Background and problem statement
The European Union has set itself an ambitious target of achieving climate neutrality by 2050. Whilst renewable energy sources offer considerable potential when it comes to decarbonising our economy, completely eliminating all emissions within this timeframe does not appear realistic. It is therefore all the more crucial to sequester and remove additional CO2 from the atmosphere.
The EU’s economic policy measures to reduce CO2 emissions date back to 2005. At that time, a system of trading in allowances entitling holders to emit was introduced for energy-intensive sectors. With the Carbon Removal Certification Framework (CRCF), the EU established a Europe-wide, standardised framework in 2024 for voluntary carbon sequestration and removal measures. These certificates, known as ‘carbon offset credits’, can be sold to companies or private individuals wishing to offset their CO2 emissions in this way and therefore represent a potential source of revenue. If new products are manufactured from the sequestered carbon, this creates additional revenue potential.
From a technological perspective, there are, in principle, a number of different approaches. However, due to the complex regulatory, technological and economic environment, many of these are currently largely inaccessible to SMEs. Furthermore, the variety of possible business models arising from the new regulatory framework is both a blessing and a curse. Whilst there are virtually no limits to creativity, not everything that may sound promising at first is economically viable.
Aims and Results
The question of how the implementation of CO2 sequestration activities can be made profitable for SMEs in future is being investigated by an interdisciplinary consortium as part of the “C2B – Carbon to Business” project. At present, there is a lack, on the one hand, of a consistent framework for assessing the capture and storage of CO2 and, on the other hand, of the relevant specific calculation methods in certain areas. As a first step, therefore, an analysis of the technical, economic and regulatory framework is being carried out. An AI-assisted system is also being used to process the large volumes of data within a reasonable timeframe.
Building on this, a practical procedure for formulating business models (particularly for SMEs) is being designed, taking into account specific costs and revenues as well as the general market environment. Six use cases ensure that the new methodology can be applied across a wide range of sectors. The focus is on the construction sector (solid timber building products and bio-based insulation materials), the metal industry (reuse of slag), agriculture (biochar for CO2 storage and peat alternatives made from waste materials) and the food industry (plant-based proteins from food waste).
Using a freely accessible web application developed as part of the project, companies will in future be able to assess the basic viability of their project ideas quickly and with minimal effort. If this initial check yields a positive result, there will be the option to draw up a detailed business model, including CO2 accounting and a profitability assessment. C2B thus supports SMEs in navigating a promising yet equally complex market environment, minimising risk whilst simultaneously providing greater planning certainty. The resulting impact extends far beyond the corporate level, given that advancing climate change is one of the greatest threats of our time.
