The following is an article published in Carbon Herald on June 13, 2025. 

Turning Captured CO₂ Into Verified Carbon Credits and Real Revenue

By Urszula Szalkowska, managing director, Europe, EcoEngineers

Biogenic carbon dioxide (CO₂)—the emissions released when biomass or organic waste is converted into energy—has long been overlooked as a tool in climate action. Historically deemed ‘neutral’ in carbon accounting because it originates from plant matter that absorbed CO₂ during growth, these emissions have flown under the radar.

But neutrality is no longer enough.

As the European Union (EU) intensifies efforts to achieve net-zero emissions by 2050, a new opportunity has emerged: capturing and monetizing biogenic CO₂. When captured and stored, this CO₂ qualifies as carbon removal. When utilized in processing or consumer products, this CO₂ can be a valuable emission reduction. In many cases, biogenic CO₂ has become a commodity that can now be quantified, certified, and monetized as a verified credit or environmental attribute.

A New Carbon Economy: Monetizing Biogenic CO₂ Emissions

Industries such as ethanol production and biomass power plants emit biogenic CO₂ as an inherent component of their operations. With modest upgrades, these facilities can capture these emissions and turn them into high-value carbon credits or commercial products.

The captured CO₂ can be either:

• Utilized in products like synthetic fuels, green chemicals, or construction materials, helping decarbonize supply chains; or
• Permanently stored via nature-based solutions or industrial methods like bioenergy with carbon capture and storage (BECCS).

In either case, the project may be able to generate additional revenues by reusing the CO₂. Depending on how the environmental attribute is applied—either to the original fuel or the end product—these credits can increase revenue in both compliance and voluntary carbon markets (VCM).

EU Policy Is Rapidly Catching Up 

The EU’s climate strategy is ambitious yet realistic. Decarbonization without deindustrialization is the ultimate goal, particularly for hard-to-abate sectors such as steel, cement, and aviation. To hit net-zero targets, the EU estimates that between 400 to 500 million metric tons of residual emissions must be offset annually by 2050. That’s where carbon removals come in.

To catalyze this shift, the EU introduced the Carbon Removal Certification Framework (CRCF) in 2024—a rigorous voluntary standard for validating permanent removals such as BECCS and carbon farming.

The CRCF emphasizes:

• Accuracy in measuring carbon removals.
• Additionality beyond practices required by mandatory regulations.
• Durability through long-term storage and monitoring.
• Sustainability with environmental and social safeguards.

The EU also plans to integrate carbon removals into its Emissions Trading System (ETS) and explore new financing mechanisms, such as Carbon Contracts for Differences (CCfD) and government procurement of carbon removals. CCfD is a special type of long-term delivery contract that has risen to prominence as a mechanism to provide public funding to newly built electricity generation capacity in Europe.

The EU carbon removal sector is still new and relies on a limited number of financing tools. Investment decisions mainly rely on Member State subsidies or the VCM, a decentralized market where private actors can voluntarily buy and sell carbon credits.

The sector needs more support in the coming years, as outlined in the Industrial Carbon Management Strategy, including: 

• Developing the EU’s CO₂ transport and storage infrastructure.
• Establishing a single market to deploy large-scale carbon value chains across Europe without trade barriers.
• Enhancing investments through the EU Innovation Fund, Recovery and Resilience Facility, and the European Investment Bank.
• Developing support schemes, such as CCfD and/or government procurement of carbon removals. The United States (U.S.) and Canada have recently launched similar schemes.

In addition, other elements may also contribute to the enhancement of the EU carbon removal sector:

• Integrating carbon removals into the EU ETS—currently under consultation procedure.
• Supporting the role of the cross-border and international voluntary or mandatory carbon markets on a global stage could drive private finance. The Green Claims Directive, currently being discussed in the Parliament and Council, has an important role to play for the latter.

Case in Point: BECCS Projects Are Already Delivering

Stockholm Exergi, a Swedish energy provider, offers a glimpse into this future. In collaboration with EcoEngineers and Drax, Stockholm Exergi developed the first-of-its-kind monitoring, reporting, and verification (MRV) methodology for BECCS. Backed by the Swedish government with nearly $2 billion in funding, the project will permanently remove 800,000 tons of CO₂ annually, equivalent to the city’s road traffic emissions.

Private sector buyers like Stripe, Alphabet, Shopify, Meta, and McKinsey, among others, have locked in long-term purchase agreements worth US$48.6 million for delivery between 2028 and 2030. The deal is facilitated by Frontier, an advance market commitment initiative, on behalf of major corporate buyers.

In the U.S., Red Trail Energy LLC (RTE), an ethanol producer recently acquired by Gevo Inc., teamed with EcoEngineers to verify its CO₂ capture under the Puro.earth registry. The carbon removal credits generated by RTE were the first from an ethanol producer sold into the VCM, setting the standard for other industries to follow globally.

The Bottom Line: A Climate Solution That Pays

With the global carbon removal market expected to exceed $25 billion by 2029, biogenic CO₂ offers a low-barrier entry point for industries already emitting it. And with corporate climate pledges piling up, the demand for verified removals is expected to grow.

Europe is building the regulatory infrastructure to make carbon removals viable, from funding innovation to certifying outcomes. Meanwhile, companies that act early will enjoy a first-mover advantage, shaping the market and setting standards. Capturing biogenic CO₂ isn’t just about hitting environmental, social, and governance (ESG) targets. It’s a way to future-proof operations, monetize sustainability, and lead the energy transition.

About the Expert

Urszula Szalkowska is managing director, Europe, and leads EcoEngineers’ European practice, supporting both European-based clients and international clients doing business in the EU. Ms. Szalkowska has more than two decades of experience working in renewable energy, fuels, climate change, and transportation. She has a deep understanding of regulations, business impact, and strategic communications in the EU. She advises businesses on compliance with national regulations in EU MS and helps navigate the highly regulated renewable energy markets. Ms. Szalkowska coordinates global climate policy and regulations in the U.S. and the EU.

For more information about how we help clients navigate the energy transition in Europe and globally, contact: 

Urszula Szalkowska, Managing Director, Europe | uszalkowska@ecoengineers.us 

About EcoEngineers

EcoEngineers, an LRQA company, is a consulting, auditing, and advisory firm exclusively focused on the energy transition and decarbonization. From innovation to impact, EcoEngineers helps its clients navigate the disruption caused by carbon emissions and climate change. Its team of engineers, scientists, auditors, consultants, and researchers live and work at the intersection of low-carbon fuel policy, innovative technologies, and the carbon marketplace. For more information, visit www.ecoengineers.us.