Carbon Removal Accounting for a Sustainable Future: Distributing CO2 Flows in Multiservice Systems

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 CO2, carbon registries offer detailed procedures to calculate the carbon removal credits. However, the registries do not address how to distribute CO2 flows when CDR provides additional services. Standardized, transparent rules for distributing CO2 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 CO2 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.