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Clean Industrial Deal: another missed opportunity for scaling up carbon removal in Europe

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Key takeaways:

  • The CID acknowledges the need to create a business case for permanent carbon removal, but it mainly focuses on ETS integration as a way forward, missing the opportunity to propose other dedicated policies to drive CDR demand.
  • Several CID initiatives should be leveraged to strengthen EU carbon removal leadership: procurement, the Industrial Decarbonisation Accelerator Act, the Industrial Decarbonisation Bank, IPCEI, tax incentives, competitiveness funding etc.
  • Without direct support for carbon removal, the EU risks falling behind the US, Canada, and Switzerland, threatening both the EU’s climate goals and the economic opportunity to unlock a €220 billion annual market and 670,000 high-quality jobs in Europe.

Brussels, 25 February 2025: Today, the European Commission published its Clean Industrial Deal (CID), aiming to bring together climate and competitiveness under one overarching growth strategy. Last month’s Competitiveness Compass gave the carbon dioxide removal (CDR) sector a reason to hope for a roadmap with concrete proposals for the sector. Yet, despite acknowledging the urgent need to create a business case for permanent CDR, the CID fails to propose tangible deployment incentives for CDR scale up in the short and medium term.

Promising acknowledgement of the need to build a business case for permanent removals

Building on the net 90% emissions reduction target for 2040 expected in March, the CID emphasises the importance of long-term policy certainty. The CID’s emphasis on EU-made clean manufacturing signals Europe’s ambition to become a clean tech powerhouse — an ambition that should also extend to championing CDR. To that end, we welcome CID’s explicit recognition of the need to build a business case for permanent CDR to compensate for residual emissions from hard-to-abate sectors.

The CID recognises a €480 billion annual funding gap for the wider clean transition, which it proposes to address in part through the creation of new initiatives, and leveraging support through multiple existing channels:

  • EU-level mechanisms including the creation of a new Competitiveness Fund, enhanced Innovation Fund support, and a Horizon Europe fit-for-deployment call;
  • State aid and national support schemes;
  • Strengthened private investment through InvestEU and EIB collaboration.

However, it remains unclear whether and by how much these commitments will specifically target CDR.

Concerning lack of clear CDR roadmap threatens EU climate and competitiveness goals

The CID stresses the need for certainty and predictability in industrial policy. Yet, by mainly focusing on ETS integration, it ends up underdelivering those needs. An exclusive focus on long term compliance limits the ability for a wide portfolio of removals to come forward in the EU. There is a clear need for near-term interventions to support early CDR deployment and get innovative projects off the ground.

The EU risks lagging behind the US, Canada and Switzerland, which have already mobilised significant financial support for CDR,” said Rodica Avornic, Policy Director at Carbon Gap. With compliance measures only taking effect in at least 5 years, the EU urgently needs interim deployment incentives to scale up the CDR sector and be competitive. Several upcoming initiatives under the Clean Industrial Deal – such as the Industrial Decarbonisation Accelerator Act and the revision of procurement rules – must be leveraged to achieve effective CDR scale-up.

Looking forward: opportunities for CDR

Several CID initiatives must be leveraged to strengthen EU support for CDR:

  1. In revising EU public procurement rules, the EU should borrow from approaches we’ve seen in US (New York and New Jersey) and European countries (Finland and Switzerland), where procurement rules have promoted CDR integration into supply chains. Additionally, the EU must explore direct forms of procurement such as setting up a dedicated call under the Innovation Fund.
  1. The upcoming Industrial Decarbonisation Accelerator Act should incentivise heavy-emitting industries to integrate permanent CDR into decarbonisation strategies, as well as streamline permitting procedures while ensuring that sustainability criteria remain.
  1. EU funding programmes must explicitly and sufficiently target the full portfolio of CDR methods across all development stages. At least €2.6 billion are needed in the next EU funding cycle to support RD&I for CDR.
  1. The acceleration of Important Projects of Common European Interest (IPCEI) could unlock their potential for CDR, given the cross-border nature of CO2 infrastructure.
  1. The proposed Industrial Decarbonisation Bank should be a critical source of support for CDR. With contracts for difference complementing the compliance market in the 2030s, the Bank should explicitly recognise CDR in its scope and include targeted allocation rounds for different CDR methods.
  1. In its expected guidelines for tax incentives, the EU should borrow from the successful tax-based incentives for CDR in the US and Canada, enabling capital investments that get early-stage projects off the ground.

