmental Safeguards
N/AEnergy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
2Bankability and Cost of Capital
2Policy Architecture & 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, Transparency & MRV
2–3Innovation & Cost Reduction
N/ASocial & Environmental Safeguards
2–4Energy, Transport & Storage Infrastructure
3–4Inputs & Capacity
N/ADemand Formation
N/ABankability and Cost of Capital
2–3Policy Architecture & 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, Transparency & MRV
4–5Innovation & Cost Reduction
N/ASocial & Environmental Safeguards
N/AEnergy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
2Bankability and Cost of Capital
N/APolicy Architecture & Coordination
3–5
Market Linkage Agreements
Connecting national carbon markets for efficient pricing.
Cost
Very low to Low
Complexity
High
Timeline
Long
Integrity, Transparency & MRV
2–4Innovation & Cost Reduction
N/ASocial & Environmental Safeguards
N/AEnergy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
2–4Bankability and Cost of Capital
1–3Policy Architecture & 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, Transparency & MRV
N/AInnovation & Cost Reduction
1–2Social & Environmental Safeguards
N/AEnergy, Transport & Storage Infrastructure
N/AInputs & Capacity
2–3Demand Formation
N/ABankability and Cost of Capital
N/APolicy Architecture & Coordination
2–4DEMAND PULL SIGNALS
7 levers
Buyer/Offtaker Tax Credits
Tax credits for buyers who commit to purchasing removal credits.
Cost
Medium to High
Complexity
Medium
Timeline
Short
Integrity, Transparency & MRV
N/AInnovation & Cost Reduction
1–3Social & Environmental Safeguards
N/AEnergy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
3–5Bankability and Cost of Capital
1–2Policy Architecture & Coordination
1–2
Inclusion in green taxonomy
Classifying removals as sustainable investment under green taxonomies.
Cost
Low
Complexity
Medium
Timeline
Medium
Integrity, Transparency & MRV
1–3Innovation & Cost Reduction
N/ASocial & Environmental Safeguards
2–3Energy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
1–2Bankability and Cost of Capital
2–3Policy Architecture & 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, Transparency & MRV
2–3Innovation & Cost Reduction
1–3Social & Environmental Safeguards
2–4Energy, Transport & Storage Infrastructure
N/AInputs & Capacity
1–3Demand Formation
2–4Bankability and Cost of Capital
1–2Policy Architecture & 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, Transparency & MRV
3–4Innovation & Cost Reduction
2–4Social & Environmental Safeguards
1–3Energy, Transport & Storage Infrastructure
2–4Inputs & Capacity
N/ADemand Formation
3–5Bankability and Cost of Capital
3–4Policy Architecture & Coordination
3–5
Feebate Schemes
Fee-and-rebate systems that reward low-carbon and removal-linked choices.
Cost
High to Very high on a gross basis
Complexity
Medium to High
Timeline
Very short to Medium
Integrity, Transparency & MRV
N/AInnovation & Cost Reduction
1–3Social & Environmental Safeguards
N/AEnergy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
3–5Bankability and Cost of Capital
1–3Policy Architecture & Coordination
N/A
Utility Green Tariffs with Removal Shares
Utility tariffs that channel a share of revenue into removal projects.
Cost
Low to Medium
Complexity
Low to Medium
Timeline
Short
Integrity, Transparency & MRV
1–3Innovation & Cost Reduction
N/ASocial & Environmental Safeguards
1–3Energy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
2–4Bankability and Cost of Capital
1–3Policy Architecture & Coordination
1–2
Recognition and Sale of Non-Carbon Outcomes
Rules letting CDR projects demonstrate and sell valuable outcomes beyond carbon removal.
Cost
Very low to Low
Complexity
Low to High
Timeline
Very short to Medium
Integrity, Transparency & MRV
2–3Innovation & Cost Reduction
N/ASocial & Environmental Safeguards
2–3Energy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
2–3Bankability and Cost of Capital
1–3Policy Architecture & Coordination
2–3FINANCIAL SYSTEM AND MARKET INFRASTRUCTURE
6 levers
Prudential and Collateral Treatment
Bank capital and collateral rules that recognise removal credits.
Cost
Very low
Complexity
Medium to High
Timeline
Medium to Long
Integrity, Transparency & MRV
1–3Innovation & Cost Reduction
N/ASocial & Environmental Safeguards
N/AEnergy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
N/ABankability and Cost of Capital
3–5Policy Architecture & Coordination
2–4
Priority-Sector Lending Eligibility and Requirements for CDR
Giving CDR a recognised place among the activities banks must finance through priority-sector lending rules.
Cost
Very low to Low
Complexity
Very low to High
Timeline
Very short to Medium
Integrity, Transparency & MRV
N/AInnovation & Cost Reduction
N/ASocial & Environmental Safeguards
N/AEnergy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
N/ABankability and Cost of Capital
2–4Policy Architecture & Coordination
2–3
Trading and Settlement Infrastructure for Removal Units
Systems helping buyers and sellers transact in recognised removal units.
Cost
Very low to Low
Complexity
Medium
Timeline
Short to Medium
Integrity, Transparency & MRV
2–4Innovation & Cost Reduction
N/ASocial & Environmental Safeguards
N/AEnergy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
1–2Bankability and Cost of Capital
3–4Policy Architecture & Coordination
2–4
Sovereign Wealth and Pension Mandates
Requiring public investment funds to hold removal-linked assets.
Cost
Very low to Low
Complexity
Medium
Timeline
Short to Medium
Integrity, Transparency & MRV
N/AInnovation & Cost Reduction
1–3Social & Environmental Safeguards
N/AEnergy, Transport & Storage Infrastructure
1–3Inputs & Capacity
1–3Demand Formation
N/ABankability and Cost of Capital
4–5Policy Architecture & Coordination
2–3
Sovereign Green Bonds and CDR-Eligible Debt Frameworks
Government debt instruments that fund removal deployment.
Cost
Very low to Low
Complexity
Low to Medium
Timeline
Very short to Short
Integrity, Transparency & MRV
1–2Innovation & Cost Reduction
N/ASocial & Environmental Safeguards
N/AEnergy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
N/ABankability and Cost of Capital
2–4Policy Architecture & Coordination
2–3
Public Sponsorship of Carbon Market Operators
Public capital or mandate given to a carbon-market operator to run trading infrastructure.
Cost
Low to Medium
Complexity
Medium to High
Timeline
Short to Medium
Integrity, Transparency & MRV
1–3Innovation & Cost Reduction
N/ASocial & Environmental Safeguards
N/AEnergy, Transport & Storage Infrastructure
N/AInputs & Capacity
N/ADemand Formation
1–2Bankability and Cost of Capital
1–2Policy Architecture & Coordination
2–3©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.