New analysis suggests carbon markets must account for storage duration in pricing removals‎

Carbon dioxide removal technologies are becoming increasingly important for climate action, but their differing storage times matter for policy design. A new study published in Environmental and Resource Economics by the Potsdam Institute for Climate Impact Research (PIK) provides guidance based on economic principles. While non-permanent carbon storage plays a valuable role as economies transition away from fossil fuels, its contribution is less valuable than permanent storage; this should be reflected in carbon pricing schemes that aim to incentivize the ramping-up of removals.