The European Union (EU) today discusses intensely on its 2040 climate targets, with the Commission proposing 90 % net reduction in greenhouse gas (GHG) emissions compared to 1990 levels. Achieving this ambitious goal will require not only deep reduction of emissions, but also CO2 removal and utilizationIt is estimated that by 2040, more than 250 Mt of CO2 will need to be captured annually for storage and use. In this context, Direct Air Capture (DAC) technologies play a key role.

What are DAC technologies?

DAC is a technology that captures CO2 directly from the atmosphereThere are two main types:

• Solid-DAC (S-DAC): Uses solid sorbents. Offers advantages such as modularity and use of low-temperature heat, which is suitable for integration with waste heat sources.
• Liquid-DAC (L-DAC): Uses liquid solvents. Relies on proven materials and processes, supporting scalability and economies of scale.

When CO2 captured by DAC is permanently stored in geological formations or through mineralization, it is called DAC with carbon storage (DACCS) and allows permanent CO2 removalIf captured CO2 is used to produce fuels or materials that replace more carbon-intensive alternatives, this is referred to as DAC with carbon utilization (DACCU) and can reduce net emissions through substitution. Both technologies face high energy consumption and costs.

Costs and environmental aspects

The costs of DACCS are currently significant and are accompanied by great uncertainties due to limited data and little detailed technical and economic evaluations. The estimated costs for a first-of-its-kind operation range from 200-900 €/tCO2 for L-DAC and 600-2400 €/tCO2 for S-DACIt is expected that through research and development (R&D), scale and political support, these costs will be significantly reduce. Future operations could reach costs of €100–600/tCO2 (L-DAC) and €100–1200/tCO2 (S-DAC), with median values of €210–330/tCO2 and €360/tCO2. DAC technologies require solvents and sorbents and are indirectly dependent on critical materials needed for the expansion of renewable energy sources. Their main environmental impacts are related to high consumption of energy, water and chemicals. Choosing a low-carbon energy source for the DACCS process is key, as it significantly affects environmental impacts and CO2 removal potential. DACCS requires less land compared to many other CO2 removal methods, especially those that rely on biomass.

The role of DACCS in the EU's climate goals

Permanent CO2 removal is needed alongside deep emissions reductions to meet EU and global climate goals. However, it is essential that Reducing emissions remained a priority, because removals alone cannot reverse the carbon budget overshoot. The most promising options for achieving large-scale permanent CO2 removals are DACCS and bioenergy with carbon capture and storage (BECCS)Both approaches will be needed in Europe, with limited biomass availability for BECCS or declining carbon sinks in the land use sector likely to increase reliance on DACCS.

Despite the high costs, scenario modeling suggests that DACCS may be necessary to achieve 40-60 Mt of CO₂ removal per year by 2040to keep the EU on track towards climate neutrality. However, uncertainties about cost developments and unproven large-scale deployment mean that its future role is difficult to predict, and over-reliance on technologies like DACCS should be avoided.

Investment needs and infrastructure

The expansion of DACCS between 2030 and 2040 will require significant close investmentsThe estimated costs of achieving 40 Mt of CO2 removal by 2040 range from €12 – €24 billion, depending on future cost reductions. Industrial deployment also depends on expanding CO2 transport infrastructure, which will require €9-23 billion by 2050, and rapidly increasing geological storage capacity beyond the 50 Mt target for 2030 to reach 250 Mt/year by 2040-2050, covering the needs of fossil CCS, BECCS and DACCS.

Recommendations for the EU policy framework

For the effective deployment of DACCS in the EU, it is essential a coherent and forward-looking policy frameworkKey recommendations include:

• Setting clear, binding goals for carbon removal that will recognize DACCS as a legitimate climate solution and provide certainty for investors.
• Full integration of DACCS into EU and national climate strategies and legislation, with a clearly defined role to avoid greenwashing or crowding out necessary emission reductions.
• Inclusion of DACCS in the EU ETS or through mandatory carbon removal credits to create a stable investment signal, but with careful implementation to maintain pressure to reduce emissions.
• Centralised EU regulatory framework to simplify permitting and reduce administrative complexity.
• Increased support for DACCS R&D through programs like Horizon Europe to reduce costs and advance technology.
• Support for co-location of DACCS devices near suitable geological storage sites to reduce transportation costs and simplify permitting.

Decisions in the near future will be crucial in determining the long-term role of DACCS technologies in meeting climate goals. Spring

Glossary of key terms

• Direct Air Capture (DAC): Technology that captures CO2 directly from the ambient air.
• DACCS (Direct Air Capture with Carbon Storage): The process of capturing CO2 directly from the atmosphere and its permanent geological storage or mineralization.
• DACCU (Direct Air Capture with Carbon Utilization): The process of capturing CO2 directly from the atmosphere and its subsequent use to produce products (e.g. fuels, materials) that can replace more carbon-intensive alternatives.
• Fixed DAC (S-DAC): A type of DAC technology that uses solid sorbents to selectively bind CO2 molecules. It is often characterized by modularity and the ability to use low-temperature heat.
• Liquid DAC (L-DAC): A type of DAC technology that uses liquid solvents (e.g. potassium hydroxide) to absorb CO2 from the air. It typically relies on established chemical processes.
• Decarbonization: The process of reducing or eliminating carbon emissions (especially CO2) into the atmosphere, often with the aim of achieving climate neutrality.
• Net emission reduction: It refers to the overall reduction in greenhouse gas emissions, taking into account carbon removals that offset residual emissions.
• Technology Readiness Level (TRL): A scale used to assess the maturity of a technology, with lower TRLs indicating early stages of research and development and higher TRLs indicating proven and commercially available technologies.
• Bioenergy with carbon capture and storage (BECCS): A technology that involves capturing CO2 emissions released during biomass combustion and their subsequent storage, resulting in the net removal of CO2 from the atmosphere.
• EU Emissions Trading System (EU ETS): A 'cap-and-trade' system for greenhouse gas emissions in the EU, which sets a limit on total emissions and allows for the trading of emission allowances to ensure cost-effective emission reductions.