Summary
July’s most important development was the movement of CDR further into mainstream climate-policy architecture, particularly in Europe. The European Commission proposed integrating permanent removals into the EU Emissions Trading System—potentially creating a large compliance-market source of demand rather than leaving durable removals dependent primarily on voluntary buyers. In parallel, the Commission adopted common certification methodologies for three forms of carbon farming, continuing the build-out of the EU-wide Carbon Removals and Carbon Farming framework.
The UK moved on several fronts at once. Its response to the independent greenhouse-gas-removals review connected supply support, CO₂ infrastructure, market demand and standards within a broader government approach, while the new Carbon Management Innovation Challenge set specific technology-development goals and paired them with work on market pull and policy barriers. New Zealand also proposed creating a general statutory pathway for additional durable carbon-removal activities to enter its emissions-trading system in the future. At the subnational level, Oregon adopted quantified 2035 and 2050 sequestration goals for natural and working lands. What remained absent in July was a comparable move toward governments accepting responsibility for ensuring that removals actually occur.
Research, demonstration & innovation
UK launches Carbon Management Innovation Challenge
On July 15, the UK Department for Energy Security and Net Zero launched its first Cleantech Innovation Challenge, focused on carbon capture and greenhouse-gas removal. The program is intended to accelerate development, demonstration and commercialization of new technologies through government-industry collaboration, support for selected innovators, and policy work aimed at reducing barriers and creating market demand. Source: UK Department for Energy Security and Net Zero
Markets & incentives
European Commission proposes bringing permanent removals into the EU ETS
On July 17, the European Commission proposed a targeted revision of the EU Emissions Trading System that would integrate permanent carbon removals into the ETS. The Commission says the change would give additional flexibility to hard-to-abate sectors while supporting the scale-up of permanent-removal technologies. The proposal remains subject to the EU legislative process. Source: European Commission
New Zealand proposes a route for non-forestry removals into its ETS
On July 15, New Zealand introduced a Climate Change Response Amendment Bill that would add “carbon removal activities” as an activity that can be recognized under the New Zealand Emissions Trading Scheme. The change would not immediately add new removal methods to the ETS; instead, it would create an enabling category so qualifying approaches could later be added through activity-specific regulations without further primary legislation. Source: New Zealand Ministry for the Environment
Rules, standards & MRV
EU adopts three carbon-farming certification methodologies
On July 9, the European Commission adopted certification methodologies under the Carbon Removals and Carbon Farming Regulation for agriculture and agroforestry on mineral soils, rewetting and restoration of peatlands and other organic soils, and afforestation. The methodologies establish common technical rules for certifying these activities across the EU. Source: European Commission
New Zealand develops government endorsement criteria for voluntary markets
On July 20, New Zealand released draft criteria for government endorsement of domestic voluntary nature and carbon-market schemes and methodologies. The proposed framework covers scheme governance and integrity, assurance practitioners, and requirements for project validation and verification. Consultation remained open through August 7. Source: New Zealand Ministry for the Environment
Infrastructure & permitting
Maryland carbon-removal permitting law takes effect
A Maryland law governing biochar and wood-vault carbon-removal projects took effect July 1. It requires the Maryland Department of the Environment, in consultation with the Department of Agriculture, to adopt regulations and standards governing permitting for these projects by January 1, 2028. An earlier provision requiring state agencies to fund qualifying carbon-removal projects was removed before the legislation was enacted. Source: Maryland General Assembly
National strategy
UK sets out strategy for developing a functioning GGR market
On July 17, the UK government published its response to the independent review of greenhouse-gas removals. The government describes its strategy as building domestic supply through revenue certainty and CO₂ transport and storage networks, while creating durable demand through market frameworks and maintaining high-integrity standards for removals. The response also confirms continuing work on the GGR Business Model and the future role of removals in UK climate policy and carbon markets. Source: UK Department for Energy Security and Net Zero
Subnational strategy
Oregon establishes carbon-sequestration goals for natural and working lands
On July 17, the Oregon Climate Action Commission and Oregon Department of Energy established nonbinding net carbon-sequestration and storage goals for the state’s natural and working lands. The goals call for net sequestration of at least 57.6 million tonnes of CO₂ equivalent annually by 2035 and 62.4 million tonnes annually by 2050. The state will track progress through its land-based carbon inventory and implementation of natural climate solutions. Source: Oregon Department of Energy
No major new government action identified this month.