Energy transition is happening globally and in Australia and Germany. It is occurring in response to rapidly changing technology costs and as countries move to implement policies in line with the Paris Agreement goals. This transition poses policy and technological challenges. If managed well, it can also deliver great economic opportunities in both Australia and Germany.

Insights about the implications of the global energy transition for Australia and Germany that have become evident from the Energy Transition Hub’s work. A series of papers have been published by the Energy Transition Hub to share these insights.

This paper focuses on carbon dioxide removal (CDR) and utilisation.

Large-scale carbon dioxide removal is another essential component of any transition that limits warming to 1.5°C, or even to 2°C, unless the pace of mitigation to 2030 increases significantly. CDR is needed to complement the transformation in other sectors: it is not an alternative to rapid deployment of low-emissions technologies across the economy. CDR could create opportunities for Australia as a source of nature-based solutions, bioenergy with carbon capture and storage (BECCS) or direct air capture with CCS (DACCS), and for Germany as a provider of carbon capture and utilisation (CCU) technologies. 

This is one paper in a series of four as part of the Energy Transition Hub's Synthesis Reports.