Can Carbon Removal Go Mainstream? Europe Bets Big

The EU aims to include carbon removals in its ETS by 2036, jumpstarting a wave of CCUS investment and industrial momentum.

31 Mar 2025

A sweeping policy shift by the European Commission is supercharging Europe’s carbon capture ambitions and setting the stage for a new era of industrial decarbonization.

Brussels is moving to allow high-quality carbon removal credits into the EU’s Emissions Trading System (ETS) starting in 2036. That means companies could use certified removals, like permanent carbon storage, to meet up to 3 percent of their emissions targets. If adopted, this would mark the first inclusion of engineered removals in the ETS since 2021 and could open the door to credits from beyond EU borders.

Certification rules defining what counts as “high-quality” are due by mid-2026. But the message is already clear: real money is now flowing into carbon capture, utilization, and storage (CCUS) as the private sector positions itself for a compliance-grade market.

In June, Heidelberg Materials sold out the entire 2025 output of its evoZero cement, produced using carbon capture at its Norwegian plant. The facility feeds into Northern Lights, a high-profile carbon storage project operated by Equinor, Shell and TotalEnergies.

“This shows that demand for real climate solutions is here,” said CEO Dominik von Achten, calling the EU’s move “a game-changer for carbon markets.”

To ease the financial leap, the EU is weighing tools like Carbon Contracts for Difference, which would lock in prices for captured carbon and help companies shoulder steep up-front costs.

Skeptics, however, warn that carbon removals must not become a substitute for actual emissions reductions. Others raise concerns about verifying credits generated outside the EU. In response, Brussels is preparing strict certification standards to guard against greenwashing and protect the system’s credibility.

Even with the caveats, the shift marks a turning point. Once viewed as a long-shot technology, CCUS is fast becoming a cornerstone of Europe’s climate playbook. As regulation sharpens and demand builds, what was experimental is now edging toward essential.