Forbes article

Introduction

  • Author: Phil De Luna, materials scientist focused on CO2 removal.

  • Article: Forbes Innovation Sustainability on Canada’s new Direct Air Capture (DAC) protocol.

Government Action on DAC

  • Canada adopts the first government-backed DAC offset protocol globally.

  • This move legitimizes the DAC industry and sets a precedent for carbon removal regulation.

  • Positions Canada as a leader in climate innovation.

  • The framework aims to attract massive investments and promote global adoption of DAC.

1. Monetizing Carbon Removal Through the Carbon Credit Market

  • Current DAC business model is selling carbon credits in voluntary markets.

  • Companies aiming for net-zero emissions purchase DAC credits to offset emissions.

  • Investments from major corporate buyers like airlines and tech companies.

  • Over 1.6 million tonnes of DAC credits purchased at an average price of $470/tonne.

  • The new protocol ensures DAC credits meet high standards for:

    • Permanence

    • Quantifiability

    • Transparency

  • Aligns with International Standard Organization's standards for greenhouse gas verification.

2. Driving Economic Development

  • Increase in sales of carbon credits will spur project development in Canada, leveraging its clean energy and geological storage capacity.

  • Projects contribute to job creation and economic opportunities in remote areas.

  • As DAC prices decrease with improved technology, more customers may opt for DAC-based solutions.

3. Raising the Bar for Carbon Offset Integrity

  • Canada’s DAC protocol requires the permanent storage of CO₂ for at least 100 years.

  • Mandates continuous monitoring to prevent CO₂ reversal.

  • High standards for durability and accountability established.

  • Bans the use of captured CO₂ for enhanced oil recovery, ensuring DAC functions as a genuine climate solution.

4. Transition to Compliance Carbon Markets

  • Canada's protocol could integrate DAC into compliance markets where credits are mandated.

  • Current compliance markets (EU Emissions Trading System, California’s Cap-and-Trade) would benefit from such integration.

  • This shift could increase demand for DAC credits enabling major emitters to use DAC to meet reduction targets.

  • Investment surge in DAC infrastructure could lower costs.

5. DAC's Role in Meeting Net-Zero Targets

  • Deadline: 2024 marked the first exceeding of the 1.5-degree Celsius rise.

  • Emissions control alone is insufficient—active CO₂ removal is necessary.

  • DAC can eliminate legacy emissions and assist hard-to-abate sectors like aviation.

  • IPCC emphasizes the necessity of Carbon Dioxide Removal (CDR) technologies for achieving net-zero goals.

6. Challenges and Future Directions

  • Current DAC costs range from $400 to $1,000/ton of CO₂.

  • Widespread adoption will necessitate policy support, including tax incentives and public-private partnerships.

  • Expansion of renewable energy sources critical for DAC feasibility and benefits.

  • Investment in low-carbon energy infrastructure (geothermal, nuclear) vital for DAC's long-term viability.

Conclusion

  • Success of Canada’s DAC protocol will depend on industry and public feedback for effectiveness.

  • If successful, could serve as a global model for DAC implementation in climate strategies.

  • Canada is creating robust regulations and high-integrity DAC credits to pave the way for new investments and international adoption.

  • The coming years will be crucial for assessing DAC's capability to meet climate goals.