8th July 2025

Targeted political and financial measures are needed to ensure the success of carbon dioxide removal in Germany. The study ‘Investment Need & Support Mechanisms for Scaling CDR in Germany and Europe’ by DVNE and Boston Consulting Group (BCG) provides verified, concrete options for action.

The study highlights funding opportunities, identifies strategic entry points into the EU ETS and outlines how Germany can create a credible, investable CDR market. This gives Germany the opportunity to tap into a developing market that could be worth up to €940 billion worldwide by 2050. The task now is to secure leadership in a critical technology area, build industrial capacity and shape the standards of a global CDR market.

What needs to be done now

Germany wants to be climate neutral by 2045 – but without negative emissions, this goal will not be achievable. What needs to be done now to scale carbon dioxide removal in Germany and build a functioning market:

Create a reliable funding framework

To enable the ramp-up, the study recommends a bundle of public funding instruments, including government procurement of CDR certificates, one-off grants for CDR projects, and carbon contracts for difference (CCfDs). Additional instruments such as low-interest loans, equity investments or tax credits should also be considered.

Creating clarity in regulation and infrastructure

Legal certainty for CO₂ transport and storage, the development of a suitable transport and storage infrastructure, and reliable standards for monitoring, reporting and verification (MRV) are necessary. This creates predictability for companies and investors.

Adopt the long-term negative emissions (LNe) strategy

The LNe strategy is in place – now it must be politically approved and implemented. It creates a reliable basis for long-term development paths and targets with defined quantities in the area of carbon dioxide removal .

Enable a variety of methods

Germany should focus on a diversified portfolio consisting of nature-based and technical processes. In the short term, nature-based solutions dominate, but in the long term, the following are also needed, among other things:

• Direct air carbon capture and storage (DACCS)

• Bioenergy with carbon capture and storage (BECCS)

• Biochar carbon removal (BCR)

• Enhanced rock weathering (ERW)

Invest now. Delay will be costly.

The necessary investment in CO₂ removal is manageable: Germany will need around €6 billion by 2030 and €90 billion by 2045 to achieve the CO₂ removal capacities required to meet its climate targets. This corresponds to less than 1% of total climate investments by 2045 – and enables the development of a sustainable future industry with a market volume of up to €70 billion and 190,000 new jobs for Germany.

The study’s landing page provides a clear summary and graphical presentation.