Government should aim to have polluting sectors pay for removals they need to reach carbon targets. Sectors that do not require removals to achieve net zero should not be obligated to pay for them. However, in some instances there may be adverse consequences that require intervention. To account for this, by 2024, government must:

• undertake and publish detailed analysis on the range of adverse distributional consequences that could occur from the proposed policy approach
• set out which sectors it is open to providing subsidy for removals to
• consider the risks of offshoring emitting activities to other countries, and how these can be mitigated.