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Collaborating for Climate: CDR Policies and Practices in the U.S. and China | Center for Global Sustainability
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width="1100" height="445" alt="image of green grass" /> </figure> <div class="tagline"><time datetime="2024-11-19T12:00:00Z">November 19, 2024</time> </div> <div class="news-story__social silc-mbottom--7 silc-mbottom--5-800"> <div> <div class="share"> <div class="share__title">Share:</div> <div class="share__buttons"> <!-- AddToAny BEGIN --> <div class="a2a_kit a2a_kit_size_32 a2a_default_style"> <a class="a2a_button_facebook link--icon link--icon-white link--icon-facebook-f"> <svg id="Icons_Social_facebook" data-name="Icons/Social/facebook" xmlns="http://www.w3.org/2000/svg" width="32.967" height="33" viewBox="0 0 32.967 33"><ellipse id="Oval_27" data-name="Oval 27" cx="16.484" cy="16.5" rx="16.484" ry="16.5" transform="translate(0 0)" fill="#f1f1f1"/><path id="facebook_ico" data-name="facebook ico" 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href="https://cgs.umd.edu/research-impact/publications/carbon-dioxide-removal-policies-and-practices-us-and-china"><span>new report</span></a><span> analyzing carbon dioxide removal (CDR) policies in the United States and China. The report offers a comprehensive overview of the CDR policy landscapes and practices at national and subnational levels, enhancing understanding of how CDR approaches contribute to mitigation strategies and identifying key opportunities to accelerate CDR deployment through bilateral collaboration. The study analyzes around 400 national-level and 500 subnational-level CDR-related policies, along with around 350 CDR projects from both countries, and provides policy recommendations to enhance future collaboration in advancing CDR technologies.</span></p><p dir="ltr"><span>CDR is crucial for the U.S. and China to meet their climate goals and achieve net-zero emissions. By capturing and durably storing CO2 from the atmosphere, CDR helps both nations contribute to the Paris Agreement’s target of limiting global warming to below 2°C. As major CO2 emitters, the U.S. and China view CDR as key to decarbonizing hard-to-abate sectors and reaching net zero by mid-century. The most recent Sunnylands Statement on Enhancing Cooperation to Address the Climate Crisis also underscores the critical role of both countries in scaling up CDR technologies. </span></p><p dir="ltr"><span>“In tackling the urgent challenge of climate change, stakeholders in both the U.S. and China must collaborate in accelerating the advancement of CDR technologies and commercializing CDR projects,” stated <strong>Yingtong Li</strong>, CGS Research Assistant, and the report’s lead author. “Our study highlights the distinct yet complementary approaches each nation is taking, showcasing national and subnational opportunities for collaboration in policy design and implementation.”</span></p><p dir="ltr"><span>The report reveals that commonly used policy instruments for CDR development vary significantly between the U.S. and China. Federal laws and diverse economic incentives, particularly the 45Q tax credits under the Inflation Reduction Act (IRA), are driving state-level interest in developing CDR frameworks in the United States, while China has primarily focused on strategic planning and voluntary programs. The spatial distribution of CDR policies is also different across U.S. states and Chinese provinces, with uneven attention in specific sectors and various processes. Despite distinct policy approaches, many U.S. states and Chinese provinces lack comprehensive climate policies tailored to CDR, highlighting the need for more explicit and localized policy frameworks.</span></p><p dir="ltr"><span>CDR projects in the United States focus on industrial processes, natural gas, bioenergy with carbon capture (BECCS) and storage and direct air capture (DAC), supported by a mix of federal and state-level policies, including the 45Q tax credit and the IRA. States like Illinois and California offer targeted incentives to meet local energy needs. However, many states lack strong economic support for CDR technologies, leading to a heavy reliance on federal funding. </span></p><p dir="ltr"><span>In contrast, CDR projects in China are largely based in the chemical industry, power plants, steel production, and oil and gas sectors, with CO₂ used primarily for enhanced oil recovery (EOR). China places less emphasis on government funding and financial incentives. While regions like Shandong and Tianjin are pioneering carbon markets for carbon capture storage (CCS) and carbon capture, utilization, and storage (CCUS), many provinces lack specific financial incentives for CDR, revealing gaps in infrastructure and support.