Pigou’s Advice and Sisyphus’ Warning: Carbon Pricing with Non-Permanent Carbon Dioxide Removal

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UPTAKE Webinar
8 April 2026, h. 14:00 CEST
To join the webinar, register here

The UPTAKE monthly webinar series returns, continuing its engaging discussions on carbon dioxide removal (CDR) technologies and the latest research developments. The next session in the series, dedicated to recent publications on CDR research, will focus on the paper Pigou’s Advice and Sisyphus’ Warning: Carbon Pricing with Non-Permanent Carbon Dioxide Removal.

Speaker: Friedemann Gruner, PIK
Moderator: Felix Knopp, PIK
Panelist: Magnus Drewelies, Ceezer

This paper develops a welfare and public economics perspective on optimal policies for carbon removal and storage (CDR) in permanent and non-permanent sinks. Non-permanent CDR reduces mitigation costs, even though the stored carbon is released into the atmosphere eventually. It may serve as bridge technology until permanent CDR becomes available. In contrast to permanent removals, non-permanent CDR does not reduce the optimal long-run temperature level. Its valuation differs from the social cost of carbon since a social cost of carbon removal arises from marginal damages caused by emissions released from non-permanent storage. We discuss three policy regimes that ensure optimal deployment of non-permanent CDR in terms of their informational and institutional requirements for monitoring, liability, and financing.


ORGANIZED BY:

The Industrial & Planetary Carbon Cycle Program at CMCC as part of the UPTAKE project. Coordinated by CMCC, UPTAKE seeks to support the sustainable expansion of CDR methods by developing reliable strategies through technical, theoretical, and practical analysis—plus interactive dialogue within a dedicated stakeholder forum.

UPTAKE is an EU-funded research project on CDR methods and knowledge coordinated by CMCC Foundation (EIEE Institute). 



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