Toward a New Carbon Economy

Why It Matters

By treating carbon as a managed resource rather than a waste product, the new carbon economy can reconcile climate goals with material security, unlocking scalable decarbonization pathways for hard‑to‑abate sectors. Failure to coordinate these activities risks delayed infrastructure, higher costs, and lock‑in to suboptimal technologies.

Key Takeaways

• Carbon remains essential for plastics, fertilizers, and pharmaceuticals
• New carbon economy integrates capture, removal, utilization, transport, and storage
• Coordination gaps delay infrastructure and increase risk of suboptimal tech
• DOE estimates 30,000‑96,000 miles of CO2 pipelines needed by 2050
• Broad stakeholder coalition needed to define governance and safety standards

Pulse Analysis

The global push toward net‑zero has often been framed as a race to eliminate carbon entirely, but that narrative overlooks carbon’s role as the chemical backbone of modern industry. Plastics, synthetic fibers, fertilizers and countless pharmaceuticals rely on carbon‑based feedstocks, meaning demand for these materials will persist even as power generation shifts to renewables. Recognizing carbon as a strategic input reframes the climate challenge: the goal becomes not just reducing emissions, but managing carbon flows so that essential goods remain affordable, secure, and environmentally responsible.

A "new carbon economy" stitches together five core activities—point‑source carbon capture (PSC) or CCS, carbon‑dioxide removal (CDR) such as direct air capture, carbon utilization (CCU) for fuels and materials, carbon storage in geological formations, and carbon transportation via pipelines, ships or trucks. The U.S. Department of Energy estimates that 30,000‑96,000 miles of CO₂ pipelines will be required by 2050, a stark contrast to the roughly 5,300 miles currently operating. Without coordinated investment, these infrastructure gaps could stall decarbonization in hard‑to‑abate sectors like cement, aviation and chemicals, and force reliance on less efficient, higher‑emission solutions.

Policy makers, investors and industry leaders must therefore treat carbon as a managed commodity, establishing shared standards, safety protocols, and market mechanisms that align capture, removal and utilization. RMI’s convening of technical, commercial and governmental experts aims to build a governance framework that balances climate stability with material security. A collaborative approach can accelerate pipeline construction, scale up DAC facilities, and create reliable feedstock streams for synthetic fuels and durable building materials, turning the new carbon economy from a concept into a cornerstone of a resilient, net‑negative future.