Direct Air Capture: Scaling Up to Legitimize the Voluntary Carbon Market

Overview of Direct Air Capture

Direct Air Capture (DAC) presents an innovative approach to climate change mitigation and carbon credit generation by extracting carbon dioxide (CO₂) directly from the atmosphere. Unlike traditional methods targeting emissions at their source, DAC can be deployed anywhere, providing a scalable and versatile method for reducing atmospheric CO₂levels. DAC technology is categorized into two main types: Solid DAC (S-DAC) and Liquid DAC (L-DAC). In S-DAC, solid materials capture CO₂, while L-DAC utilizes a liquid solution. Both methods then apply heat to release the captured CO₂ for containment.

Economic Challenges of DAC

Despite its potential, DAC is currently the most expensive form of carbon capture due to the low concentration of atmospheric CO₂, necessitating higher energy consumption and costs ranging from $600 to $1,000 per ton of CO₂. For DAC to be viable on a large scale, costs need to fall below $200 per ton by 2050, ideally closer to $100 per ton. However, technological advancements have not proven insurmountable in other green technologies: the cost of solar photovoltaic (PV) technology has fallen by nearly 90% over the past decade, and wind energy costs have dropped by over 70%. There is hope for similar reductions in DAC costs.

Current Deployment and Future Potential

Due to economic and infrastructure challenges, only 27 operational DAC plants worldwide capture roughly 10,000 metric tons of CO₂ annually. If all 130 planned DAC projects are realized, the technology could capture approximately 3 million tons total of CO₂ by 2030. This scalability can bolster the voluntary carbon market by providing a steady supply of high-quality carbon credits, essential for achieving net-zero emission targets in both the public and private sectors.

Advancements in DAC

Emerging technologies offer promising avenues to enhance DAC's efficiency. Electrochemical Swing Adsorption (ESA-DAC), which uses electrical charges to adsorb and release CO₂, and porous zeolites for effective CO₂ capture are being studied. Additionally, passive DAC systems, which emulate natural CO₂ capture processes with lower energy input, demonstrate DAC’s versatility and scalability.

Impact on the Carbon Credit Market

The scalability of DAC would revolutionize the voluntary carbon market by expediting the availability of engineered (non-nature based) credits. Currently, over 90% of the US market is dominated by nature-based credits. While valuable, these nature-based solutions face challenges related to permanence, additionality, and verifiability. For example, reforested areas are susceptible to wildfires, diseases, and illegal logging, which can reverse the carbon sequestration benefits. At the same time, the measurement and monitoring of these projects can be difficult to quantify reliably, raising concerns about their effectiveness.

DAC-based carbon removal credits, however, provide a more refined solution. CO₂ captured through DAC is permanently stored underground or utilized in long-lasting products, ensuring lasting CO₂ removal.Coupled with precision measurement technology, the impacts of DAC on curbing atmospheric emissions are easily monitored and verified.

The Role of Clear Rating

Navigating the evolving carbon credit market requires reliable information and expert analysis. Clear Rating, a prominent carbon credit rating agency, offers in-depth reports assessing the effectiveness and legitimacy of carbon credit projects. With DAC expansion underway, ClearRating’s expertise ensures accurate evaluation of DAC-based credits, enhancing transparency and trust in the carbon credit market. This enables companies and investors to make informed decisions, leading to a more reliable and impactful carbon market.

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