US States and Carbon Dioxide Removal: Leadership Opportunities and Key Principles for Policymakers

This guide outlines how US states can leverage carbon dioxide removal (CDR) for economic development and climate goals. It recommends that states adopt approach-neutral, performance-based definitions of CDR, set intermediate removal targets based on carbon budgets, and create streamlined regulatory environments. The document emphasizes the necessity of inclusive community engagement, transparency, and the prioritization of co-benefits for disadvantaged communities to ensure safe and equitable deployment.

• The emerging carbon dioxide removal (CDR) market represents a significant economic opportunity for US states, with estimates suggesting it could reach between $20 billion and $135 billion by 2040.
• State policymakers are encouraged to adopt approach-neutral and performance-based definitions of CDR to ensure policies remain flexible as the field evolves. At a minimum, CDR should be defined as 'net-negative', 'additional' (meaning removals exceed what would have occurred naturally), and 'verified' by an independent entity.
• To prevent CDR from undermining emissions reduction efforts, states should set explicit targets for both decarbonization and removals. These targets should be based on carbon budgets—considering historical and ongoing emissions—and established as a series of intermediate goals approximately every five years after 2030.
• States can accelerate CDR deployment by creating regulatory roadmaps, streamlining permitting processes, and designating a single agency to coordinate implementation across different government departments.
• Financial support for the CDR industry should be predictable and consistent, utilizing grants, tax credits, and support for research and pilots, such as providing cost-shares for federal funding applications or allowing use of state land.
• Safe and community-supported deployment requires inclusive, two-way engagement, mandated transparency regarding project data, and the prioritization of projects that offer quantifiable co-benefits to disadvantaged communities or explore co-ownership models with tribes and local groups.
• Several US states have already initiated CDR-related policies: California has integrated direct air capture credits into its low carbon fuel standard, Colorado is developing a carbon management roadmap, and six states have signed an MOU for a regional CO2 transport network action plan.

APA

RMI (2024). US States and Carbon Dioxide Removal: Leadership Opportunities and Key Principles for Policymakers. https://rmi.org/resources/us-states-and-carbon-dioxide-removal-leadership-opportunities-and-key-principles-for-policymakers/

Chicago

RMI. US States and Carbon Dioxide Removal: Leadership Opportunities and Key Principles for Policymakers. 2024. https://rmi.org/resources/us-states-and-carbon-dioxide-removal-leadership-opportunities-and-key-principles-for-policymakers/.

Wikipedia

{{cite report |author=RMI |title=US States and Carbon Dioxide Removal: Leadership Opportunities and Key Principles for Policymakers |date=30 October 2024 |url=https://rmi.org/resources/us-states-and-carbon-dioxide-removal-leadership-opportunities-and-key-principles-for-policymakers/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2024states, author = {{RMI}}, title = {{US States and Carbon Dioxide Removal: Leadership Opportunities and Key Principles for Policymakers}}, institution = {RMI}, year = {2024}, month = oct, url = {https://rmi.org/resources/us-states-and-carbon-dioxide-removal-leadership-opportunities-and-key-principles-for-policymakers/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }