Summary/Abstract
This paper investigates two land-based climate change mitigation strategies for carbon removal: (1) afforestation and (2) bioenergy in combination with carbon capture and storage technology (bioenergy CCS). It examines how a global tax on GHG emissions aimed at ambitious climate change mitigation incentivizes land-based mitigation by penalizing positive and rewarding negative CO2 emissions from the land-use system. The paper finds that afforestation is a cost-efficient strategy for carbon removal at relatively low carbon prices, while bioenergy CCS becomes competitive only at higher prices. A sensitivity analysis shows that land-based mitigation is very sensitive to different levels of GHG taxes. Besides that, the mitigation potential of bioenergy CCS highly depends on the development of future bioenergy yields and the availability of geological carbon storage, while for afforestation projects the length of the crediting period is crucial.