Carbon Removal Accounting for a Sustainable Future: Distributing CO 2 Flows in Multiservice Systems

Gonzalo Rodriguez-Garcia (), Miguel Brandão and Robert Anex ()
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Gonzalo Rodriguez-Garcia: Wisconsin Energy Institute, University of Wisconsin-Madison, Madison, WI 53706, USA
Miguel Brandão: Department of Sustainable Development, Environmental Science and Engineering (SEED), KTH, 100 44 Stockholm, Sweden
Robert Anex: Wisconsin Energy Institute, University of Wisconsin-Madison, Madison, WI 53706, USA

Sustainability, 2024, vol. 16, issue 24, 1-13

Abstract: Carbon dioxide removal (CDR) systems are an integral part of sustainable pathways limiting global warming to less than 2.0 °C. When the sole purpose of CDR is capturing and storing atmospheric CO 2 , carbon registries offer detailed procedures to calculate the carbon removal credits. However, the registries do not address how to distribute CO 2 flows when CDR provides additional services. Standardized, transparent rules for distributing CO 2 flows among CDR services are required for the formation of efficient private and public carbon markets. The lack of such rules could result in double counting if those reductions are allocated to more than one service, decreasing the trustworthiness of carbon removal credits or deterring the delivery of an additional low-carbon service, thus limiting the economic viability and deployment of CDR. We examine allocation rules in carbon registries and carbon accounting guidelines, including their life cycle assessment (LCA) principles. We evaluate physical (mass-based) and non-physical (economic) allocation methods using a generic CDR system and find both to be unworkable. We then develop a mass balance (MB) approach which can reliably allocate captured and stored carbon (CSC) between carbon removal credits and other services based on the value CO 2 removal in those markets. This practical approach to allocation can be used in a transparent way to provide flexibility that would allow CDR services to capture the value of the multiple services they provide and, through this, promote the deployment of these sustainable alternatives.

Keywords: allocation; carbon accounting; carbon dioxide removal; life cycle assessment; mass balance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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