The UK has launched its Greenhouse Gas Removals (GGR) Business Model, a flagship policy built around 15-year Contracts for Difference (CfDs) to accelerate carbon removal technologies. The scheme guarantees developers a fixed carbon credit price, cushioning them against market volatility by covering shortfalls if prices dip and reclaiming excess profits when prices rise. To reduce upfront risks, the government is also offering capital grants covering up to 50% of construction costs, a 5% bonus for maximizing credit sales, and full reimbursement of CO₂ transport and storage expenses.
The program, initially targeting Bioenergy with Carbon Capture and Storage (BECCS) and Direct Air Capture (DACCS), uses interim British Standards Institute methodologies until a national GGR standard is finalized. Analysts say the model could be a turning point for scaling carbon removal in the UK, though its complexity may challenge smaller developers and slow deployment if standards lag. The UK plans to integrate carbon removal into its Emissions Trading Scheme (ETS) by 2028, aiming for full operational rollout by 2029. More