CAKE at the ERCST EVENT on Carbon Dioxide Removals

On April 23rd, 2024 Robert Jeszke, CEO of CAKE took part in the conference “EU ETS: Carbon Dioxide Removals CDRs – Public Event” organized by the The European Roundtable on Climate Change and Sustainable Transition (ERCST).

This conference focused and tried to explore the role of negative emissions and carbon removal technologies within the EU ETS framework and discuss the potential constraints that could shape their integration, assuming that CdR works from a technological point of view.

During the meeting Robert Jeszke took part in the disussion and presented some of the the results of the latest LIFE VIIEW 2050 analysis in this area. The exchange of insights and perspectives on integrating carbon removals into the EU ETS and exploring various integration models was truly enriching. The disussion focused on the relevant issues and/or benefits of the integration of carbon removals in the EU ETS (I panel) and on the the possible models for the integration of carbon removals into the EU ETS (II panel).

Below the are interesting insights by Robert Jeszke, CEO of CAKE:

“There is rather no issue with merging removals with EU ETS and ETS2. The question is how we can integrate it. The driver of removals is ETS and CO2 prices. We need to maintain the competitiveness of the EU economy. Providing more subsidies to removals means avoiding high CO2 costs. These are three main issues in integration of CDR’s. Our recent analysis shows the macroeconomic and CO2 price impact of introducing removals. We need to consider how to combine the whole ETS architecture after 2030. EU ETS will stop issue EUA’s in 2040. The “problematic” sector is agriculture due to very high abatement costs & production losses. Inclusion of removals into EU ETS and safeguard of the EU economy is crucial in the context of high emission costs and carbonleakage issue. We need European Central Carbon Bank (ECCB) as a safety mechanism to ensure liquidity and stability in EU ETS and CO2 market, and also to ensure smooth timeline removals integration. ECCB could deliver it.”

Thank you for the invitation Andrei Marcu (ERCST – European Roundtable on Climate Change and Sustainable Transition) and chance to contribute to such an important dialogue alongside esteemed colleagues and experts in the field: Ruben Vermeeren (European Commission), Fabien Ramos (EU Environment and Climate), Eadbhard Pernot (Zero Emissions Platform), Lewis Rodger (Drax Group), Stefano Miriello, Carbon Capture and Storage Association, Svea Nyberg, (IETA), Winston Beck (Heidelberg Materials), Artur Runge – Metzger (Mercator Research Institute on Global Commons and Climate Change (MCC) gGmbH), Liv Rathe (Norsk Hydro); Ingo Ramming (BBVA), Michael Pahle (PIK – Potsdam Institute for Climate Impact Research), Verena Hofbauer (Carbon Gap).

The recording of the meeting is on the ERCST’s website: https://ercst.org/event/the-future-of-the-eu-ets-cdrs-public-event/