As the US steps back from its climate ambitions, the EU should not miss out on the opportunity to assume global leadership by putting CDR on the path to success. Failing to act now would sideline a sector critical to both EU climate goals and economic growth. By 2050, CDR could unlock a €220 billion annual market, create 670,000 high-quality jobs, drive innovation, and solidify Europe’s position as a global leader in the clean economy. The implementation of the Clean Industrial Deal is an opportunity to get this right.

END OF PRESS RELEASE

NOTES FOR EDITORS

Carbon Gap is an independent, philanthropically funded non-profit organisation focused on rapidly and responsibly scaling up carbon dioxide removal in Europe, as an important complement to emissions reductions.

Useful materials:

Contact details of Carbon Gap experts available for comment:

Media enquiries must also be addressed to Carbon Gap’s communications team: [email protected] (EN, FR) or [email protected] (EN, FR).

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Quantum Computing Breakthrough: Data Security Implications

MIT’s new quantum algorithm could revolutionize data processing, posing significant challenges for current cryptographic systems. This article explores the implications for data security and potential solutions to counteract quantum threats.

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The recent breakthrough in quantum computing by researchers at MIT marks a pivotal moment in the field of data security. On August 19, 2026, Nature published the details of a new quantum algorithm capable of processing data at speeds previously unimaginable. While this innovation holds enormous potential for advancing machine learning and other computational fields, it simultaneously presents a formidable challenge to the current cryptographic systems relied upon to safeguard sensitive information.

At the core of contemporary data security is the reliance on encryption techniques that depend on the complexity of certain mathematical problems, such as the factoring of large numbers, which are currently infeasible for classical computers to solve within a practical timeframe. However, quantum computers, with their ability to perform calculations exponentially faster than traditional machines, threaten to render these encryption methods obsolete. This development could have profound implications for sectors that prioritize data security, including finance, healthcare, and government, where sensitive data is at risk of exposure.

The immediate concern for cybersecurity experts is the potential for quantum computers to crack widely used encryption protocols, such as RSA and ECC, which form the backbone of secure internet communications. The computational power unleashed by quantum algorithms could theoretically decrypt encrypted data in a fraction of the time required by classical computers, leaving digital communications vulnerable to interception and exploitation.

In response to this looming threat, researchers and industry experts are actively exploring the development of quantum-resistant algorithms. These algorithms are designed to withstand the capabilities of quantum computing, ensuring the confidentiality and integrity of data even in a post-quantum world. Efforts in this direction include the study of lattice-based cryptography, hash-based signatures, and multivariate polynomial equations as potential foundations for secure encryption systems.

The urgency to develop and implement quantum-resistant cryptography is underscored by the rapid pace of advancements in quantum technology. Tech companies, governments, and academic institutions are investing heavily in research to safeguard their data infrastructures against quantum threats. The transition to quantum-resistant systems, however, is not without its challenges. It requires a comprehensive overhaul of existing cryptographic frameworks and widespread adoption across industries, a process that demands both time and resources.

Despite these challenges, the potential benefits of quantum computing in fields such as artificial intelligence, pharmaceuticals, and materials science cannot be overlooked. The same capabilities that pose a threat to data security also offer the promise of unprecedented advancements in computational power, enabling breakthroughs that were previously beyond reach.

As the world stands on the brink of a quantum revolution, the dual-edged nature of this technological leap is clear. While the security of our digital world faces new threats, the opportunity for innovation and progress is equally profound. The path forward will require a concerted effort to balance the risks and rewards of quantum computing, ensuring that the transformative potential of this technology is harnessed responsibly and securely.

In the coming years, as quantum technologies continue to evolve, the focus will be on developing robust standards for quantum-resistant cryptography and fostering collaboration between academia, industry, and government to navigate this new frontier. The race to secure our digital future in the face of quantum capabilities is not just a technical challenge but a strategic imperative that will shape the landscape of cybersecurity for decades to come.

