US lawmakers reintroduce carbon removal bill to boost CDR market
A group of Democratic lawmakers has reintroduced legislation aimed at accelerating the deployment of carbon dioxide removal (CDR) technologies in the United States by using federal procurement to create long-term demand for carbon removal services.
The Carbon Dioxide Leadership Act was reintroduced by Representatives Paul Tonko of New York and Scott Peters of California, alongside Senators Sheldon Whitehouse of Rhode Island and Chris Coons of Delaware. The proposal seeks to expand investment in technologies capable of permanently removing carbon dioxide from the atmosphere as part of broader efforts to address climate change.
The legislation would require the US Department of Energy (DOE) to procure increasing volumes of carbon dioxide removal using direct air capture and other durable technology-based removal methods. Supporters say the approach is intended to provide developers with a predictable market that encourages investment and helps lower costs as the sector matures.
The bill also includes provisions requiring robust measurement, monitoring, reporting and verification standards for carbon removals, alongside public engagement requirements designed to improve transparency and community participation.
To encourage technological innovation while reducing costs over time, the proposal would establish a declining price ceiling for carbon removal purchases, allowing the DOE to support emerging technologies with strong long-term potential while incentivising greater efficiency as the industry expands.
In addition, the legislation would reserve a portion of procurement funding for newer carbon removal technologies, with the aim of supporting a diverse portfolio of approaches rather than concentrating investment in a single solution.
The bill also directs the DOE to prioritise projects that promote domestic job creation, environmental justice, technological innovation and community benefits.
Paul Tonko, Ranking Member of the House Subcommittee on Environment, said carbon dioxide removal should form part of a broader strategy to tackle climate change while supporting innovation, clean energy investment and employment.
Sheldon Whitehouse, Ranking Member of the Senate Environment and Public Works Committee, said large-scale carbon removal would be necessary alongside emissions reductions if climate goals are to be achieved.
Chris Coons said investment in carbon removal technologies would help strengthen the US economy while supporting domestic leadership in emerging clean energy industries.
Carbon dioxide removal technologies are increasingly viewed as an important complement to emissions reduction efforts, particularly for addressing residual emissions from sectors that are difficult to decarbonise. However, the industry continues to face challenges related to high costs, limited commercial deployment and the need for consistent policy support. Proponents argue that government procurement programmes can play a key role in creating early markets and accelerating the commercialisation of carbon removal technologies.
