Report: U.S., China Must Collaborate on Carbon Dioxide Removal

Reducing greenhouse gas emissions alone might not be enough to reach climate action goals: The world’s two biggest emitters—the United States and China—must cooperate to accelerate the development of methods that actively remove carbon dioxide from the atmosphere, according to a new report from researchers from the University of Maryland and Chinese Ministry of Science and Technology.

UMD’s Center for Global Sustainability and the Administrative Center for China’s Agenda 21 released the study this week during the 29th United Nations Climate Change Conference of the Parties (COP29) in Baku, Azerbaijan.

The report offers a comprehensive overview of policies and practices on carbon dioxide removal (CDR) at both national and subnational levels, aiming to increase understanding of how different approaches could mitigate climate change while identifying key opportunities where the two countries can work together to accelerate CDR.

“In tackling the urgent challenge of climate change, stakeholders in both the U.S. and China must collaborate in accelerating the advancement of CDR technologies and commercializing CDR projects,” said CGS Research Assistant Yingtong Li, the report’s lead author.

The study analyzes about 900 CDR-related policies and some 350 CDR projects from both countries, and provides policy recommendations to enhance future U.S.-China collaboration on CDR. Among the methods for CDR are “direct capture” technologies that pull carbon out of the air or from industrial processes, reforestation and maintenance of wetlands to store carbon and prevent it from entering the atmosphere.

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By capturing and durably storing CO₂ from the atmosphere, CDR helps both countries contribute to the 2016 Paris Agreement’s target of limiting global warming to below 2 degrees Celsius. The U.S. and China view CDR as key to decarbonizing hard-to-abate economic sectors and reaching net-zero emissions by mid-century.

The report shows that policy instruments for CDR development vary significantly between the U.S. and China. Federal laws and diverse economic incentives, particularly the 45Q tax credits that encourage power plants and other industrial sources to decarbonize, are driving state-level interest in developing CDR in the United States, while China has primarily focused on strategic planning and voluntary programs.

The spatial distribution of CDR policies is also uneven across U.S. states and Chinese provinces, highlighting the need for more explicit and localized policy frameworks.

CDR projects in the United States focus on industrial processes, natural gas, bioenergy with carbon capture and storage and direct air capture, supported by a mix of federal and state-level policies. States including Illinois and California offer targeted incentives to meet local energy needs while others lack strong economic support for CDR technologies, leading to a heavy reliance on federal funding.

In contrast, CDR projects in China are largely based in the chemical industry, power plants, steel production, and the oil and gas sectors, with CO₂ used primarily for enhanced oil recovery. China places less emphasis on government funding and financial incentives. While regions like Shandong and Tianjin are pioneering the use of carbon markets, many provinces lack specific financial incentives for CDR, revealing gaps in infrastructure and support.

The report highlights that the U.S. has clear, enforceable regulations like the EPA’s New Source Performance Standards, with some states, such as Colorado, requiring feasibility assessments for carbon capture. In contrast, China’s CDR policies are still developing, focusing on point-source emissions with stricter policies in certain provinces but a lack of comprehensive frameworks elsewhere. While the U.S. has an established tracking and reporting system, China’s efforts are in the early stages, primarily focused on pilot projects and regional initiatives.

“To meet these crucial climate goals, we need to implement comprehensive and effective mitigation strategies globally,” said Mengye Zhu, CGS assistant research professor and co-author of the report. “Enhancing CDR efforts by strengthening enforcement mechanisms, addressing regional disparities, and increasing investments in CDR technologies—such as bioenergy with carbon capture and storage and direct air capture—are essential for achieving the target of keeping global warming below 2 degrees Celsius.”