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AI-Driven Tools Propel Mars Exploration to New Heights

NASA’s latest Mars mission features AI-driven tools in its rover, enabling autonomous navigation and faster data transmission, marking a significant advancement in space exploration technology.

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NASA’s latest mission to Mars has captivated both scientific communities and the public, as the new rover equipped with AI-driven exploration tools begins its journey across the Martian landscape. Wired’s August 2026 report highlights the rover’s ability to autonomously navigate the challenging terrain while making real-time decisions, significantly enhancing the efficiency of data collection. This innovation is poised to revolutionize the way robotic missions are conducted in space.

The rover’s sophisticated communication systems represent another leap forward, allowing for faster and more reliable data transmission back to Earth. These advancements mean that scientists can receive critical information more swiftly, enabling them to adjust mission parameters as needed. According to Wired, this capability is essential for responding to unexpected findings and maximizing the scientific value of each mission.

Moreover, the integration of AI tools in the rover’s design marks a pivotal shift towards reducing dependence on Earth-based commands. As Wired notes, this development could pave the way for future missions that operate with greater autonomy, setting the stage for more complex and prolonged explorations of Mars. The implications of this technology extend beyond current missions, suggesting a future where human exploration of Mars is supported by highly capable robotic counterparts.

As NASA continues to push the boundaries of space exploration, the success of this mission will likely influence the design and execution of future endeavors. The potential for these AI-driven tools to transform space exploration is immense, promising a new era of discovery and innovation on the red planet and beyond.

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Quantum Computing Breakthroughs: Disrupting Industries with Oxford’s Innovations

A recent breakthrough in quantum computing at the University of Oxford promises to disrupt multiple industries by significantly enhancing computational capabilities. Explore the technological implications and potential disruptions poised to redefine sectors.

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In May 2026, the University of Oxford announced a significant breakthrough in the field of quantum computing, unveiling an advanced error correction algorithm that has the potential to transform computational capabilities. This development is not just a scientific triumph; it heralds a new era of technological disruption across multiple industries. Quantum computing, long anticipated as the next frontier in technology, promises to solve complex problems beyond the reach of classical computers, and Oxford’s latest advancement brings this closer to reality.

At the core of this breakthrough is the enhancement in quantum error correction, a critical component that addresses the inherent instability of qubits, which are the fundamental units of quantum information. Traditional computers use bits of 0s and 1s, but quantum computers operate on qubits, which can exist in multiple states simultaneously. This superposition allows quantum computers to process information exponentially faster than classical computers. However, qubits are notoriously prone to errors due to environmental noise and operational inaccuracies. Oxford’s new algorithm significantly improves the error correction process, maintaining qubit stability longer and allowing extended computational tasks to be performed accurately.

The implications of this are profound. Industries ranging from pharmaceuticals to finance stand on the cusp of disruption as quantum computing offers the ability to model complex molecular structures, optimize large-scale financial portfolios, and even revolutionize artificial intelligence algorithms. In pharmaceuticals, for example, quantum computing can expedite drug discovery by accurately simulating molecular interactions, potentially reducing the time and cost associated with bringing new drugs to market. Similarly, in finance, quantum algorithms can optimize trading strategies and risk management with a precision unattainable by current technologies.

Moreover, the ripple effects of such a leap in computational power extend to data encryption and cybersecurity. Quantum computers possess the potential to decrypt classical encryption methods, prompting a race for quantum-resistant cryptography. This necessitates a paradigm shift in how we secure digital information, affecting every sector that relies on data security.

Despite the tremendous promise, the transition to quantum computing is not without its challenges. The infrastructure required to support quantum technologies is expensive and complex. There is also a significant skills gap; experts in quantum computing are scarce, and training a new generation of scientists and engineers is imperative. Furthermore, ethical considerations regarding the power of quantum computing must be addressed, particularly in terms of privacy and security.

Looking forward, as quantum computing continues to evolve, industries will need to adapt swiftly to harness its capabilities. Early adopters who invest in quantum technologies and develop quantum-ready strategies will likely dominate in the coming decade. As Oxford’s breakthrough demonstrates, the race is on to fully realize the potential of quantum computing and redefine the boundaries of what is technologically possible.

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