EU ETS Carbon Removal: Five Associations Demand Binding Targets and Early Offtake Deals

Five European carbon dioxide removal associations have jointly called for key changes to the EU Emissions Trading System (ETS) to scale up permanent CDR. The groups, representing over 170 companies, want the proposed 250 million tonnes of permanent removals by 2040 to become a binding legal obligation, not just an auction target. They also propose closing the funding gap by making carbon removal eligible for Carbon Contracts for Difference under the Industrial Decarbonization Bank. The associations urge the EU to sign long-term offtake agreements no later than 2029 and to allow ETS operators to buy permanent CDR directly. These changes aim to turn the ETS revision into a working market that can actually deliver the required removal volumes. The statement follows the European Commission's July 2026 proposal to auction additional allowances and procure permanent removals centrally.