The Case for Carbon Removal in the EU Decarbonisation Bank
Pragmatic, Possible and Pivotal – Five steps to integrate carbon dioxide removal into Europe's biggest industrial decarbonisation effort.
Europe's path to net-zero can't succeed without carbon removal — yet it's missing from the EU's biggest industrial decarbonisation effort. As the EU readies a €100 billion Industrial Decarbonisation Bank to drive its green transition, this new report makes the urgent case for embedding carbon dioxide removal (CDR) at its core. From engineered to nature-based solutions, CDR is essential to balance hard-to-abate emissions and secure climate credibility. We offer five pragmatic steps to integrate removals — from a dedicated pilot facility to better coordination and finance toolkits — ensuring Europe stays competitive and climate-responsible in a fast-evolving global race.
1. Explicitly include CDR in the Bank's mandate
The Bank's core documents should clearly state that engineered and nature-based removals are eligible, aligned with the EU's CRCF Framework, and include a checklist to ensure projects deliver verifiable and durable removals.
2. Establish a CDR-dedicated pilot within the Bank
A €1–2 billion Carbon Removal Pilot Facility should be launched to test instruments like CCfDs, loan guarantees, and blended finance with clear milestones and transparent publication of results to inform scaling.
3. Coordinate with existing instruments
Operational pathways should be established to link Horizon Europe, the Innovation Fund, InvestEU, and EIB financing, ensuring seamless project progression and reducing administrative burdens for developers.
4. Engage national development banks
A structured dialogue should begin with key national banks to align co-investment strategies, standardize financing structures, and support shared CO₂ infrastructure that benefits both CDR and broader carbon management.
5. Create an internal EU task force and financing toolkit for carbon removal
A cross-institutional task force should be formed to produce financing guidelines, templates, and toolkits that translate technical knowledge into accessible, actionable formats to build institutional capability.
By Eloisa Viloria and Alexander Mäkelä