Recognizing the Value of Collaboration in Delivering Carbon Dioxide Removal

Abstract

<h2>Summary</h2> In delivering the Paris climate target, bioenergy with carbon capture and storage (BECCS) is likely to play an important role, both as a climate mitigation and a carbon dioxide removal technology. However, regional drivers of BECCS sustainability and cost remain broadly unknown and the regional attribution of a global CO₂ removal burden remains largely undetermined. This study explores the mechanisms behind cost-optimal BECCS deployment with evolving regional CO₂ removal targets and energy sectors to provide insights into the ways in which different regional players will interact as a function of their bio-geophysical endowments and their ability to trade these assets. An important finding is that inter-regional cooperation—in choosing the right burden-sharing principle to establish regional targets—and collaboration—in trading negative emissions credits and biomass—are central to sustainably and affordably meeting these targets. This multilateralism in biomass and carbon credits trading constitutes important value creation opportunities for key providers of CO₂ removal.