Several regions of the world have already created regulated, compliance-based carbon markets, including the European Union with its ETS cap-and-trade scheme. The scheme however only focuses on specific industries (aviation, power generation, heavy manufacturing and soon shipping) leaving a lot of sectors uncovered.
This underscores the significance of the voluntary carbon market, particularly with regard to CDR credits. It emphasizes the essential requirement for credible oversight mechanisms that ensure the transparency and integrity of projects. .
The European Union is in the process of developing regulations for a new Carbon Removal Certification Framework to govern the crediting and accounting of carbon removal methods. This soon-to-be-adopted framework aims to create a transparent and trusted market for CDR within the EU.