According to the Intergovernmental Panel on Climate Change (IPCC), large-scale Carbon Dioxide Removal (CDR) is required to limit warming to 1.5 °C. The technology is critical for difficult-to-decarbonize sectors like heavy industry, and emissions-mitigation scenarios assume a significant ramp up in CO2 abatement from CDR technologies, particularly from Carbon Capture, Utilization and Storage (CCUS) and Direct Air Capture (DAC). What is the outlook for CCUS and DAC? Which business models make CCUS and DAC commercially viable? How can carbon markets be leveraged to make CDR technologies more attractive? How big of an impact is the U.S. Inflation Reduction Act having?
The Inflation Reduction Act (IRA) has turned out to be a big accelerator for capital deployment in the U.S. with its generous tax credits. However, the intention by the U.S. to lead the world on clean energy investment and supply chain has also spurred an intense debate about the spillover effects of the IRA on climate policies and investment outside the U.S. We will explore both positive and negative spillover effects of the IRA and explore opportunities and challenges for the rest of the world.