The Futura Foundations have granted funding for the research project “Establishing a credible Nordic CDR market: Challenges and opportunities”
The project explores the development of a voluntary carbon market, focusing on Carbon Dioxide Removals (CDR), and its integration with existing systems like the EU ETS. Unlike traditional commodity markets, where pricing is based on product characteristics, CDR valuation depends largely on process characteristics, requiring transparency and legitimacy to establish a credible and liquid market. By analyzing past challenges in nature-based carbon credits and studying existing voluntary carbon market initiatives, the project aims to identify key factors for establishing a successful market. It will assess standardization needs, pricing mechanisms, and verification processes while considering regulatory frameworks and stakeholder perspectives. The findings will support businesses, policymakers, and market participants in shaping a robust CDR market by 2030. Led by Conny Overland (University 91̽) and Karolina Unger (KLIMPO), the project runs from April 2025 to October 2026.
