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

The guide argues that US states are uniquely positioned to scale the carbon dioxide removal (CDR) industry by leveraging their specific geographies and regulatory authority. It outlines a framework for state leadership based on four core pillars: adopting approach-neutral and performance-based definitions of CDR, setting explicit removal targets aligned with carbon budgets, creating clear regulatory and permitting environments, and ensuring community-supported deployment through transparency and equity. The document emphasizes that CDR should complement, not replace, aggressive emissions reductions to avoid moral hazard.

• 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.
• To ensure policy remains future-proof as the field evolves, states should use approach-neutral definitions of CDR and apply performance-based criteria requiring that removals be net-negative, additional, and verified.
• States should establish explicit removal targets based on carbon budgets and historical emissions to prevent CDR from deterring emissions reduction efforts. These targets should be set as frequent, intermediate goals approximately every five years after 2030.
• A lack of clear regulatory and permitting frameworks is a primary barrier to CDR deployment; states can accelerate progress by clarifying permitting pathways and potentially designating a single agency to coordinate implementation.
• Safe deployment requires mandates for transparency, ongoing monitoring throughout a project's life cycle, and inclusive community engagement practices such as consent-based siting and community benefits agreements.
• Some US states have already implemented 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} }