Policy research to formulate project methodologies for carbon credits with direct air carbon capture & utilization (DACCU) technologies

Direct air carbon capture and utilization (DACCU) technologies have been in spotlight as one of key carbon dioxide removal (CDR) approaches to achieve carbon neutrality. In Korea, public R&D on DACCU technologies started from 2023, and private firms with their own original DACCU technologies have emerged with laboratory- and small-scale demonstration experiences. For DACCU technology to be demonstrated and deployed in a large and commercial scale, the development and application of project methodologies are essential to calculate mitigation outcomes in carbon market. However, the actual practices of developing project methodologies for DACCU technologies remain limited in Korea with only two cases, one successful and the other unsuccessful in the methodology approval. Thus, this paper compares these two cases to identify points to be considered in the development of project methodologies for DACCU technologies. For an analytical approach, this paper sets six core elements of measurement·reporting·verification (MRV): (i) system boundary, (ii) baseline scenario, (iii) data quality, (iv) additionality (other than environmental additionality), (v) permanence and reversal risk, and (vi) alignment with international standards. Two rounds of in-depth written surveys were undertaken with two Korean firms. As analytical results, points of consideration include defining a comprehensive system boundary definition (including upstream emissions), setting a zero baseline for removal activities, obtaining a long-term and continuous measurement data, and ensuring compatibility with international standards. Firms’ strategic methodology development and the government’s targeted policy support for the methodology development are essential.