Maximizing climate impact with responsible carbon removal credits: a guide for corporate buyers

There is a broad and varied range of carbon dioxide removals (CDR), making it essential to carefully weigh different options when developing a carbon removal procurement plan. As a result, there is a need for more clarity on how to navigate these complexities and do this responsibly. This guide helps companies make informed decisions that maximize their climate impact. Below is an outline of the seven key principles for responsible carbon dioxide removals (CDR) investment strategies as outlined in the guide.

1. Understanding the Types of Carbon Removal Technologies

Carbon removal technologies vary widely in their effectiveness, feasibility, and sustainability. Some of the primary methods and their risks include:

• Afforestation and Reforestation (AR): Planting trees to absorb CO2 is a well-known method, but it's important to note that these solutions have lower durability and are vulnerable to disturbances like fires or pests.
• Biochar: This involves converting biomass into a stable form of carbon that can be buried to sequester CO2 for long periods. Biochar offers moderate durability and immediate climate impact, but it also carries some uncertainties around long-term soil impacts.
• Bioenergy with Carbon Capture and Storage (BECCS): BECCS combines energy production with carbon capture, offering high durability and significant climate impact when done without agricultural expansion.
• Direct Air Capture (DAC): DAC technologies physically capture CO2 from the air and store it permanently. They offer the highest durability but are currently among the most expensive options.

Choosing the right technology depends on your organization’s priorities including budget, desired impact, and risk tolerance.

2. Evaluating the Durability and Permanence

Durability and permanence are key factors in the effectiveness of carbon removal. These factors describe the planned duration or risk of storage reversal of a carbon removal. Technologies like DAC and BECCS offer “permanent” solutions, with storage times exceeding 10,000 years. In contrast, options like AR and soil carbon sequestration have much shorter durations, often less than a century, and are more susceptible to reversal. When considering removal credits, "permanent" solutions offer the closest like-for-like compensation for residual fossil emissions.

3. Considering the Feasibility and Scalability

The feasibility of implementing carbon removal technologies varies. For example, DAC is highly scalable and can be deployed in various locations, but it requires significant energy inputs and investment. BECCS, while also scalable, is limited by the availability of sustainable biomass and suitable storage sites. On the other hand, biochar and AR are more feasible on smaller scales but may not offer the same level of impact. It’s crucial to assess the scalability of these technologies in relation to your organization’s goals and the broader climate objectives.

4. Assessing Side Impacts and Co-Benefits

Carbon removal technologies can lead to a range of environmental, economic, and social side impacts, both positive and negative. For instance, BECCS, if not managed properly, can lead to deforestation and biodiversity loss. However, technologies like biochar can improve soil health and agricultural productivity, offering economic benefits to local communities and afforestation and reforestation (AR) projects can have positive biodiversity impacts if reforestation occurs on previously forested land. It's essential to weigh these side impacts and co-benefits when choosing which removal credits to purchase.

5. Aligning with Industry Standards and Best Practices

As the voluntary carbon market (VCM) continues to evolve, industry standards and best practices are becoming increasingly important. Aligning your carbon credit purchases with frameworks such as the Science Based Targets initiative (SBTi) and adhering to rigorous MRV (measurement, reporting, and verification) standards ensures the credibility of your investments. Additionally, participating in industry collaborations and staying informed about emerging technologies and methodologies will help you make responsible purchasing decisions.

6. Integrating Carbon Removals into a Broader Climate Strategy

Finally, it’s vital to view carbon removal credits as part of a broader climate strategy. They should complement, not replace, deep decarbonization efforts within your organization. Prioritize reducing your emissions at the source and use carbon removal credits to address residual emissions that cannot be eliminated. This approach aligns with the latest climate science and ensures your organization contributes to global efforts to limit warming to 1.5°C.