Undermining climate action? Challenges of public-private co-financing of carbon removal in the Global North

Carbon dioxide removal (CDR) is increasingly seen as essential for mitigating climate change. In Global North countries like Denmark, Sweden and the UK, bioenergy carbon capture and storage (BECCS) projects have become a prominent component of national climate strategies. This perspective explores an emerging trend: the advancement of such projects through a co-financing model that combines state funding with corporate investment. While the specifics of these co-financing arrangements vary, we identify several risks associated with them. First, we argue that the model facilitates the double claiming of CDR climate benefits by both the national government and the corporate investor, which risks mitigation deterrence by inflating the apparent scale of climate action. Second, we contend that CDR projects that count towards Global North countries’ climate targets cannot be considered additional and therefore should not be sold as carbon offsets. Finally, we argue that market-based CDR risks favouring large corporations and affluent governments able to pay for carbon removal and storage space, raising concerns about global climate justice.