Carbon Dioxide Removals: Gold Standard’s Approach

Currently, around two billion tonnes (Gt) of CO2 is removed from the atmosphere each year, predominantly through conventional CDR solutions such as afforestation and reforestation. However, analyses estimate that CDR will need to scale to 6 – 10 Gt by 2050, with the majority of growth coming from engineered solutions.  

 According to the Boston Consulting Group (BCG), the voluntary carbon market (VCM) will be the key driver of CDR scale up until at least 2040. Over the past few years there has been a rapid growth in CDR solutions. For example, the latest report from CDR.fyi, outlines an 850% growth in tonnes of engineered CDR carbon credits purchased from 2022 to Q2 of 2024.  

While expanding CDR is essential, and the voluntary carbon market is an effective tool to fund technology that is often expensive as it expands, it must not detract from the urgent need to reduce emissions. CDR should serve as a complementary measure. This approach ensures that we maintain environmental integrity while driving necessary innovations and accountability in reducing emissions at the source. 

So, what is CDR? And how does it differ from the emissions reductions and avoidance projects ? 

• Emissions reduction projects involve replacing an activity in the baseline scenario (e.g., inefficient traditional stoves for cooking) with an advanced and cleaner technology in the project scenario which is less-emission intensive (e.g. clean cookstove) .   
• Emissions avoidance projects involve preventing an activity in the baseline scenario from occurring in the first place (e.g., avoiding waste disposal in landfills). 
• For typical carbon dioxide removal projects, there is no activity in the baseline scenario; the activity in the project scenario involves capturing carbon dioxide (CO2) from the atmosphere (sometimes via biological matter) and storing it long-term, thus preventing it from re-entering the atmosphere (e.g., carbon capture from the fermentation of biomass with geological storage) 

With our longstanding reputation for quality and integrity within the VCM, Gold Standard is working to expand our CDR options in order to help scale up this vital sector. We do this from a unique position, with the aim of not only maximising the climate impact, but also ensuring that rigorous safeguards are met and that Sustainable Development co-benefits are actively integrated.  

Engineered CDR 

Gold Standard is currently seeking feedback on the following engineered CDR documents: 

• Engineered Carbon Dioxide Removal Activity Requirements 
• Methodological Tool: Reversal Risk Calculations for Geological Storage  

Gold Standard is also updating its methodology for carbon mineralization to expand the scope and to align with the best practices in the VCM and recent CDR developments. The revised methodology, developed in collaboration with Neustark, will be available for public consultation soon.   

In addition, we have published a Rule Update for the Gold Standard methodology for biomass fermentation with carbon capture and geological storage which aims to expand the eligible CO2 sources beyond fermentation, meaning other biogenic emissions can be considered (e.g., emissions from bioenergy, anaerobic digestion, pyrolysis, and gasification).    

Nature-based CDR 

Gold Standard recently expanded its offerings for nature activities for CDR with the release of Blue Carbon and Freshwater Wetlands Activity Requirements and a Methodology for the Sustainable Management of Mangroves. 

Going forward, we will continue to introduce new methodologies and tools to support the generation of CDR verified emission reductions and impact claims under Gold Standard for the Global Goals. We are always open to receiving proposals for methodology development – find out about how to submit a new methodology concept on our Standard website. 

Innovative approaches among companies: Internal carbon prices and carbon fees

There is growing awareness among the private sector on the true value of natural capital, like a stable climate and thriving ecosystems, and progress in social measures like improved health and gender equality. Specific to climate, Swiss retailer Coop sets their internal price on carbon at CHF 150 (roughly USD $150) to drive innovation and investment in Gold Standard-certified emissions reduction activities that also support communities within their supply chains. Microsoft requires their internal departments to include a budget line item reflecting the cost of their carbon emissions, which then translates to a carbon fee that they contribute to a carbon investment fund, creating new capital for sustainability initiatives. These include internal emissions reductions efforts in addition to supporting projects outside their operations through carbon credit purchases. 

Recommendations

In conclusion, deciding on what project to invest in and how much it’s worth remains a bit like navigating the real estate market. There are a number of different considerations ranging from quality, type, size, and geographical location. While ‘value’ can remain somewhat subjective depending on your organisation’s ideals, objectives and requirements and is subject to the forces of supply and demand, Gold Standard advocates for prices of carbon credit to more closely mirror the true social cost of carbon and the economic value provided in additional impacts, while using the power of markets to help deliver this in the most cost-effective manner.