Achieving Net-Zero Carbon Emissions Targets with Direct Air Capture
Reaching net-zero is becoming a priority for governments and organisations as the urgency to address climate change grows and the pressures from emission target penalties start to mount.
However, meeting this ambitious target requires more than simply reducing emissions. We need technologies like Direct Air Capture (DAC) that offer a solution for removing carbon dioxide (CO₂) already present in the atmosphere, balancing out emissions from sectors that are hard to decarbonise. (See: How does Direct Air Capture Work?)
Additionally, the captured CO₂ can be utilized in industrial processes such as producing Sustainable Aviation Fuel (SAF) and in sustainable concrete, which counteract and reduce the emissions of these industries.
Why Reducing Emissions Alone Isn’t Enough to Reach Net-Zero Targets
Global efforts to combat climate change often focus on reducing emissions by transitioning to renewable energy, improving energy efficiency, and adopting sustainable practices.
While these steps are essential, they do not address the legacy CO₂ that has already accumulated in the atmosphere since the beginning of industrialisation. This accumulated CO₂ continues to trap heat, driving global warming and causing lasting environmental impacts.
According to an Intergovernmental Panel on Climate Change (IPCC) report, we need to remove 10 billion tonnes of CO₂ per year by 2050. And this will not happen without technological help. In the IEA report “Direct Air Capture – A key technology for net zero”, it states that DAC must scale from capturing the 0.01 million tonnes CO₂ per year (MtCO₂) today to 85 MtCO₂ by 2030 and 980 MtCO₂ by 2050.
Moreover, hard-to-abate industries, such as aviation and construction, emit CO₂ during processes where with even the best reduction measures, a remnant persists.
So, achieving net-zero requires a dual approach: drastically reducing new emissions while actively removing historical emissions from the atmosphere. This is where DAC technology steps up.
Net-Zero Goals: Penalties for Missing Emissions Targets
Besides the moral obligation of corporations and governments to secure a healthy planet for future generations, there are financial repercussions that are motivating the drive to net-zero.
Fines are now being levied for falling short of emission targets. A case in point is the European Union (EU) which has established stringent climate targets for its member states, aiming for a net reduction of greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels, and achieving climate neutrality by 2050.
To enforce these objectives, the EU has implemented regulatory frameworks that impose penalties on countries and industries failing to meet their designated targets.
Penalties for EU Member States
Under the Effort Sharing Regulation (ESR), EU member states are assigned specific emission reduction targets based on their gross domestic product (GDP). If a country fails to meet its annual emission allocations, it is required to compensate by purchasing carbon credits from other member states that have exceeded their targets.
The problem arises when there are not enough spare carbon credits to go round. For instance, Germany is projected to miss its 2030 climate target by 10 percentage points, necessitating the purchase of approximately 126 million allowances from other countries. At a projected carbon price of €129 per tonne in 2030, this could result in a financial burden of about €16.2 billion for Germany. [Transport & Environment]
Similarly, Ireland faces a possible €20 billion in fines for missing their EU 2030 targets.
Penalties for High-Emitting Industries
The EU imposes specific regulations on high-emitting industries, such as transportation and construction, to curb emissions.
In the construction sector, for example, regulations are primarily enforced at the national level, with EU directives guiding member states.
So ultimately, merely reducing carbon emissions is not going to get the job done and will result in heavy penalties for governments and corporations.
The Role of Direct Air Capture in Reaching Carbon Neutrality
DAC systems can operate in a relatively small footprint, be location flexible and can deliver immediate results (See: The Advantages of Direct Air Capture). When combined with geological storage or CO₂ utilization, DAC ensures the captured CO₂ remains sequestered for millennia or re-used in a carbon-neutral loop.
Given the emission penalties they are facing, companies are beginning to recognise the importance of integrating DAC into their net-zero strategies if they are going to succeed in their endeavour to reach carbon neutrality.
As of 2024, there were approximately 130 DAC facilities at various stages of development worldwide. If all these projects progress as planned, DAC deployment could reach nearly 65 million tonnes of CO₂ per year by 2030. However, to align with the IEA’s Net Zero Emissions by 2050 Scenario, deployment needs to reach 80-85 million tonnes per year by 2030. [Statista]
Furthermore, there is optimism that DAC costs will continue to decrease as the technology matures and scales up, potentially reaching $100–$200 per tonne, which will make it a competitive solution for achieving carbon neutrality.
Net-Zero Strategy for High Emitting and Hard-to-Abate Industries
Two of the most challenging industries to decarbonise are aviation and construction.
Aviation
The aviation sector contributes approximately 2-3% of global CO₂ emissions. In the EU, the aviation sector operates under the EU Emissions Trading System (EU ETS), which requires airlines to monitor, report, and verify their emissions. They must surrender allowances corresponding to their emissions each year. Failure to comply results in penalties of €100 per excess tonne of CO₂ emitted.
While advancements in Sustainable Aviation Fuels (SAF) are making strides, fully eliminating emissions from flights remains a long-term goal. DAC can offset emissions from flights by removing an equivalent amount of CO₂ from the atmosphere, enabling airlines to achieve carbon neutrality.
What’s more, the carbon captured can be used in producing SAF, thus creating a circular carbon loop.
Construction
In the construction industry, which is responsible for over 35% of annual global carbon emissions, integrating captured CO₂ into building materials like concrete offers a double benefit. CO₂ can be injected into concrete during production, where it reacts with minerals to form stable carbonates. This process not only reduces the carbon footprint of concrete manufacturing but also locks the CO₂ away for decades, as the material remains intact for the lifetime of the structure. (See: Storing CO2 in Concrete for Sustainable Construction)
Conclusion
Scaling Direct Air Capture for Net-Zero Goals
Governments and private sector partnerships can accelerate deployment of DAC by supporting research, providing subsidies, and implementing policies that incentivise carbon removal technologies.
Advances in DAC technology are making Direct Air Capture more affordable and efficient and thus more scalable for the mass deployment needed for DAC to play its part in net-zero efforts.
Direct Air Capture offers a viable solution for achieving net-zero carbon emissions by addressing the legacy CO₂ that reduction strategies alone cannot eliminate. Additionally, by targeting hard-to-decarbonise sectors like aviation and construction, DAC complements existing efforts to reduce emissions.
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