</span></p><p dir="ltr"><span>The report highlights that the U.S. has clear, enforceable regulations like the EPA’s New Source Performance Standards, with some states, such as Colorado, requiring feasibility assessments for carbon capture. In contrast, China’s CDR policies are still developing, focusing on point-source emissions with stricter policies in certain provinces but a lack of comprehensive frameworks elsewhere. While the U.S. has an established tracking and reporting system, China’s efforts are in the early stages, primarily focused on pilot projects and regional initiatives.</span></p><p dir="ltr"><span>“To meet these crucial climate goals, we need to implement comprehensive and effective mitigation strategies globally,” said </span><a href="https://cgs.umd.edu/our-community/faculty-staff/mengye-zhu"><span><strong>Mengye Zhu</strong></span></a><span>, CGS Assistant Research Professor, China Program Co-Director, and author of the report. “Enhancing CDR efforts by strengthening enforcement mechanisms, addressing regional disparities, and increasing investments in CDR technologies—such as bioenergy with carbon capture and storage and direct air capture—are essential for achieving the target of keeping global warming below 2°C.”</span></p><p dir="ltr"><span>To effectively scale up CDR technology deployment and promote collaborative opportunities between the U.S. and China, the analysis offers the following policy recommendations:</span></p><ul><li dir="ltr"><span>Filling existing CDR policy gaps. </span><ul><li dir="ltr"><span>Addressing policy gaps in carbon storage and utilization</span></li><li dir="ltr"><span>Offering policies that directly promote pilot studies and demonstration projects for CDR technologies</span></li><li dir="ltr"><span>Incorporating local contexts into policy design and promoting policy experiments</span></li></ul></li><li dir="ltr"><span>Establishing clear standards for CDR deployment. </span><ul><li dir="ltr"><span>Setting carbon emissions standards for new facilities and establishing safety criteria for CO₂ transportation and storage</span></li><li dir="ltr"><span>Ensuring standards are comprehensive and widely accepted</span></li><li dir="ltr"><span>Implementing consistent and transparent MRV systems</span></li></ul></li><li dir="ltr"><span>Diversifying policy instruments for CDR technologies</span><ul><li dir="ltr"><span>Providing a range of funding options tailored to specific CDR technologies, including grants, subsidies, and low-interest loans, to encourage innovation and development across different sectors</span></li><li dir="ltr"><span>Implementing legislative and regulatory measures to protect the environment from potential negative impacts</span></li></ul></li><li dir="ltr"><span>Promoting private investment and public-private partnerships in CDR technologies</span><ul><li dir="ltr"><span>Encouraging regular dialogue between government entities and private companies</span></li><li dir="ltr"><span>Simplifying procedures and regulations for business operation approvals</span></li></ul></li></ul><p dir="ltr"><span>As both countries advance toward their net-zero targets, addressing the existing policy gaps and increasing financial support will be vital for scaling up effective CDR solutions. The findings of this policy report underscore the critical need for enhanced U.S.-China collaboration and tailored policies to advance CDR technologies in both the United States. and China. By leveraging their unique strengths and fostering innovation, the United States and China can position themselves as leaders in the global transition to a sustainable world.</span></p><p dir="ltr"><span>Download the report </span><a href="https://cgs.umd.edu/research-impact/publications/carbon-dioxide-removal-policies-and-practices-us-and-china"><span>here</span></a><span>.</span></p> </section> <ul class="tag-list"> <li class="tag-list__item tag-list__heading"> <strong>Explore:</strong> </li> <li class="tag-list__item"> <a href="https://cgs.umd.edu/" class="tag-list__link">Center for Global Sustainability</a> </li> <li class="tag-list__item"> <a href="https://spp.umd.edu/research-impact/strategic-focus-areas/sustainability" class="tag-list__link">Sustainability</a> </li> </ul> </div> <hr class="silc-mbottom--6"> <!-- Media contact --> <div class="media-inquiries"> <div class="silc-pright--9-1000"> <div class="label">For Media Inquiries:</div> <div class="media-inquiries__contact-name 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