Resistance to market interventionism: an analysis of the European industrial carbon management strategy consultation

Establishing a framework for carbon management in the European Union and aligning this with climate policy relies on collaboration between diverse actors and coordination between diverse goals. The European Industrial Carbon Management Strategy, a policy that sets ambitions for carbon capture, carbon utilization, carbon storage and carbon removals, was published in February 2024. The strategy underwent a public consultation during the summer of 2023. The consultation offered valuable insights on how the key stakeholders view the governance challenges. This study analyses the consultation submissions and how the stakeholders perceive carbon management challenges and solutions. All submissions (n = 205) to the call for evidence were synthesized using qualitative system dynamics modelling. The analysis resulted in the identification of two dominant approaches to carbon management, a market-driven and a society-driven approach, debated by the stakeholders. These two approaches have an inherent tension between them. The market-driven approach favours minimal regulation and relies on competition and economic incentives as key drivers for carbon management. In contrast, the society-driven approach advocates for strict regulation and active government intervention to ensure technology aligns with broader climate mitigation goals. The European industrial carbon management faces strong advocacy for a market-driven approach. However, due to the interconnections between decarbonization goals, inherent contradictions, and the collaborative nature of the challenge, a solely market-driven approach may not result in the desired acceleration.Key policy insights Industry perspectives dominated the Industrial Carbon Management Strategy consultation, emphasizing economic effectiveness over other considerations.Focusing solely on economic effectiveness may not lead to the desired acceleration of carbon management.Sustainable carbon management deployment must also integrate environmental and societal considerations.Facilitating the participation of diverse societal actors supports the inclusion of environmental and societal considerations.