Resolving the emerging endgame

Charting a path towards net-negative emissions with carbon removal

Welcome to Carbon Risk — helping investors navigate 'The Currency of Decarbonisation'! 🏭

If you haven’t already subscribed please click on the link below, or try a 7-day free trial giving you full access. By subscribing you’ll join more than 4,000 people who already read Carbon Risk. Check out what other subscribers are saying.

You can also follow my posts on LinkedIn. The Carbon Risk referral program means you get rewarded for sharing the articles. Once you’ve read this article be sure to check out the table of contents [Start here].

Thanks for reading Carbon Risk and sharing my work! 🔥

---

Estimated reading time ~ 10 mins

Photo by Yaroslav Boshnakov on Unsplash

In part one of this two-part series I introduced the emerging endgame. To recap, this refers to the period up the late 2030’s when the EU ETS emissions cap will approach zero. The anticipation of this event could have a big impact on the behaviour of market participants and the ability of the scheme to continue to deliver on its policy objectives.

There are a number of measures that could be used to ameliorate the impact of the emerging endgame, however none of these really deals with the underlying issues. More fundamentally the EU ETS will need to move towards a structure that incentivises net-negative emissions, something that will usher in a major role for carbon removal. It’s to the question as to how that could happen to which we now turn.