Removal certificate pricing

ONCRA Removal Certificates are sold at prices that effectively cover the cost of carbon removal, with a premium for research, development and innovation (RD&I). Removers set their own prices. The current ETS price is our advisory price point.

Pricing of carbon removal certificates

ONCRA removal certificates are sold at prices that effectively cover the cost of carbon removal, with a premium for research, development and innovation (RD&I). The price is ultimately set by the Removers and evaluated constantly, with ONCRA setting the price floor. In all cases it has to be higher than the actual removal cost. In this way, buyers and investors support much needed research, development and innovation. After all, a price that is too low offers no certainty of actual carbon removal, and hence no climate benefits nor transition finance.

The EU ETS price is a guideline for the ONCRA removal certificate price. The EU ETS market is the oldest and one of the most active carbon markets supported by the European Union. The European Regulation 2013 /1143 laid the foundation for the appointment of EEX Ag as the auction platform for emission allowances.

However, the EU ETS market is not about removal but trades European emission allowances; the right for industries to emit a ton of carbon dioxide. We would like to see the EU ETS and other markets to also include payments for carbon removal.

The actual damage a ton of CO2 in the atmosphere does to our planet and economy is another anchor for the price point. These costs are estimated to range from €353/tCO2 (Ricke et al, 2018) to about €865 (Umwelt Budesamt 2022). The Province of Utrecht for example uses this price point, €875 per ton, for actual project assessments (‘maatschappelijke kosten baten analyse).

A final price indication can be found at the open carbon removal market dashboard at cdr.fyi, which lists an average price of $305,58/tCO2 removed.