Every tonne of CO2 emitted generates a carbon debt – a burden we leave for the planet to bear. This debt doesn’t sit idle; it accrues in the form of escalating climate impacts, from extreme weather to rising sea levels. The concept of the ‘time value of carbon’ underscores this reality: the longer we delay action, the greater the environmental, social and economic costs become.
Carbon debt and its growing interest
Like a loan with compound interest, the carbon debt compounds over time. Each year, emissions accumulate in the atmosphere, worsening climate impacts. The more we emit, the higher the ‘interest’ paid in the form of intensifying feedback loops, such as shifting weather patterns and melting ice caps. Reducing annual emissions slows the growth of this debt, while carbon dioxide removal (CDR) can actively decrease both the principal and the accumulating interest.
The role of CDR
As a complement to emission reductions, which crucially limit additional debt, CDR works like paying off a high-interest loan early. By removing CO2 already in the atmosphere, CDR reduces the total debt we owe, shortening feedback loops and preventing compounding damages. This makes it an essential tool in any climate strategy, especially as we face the challenge of staying within our limited carbon budget.
As long as we continue to emit more than we remove, temperatures will keep rising, exacerbating the impacts on our environment and economies. CDR can help us achieve net zero sooner, shortening the period during which we face record-breaking temperatures and the associated damages. Even as we reduce emissions, the damage from existing levels of CO2 will continue to grow, which can be discouraging. However, by already incorporating CDR into climate strategies, we can turn a slow, painful decarbonisation process into a swifter, more manageable transition, bending the emissions curve downward faster and reducing the time we spend in a dangerously warming world.
Timing is everything
Delays in action amplify the challenge:
- Early emission cuts are manageable, while delayed reductions require exponentially greater effort.
- Without prompt CDR deployment, the carbon debt (plus interest) grows, amplifying feedback loops and increasing the risks of reaching irreversible tipping points.
The time value of carbon illustrates that every year matters. Immediate action on both emission reductions and removals can reduce the climate debt and avoid a future where the costs are insurmountable. Acting now ensures a livable future while delaying only compounds the price we and future generations must pay.
The time for CDR is NOW – not in 2040 or 2050.
