European Union ETS: Integration of CDRs (Carbon Dioxyde Removals) and Future Strategies

How to integrate CDRs (Carbon Dioxyde Removals) into the European Union ETS (Emissions Trading Systems)? Integrate them into the ETS 1 and -soon-to-be- ETS 2? Or establish a separate CDR market?

Two main options have been discussed about the future of the European Union Emissions Trading System (EU ETS), at a conference organized by the ERSCT (European Roundtable on Climate Change and Sustainable Transition) in Brussels on 26/06/2025: integrating carbon dioxide removals into the existing EU ETS1, which covers power generation and energy-intensive industries, and into the future ETS2, which will cover buildings and transport from 2027.

Combining both systems could create a broader, more unified carbon market, according to the conference. It also suggests that a third option could be establishing a separate trading system for CDRs operating alongside current ETS frameworks, with its own rules and obligations.

CDRs should be introduced in both the ETS 1 and 2 : a phased approach is recommended, with the initial integration in the ETS1 only, well-tested and better understood. "Having…