Second Annual Conference on Carbon Highlights Growing Market for Carbon Removal Technology
Last week, the second annual conference on carbon was held in Tel Aviv, focusing on the increasing sums of money being allocated to technology capable of removing carbon dioxide from the atmosphere. The conference, organized by non-profit ClimateNet, brought together environmentalists, investors, consultants, start-ups, academics, government officials, and ambassadors.
Matthias Honegger, head of Carbon Dioxide Removal at German climate advisory firm Perspectives Climate Research, addressed the conference, stating that the carbon removal market is approaching $1 trillion. Honegger emphasized the urgency of the situation and urged countries to take action, as the tide of carbon markets is approaching. He praised Israel for its proactive approach, while noting that most countries are still lagging behind.
In March, the United Nations Intergovernmental Panel on Climate Change called for a significant increase in carbon dioxide removal from the atmosphere. This, along with a 60% reduction in emissions by 2035, would help to limit global temperature rise to within 1.5 degrees Celsius above pre-industrial levels.
Nature-based solutions, such as restoring forests and wetlands, currently make up the majority of carbon removal projects. However, there are concerns that the available land for such projects is limited and that demand is outstripping supply.
The conference also discussed various technological approaches to carbon removal. Carbon capture and storage (CCS) or carbon capture, use, and storage (CCUS) involve capturing carbon dioxide from industrial sources, separating and treating it, and either recycling it into new products or storing it underground. Another method, direct air capture (DAC), captures CO₂ directly from the atmosphere.
The Israeli Ministry of Energy has commissioned the Geological Survey to map potential areas for carbon storage. Dr. Shahar Dolev, head of long-term modeling at the Ministry, explained that this work will be completed within a year, after which the ministry will develop a strategy, regulations, and support pilot projects related to CCS.
Furthermore, the Ministry has announced two research grants for carbon sequestration projects in Israel. These grants aim to encourage companies and researchers to contribute to carbon emissions reduction.
The voluntary carbon market, where companies invest in environmental projects like reforestation to offset their carbon emissions, is expected to be worth between $10 billion and $40 billion by 2030. However, big companies like Microsoft are struggling to find enough carbon removal opportunities, despite their financial resources.
Ely Sandler, an Israeli climate economist based at Harvard, highlighted the importance of Article 6 of the 2015 Paris climate accords in transforming the carbon market. This article allows countries and companies to trade carbon credits to meet their emission reduction targets. The United Nations sets the rules for this market, ensuring transparency and preventing greenwashing.
Despite concerns from environmental activists about the use of carbon removal technology to mask continued fossil fuel production, the potential value of carbon credits is expected to reach 1 trillion euros with the implementation of Article 6.
The conference organizers stated that the event’s attendance doubled compared to last year, with over 300 participants. This growing interest in the carbon removal market demonstrates the increasing awareness of the urgency to combat climate change.