👀 Are you ready to dive into the future of climate action? 🌱

📑 A groundbreaking policy framework called the Carbon Removal Obligation (CRO), has been detailed in a recent paper entitled "Beyond Emissions Trading to a Negative Carbon Economy" which tackles concerns about the financial and fiscal viability of large-scale #CDR uptake.

Here's what you need to know:

🤑 CRO at a Glance: A CRO would mandate that for every tonne of CO2 emitted, an equivalent amount must be removed from the atmosphere by a set maturity date. It’s like a financial debt for carbon emissions, ensuring the polluter pays and contributes to reversing their impact.

⚖️ In Practice: Imagine a world where every industry emitting CO2 is accountable for removing their emissions entirely. Industries would obtain CROs at the point of emission and later fulfil these obligations through various carbon removal strategies or face financial penalties.

💼 Implementation: CROs would integrate with financial systems, leveraging the roles of central and commercial banks for issuance and management. This would transform carbon debt into a line item in financial sheets, as tangible as any loan or obligation.

🌍 Early Adopters: The CRO policy framework would need to be initiated by environmentally progressive governments, possibly in the EU or certain states in the USA. Pioneering industries could be energy, manufacturing, or any sector with significant carbon footprints.

📈 Why It Matters: It aligns with the urgent need for large-scale carbon dioxide removal (CDR) to meet global warming thresholds. Of course, key for the policy would be a common framework for evaluating removal credits. This is why the CRCF is so important, if done right, it could be at the centre many revolutionary policies.

📚 Dive into the detailed proposal in the paper:  "Beyond Emissions Trading to a Negative Carbon Economy" here: https://lnkd.in/d2wj6CGE

👏 Well done to authors Johannes Bednara, Justin Macinante, Artem Baklanova, Jim Hall, Fabian Wagner, Navraj Ghaleigh, and Michael Obersteiner for providing this framework.

🤔 How could your industry adapt to a CRO framework? What are the potential challenges and opportunities you foresee?

#CarbonRemoval #NetZero #ClimateChange

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