An analysis released by the Rhodium Group on Wednesday indicates that the United States government needs to significantly ramp up spending on carbon dioxide removal (CDR) technologies to mitigate the impacts of extreme climate change. According to the report, the U.S. should aim to invest roughly $100 billion annually in CDR efforts by 2050, a stark increase compared to current commitments.
This proposed expenditure is approximately 20 times greater than what lawmakers have previously allocated for carbon removal initiatives, emphasizing the substantial gap between existing funding levels and what is deemed necessary to address climate challenges effectively. The report highlights that such an investment would be equivalent to the entire budget of the Department of Agriculture, underscoring the scale of financial commitment required.
The analysis arrives amidst a contentious political landscape surrounding climate policy, with debates over the direction of U.S. environmental initiatives intensifying. While some advocate for robust investment in carbon removal technologies as part of a comprehensive approach to climate action, others, particularly within the Republican Party, remain skeptical and prioritize opposition to progressive climate policies such as the Green New Deal.
Rhodium’s assessment acknowledges the concerns of progressive critics who view substantial government subsidies for carbon removal as potentially diverting attention and resources away from more immediate emission reduction efforts. However, it also emphasizes the imperative of CDR in meeting global climate targets, particularly in scenarios where emissions reductions alone may not be sufficient to prevent warming beyond 2 degrees Celsius.
The report outlines various strategies for increasing federal support for carbon removal, including the implementation of a permanent procurement program and the expansion of tax credits. Despite acknowledging the political challenges associated with securing significant funding for CDR initiatives, Rhodium suggests that incremental steps may pave the way for more ambitious measures in the future.
While the analysis acknowledges the criticisms and uncertainties surrounding carbon removal technologies, it emphasizes the importance of incentivizing approaches that balance effectiveness in reducing emissions with minimizing costs to taxpayers. Ultimately, the report underscores the urgent need for concerted action and substantial investment in CDR to mitigate the most severe consequences of climate change.
