The Commission welcomes the provisional agreement between the European Parliament and the Council on the first EU-wide voluntary framework for the certification of high-quality carbon removals. This certification framework will boost innovative carbon removal technologies and carbon farming which contribute to the EU’s climate, environmental and zero-pollution goals. This new framework will help the EU to reach climate neutrality by certifying carbon removals and carbon farming to ensure that they are transparent and trusted, preventing greenwashing and creating new business opportunities. Today’s agreement sets out certification rules for:
* Carbon farming, such as restoring forests and soils and avoiding soil emissions, rewetting of peatlands, more efficient use of fertilizers, and other innovative farming practices;
* Industrial carbon removals, such as bioenergy with carbon capture and storage, or direct air carbon capture and storage;
* Binding carbon in long-lasting products and materials, such as wood-based construction materials or biochar.
The provisionally agreed Regulation willimprove the EU’s capacity to quantify, monitor and verifythe authenticity of all these forms of carbon removals. In particular, it sets outrules to recognise certification schemesthat demonstrate compliance with the EU framework, and a specific set of criteria to ensure the high-quality of carbon removals and the transparency and credibility of the certification process.
The agreed criteria will ensure that carbon removals are: correctlyquantified; store carbon for an agreedlong-term period(a minimum of 35 years for carbon stored in products);go beyond existing practicesand don’t just reward the status quo;and contribute tobroader sustainability goals, for instance by providing positive impacts on biodiversity. AnEU registry will be establishedto create a-high level of transparency about certified carbon removals. This will be put in place within 4 years. In the meantime, the registries of existing certification schemes can be used. The Regulation provides a prioritisation of the certification methodologies that should be developed. On this basis, the Commission, supported by aCarbon Removal Expert Group [https://climate.ec.europa.eu/eu-action/sustainable-carbon-cycles/expert-group-carbon-removals_en], will continue its work to develop credible and tailored certification methodologies for the different types of carbon removal activities.
Certified carbon removals can be the basis ofnew economic opportunities, and can be monetised through private schemes and public sector support, as well as generating commercial advantages with consumers looking to reward environmentally-friendly practices. Carbon farming willcreate new business models for farmers and forestersand is expected to yield significant benefits for biodiversity. The agreed regulation also encourages the use of long-lasting bio-based building products to keep carbon bound over several decades or longer, stimulating new sustainable building techniques.
Regardingfinancial support for carbon removing technologies, the Regulation unlocks innovative private and public financing, including impact finance or result-based public support, because carbon removers and carbon farmers can be rewarded based on the certified removals and emissions reductions. It will also support theNew European Bauhaus [https://new-european-bauhaus.europa.eu/index_en]by recognising the carbon storage capacity of bio-based and energy-efficient building materials. The Commission will continue funding carbon removals through various programmes, such as theInnovation Fund [https://climate.ec.europa.eu/eu-action/funding-climate-action/innovation-fund_en], Common Agricultural Policy, Regional Development Fund,LIFE programme [https://cinea.ec.europa.eu/programmes/life_en]andHorizon Europe programme [https://research-and-innovation.ec.europa.eu/funding/funding-opportunities/funding-programmes-and-open-calls/horizon-europe_en](including the Mission ‘A Soil Deal for Europe [https://research-and-innovation.ec.europa.eu/funding/funding-opportunities/funding-programmes-and-open-calls/horizon-europe/eu-missions-horizon-europe/soil-deal-europe_en]‘).
NEXT STEPS
The European Parliament and Council now need to formally approve the agreement. Once this process is completed, the new legislation will be published in the Official Journal of the Union and enter into force.
BACKGROUND
TheEuropean Climate Law [https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2021.243.01.0001.01.ENG&toc=OJ%3AL%3A2021%3A243%3ATOC], signed in 2021, legally binds the EU to become climate neutral by 2050. This means achieving a balance between greenhouse gas emissions and removals by 2050. The Carbon Removal Certification Framework Regulation, initially proposed by the Commission in November 2022, is therefore crucial to achieve the EU’s long-term climate objective under the Paris Agreement and make the European Green Deal a reality. Carbon removals will be a key enabler for afuture intermediate climate target for 2040,as recommended by the Commission initsCommunication [https://ec.europa.eu/commission/presscorner/detail/en/IP_24_588]and theIndustrial Carbon Management Strategy [https://energy.ec.europa.eu/topics/oil-gas-and-coal/carbon-capture-storage-and-utilisation_en]on 6 February.
Building upon the Commission’s Communication on Sustainable Carbon Cycles adopted in 2021, this Regulation contributes to the 2030 carbon removals target in theLand Use, Land Use Change and Forestry (LULUCF) sector [https://climate.ec.europa.eu/eu-action/forests-and-agriculture/land-use-and-forestry-regulation-2021-2030_en]. It also supports the nature restoration activities in line with theNature Restoration Law [https://ec.europa.eu/commission/presscorner/detail/en/ip_23_5662]and circular economy practices from theCircular Economy Action Plan [https://environment.ec.europa.eu/strategy/circular-economy-action-plan_en].
It will also help companies in reporting their climate footprint in accordance with theCorporate Social Responsibility Directive and the related Sustainability Reporting Standards, and it will provide more transparency onclimate neutrality claims by public and private organisations.
MORE INFORMATION
Commission’s proposal [https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52022PC0672]
Carbon Removal Certification [https://climate.ec.europa.eu/eu-action/sustainable-carbon-cycles/carbon-removal-certification_en]
The European Green Deal [https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en]
QUOTE(S)
[https://ec.europa.eu/commission/presscorner/api/image/content/sefcovic.jpg]Maroš Šefčovič, Executive Vice-President for European Green DealOur efforts to reduce greenhouse gas emissions will increasingly depend on technology and innovation in the future, and on making the best use of natural carbon sinks. Developing the appropriate certification for carbon removal technologies and carbon farming is key to incentivising and rewarding new practices. Today’s agreement sets us on a path to establishing high quality carbon removal activities across Europe. – Maroš Šefčovič, Executive Vice-President for European Green Deal, Interinstitutional Relations and Foresight
[https://ec.europa.eu/commission/presscorner/api/image/content/wopke-hoekstra.jpg]Wopke Hoekstra, Commissioner for Climate ActionCarbon removals and carbon farming will be an important part of our efforts to reach climate neutrality by 2050. With this new voluntary European certification framework for carbon removals and carbon farming, we will be unlocking new economic opportunities for farmers, foresters, builders and innovators. It’s essential that we work with all these stakeholders for a more sustainable future where innovation meets environmental responsibility. Together we can create an innovative business environment to invest in and deploy high-quality carbon removals. – Wopke Hoekstra, Commissioner for Climate Action
SOURCE
European Commission, press release, 2024-02-20. [https://ec.europa.eu/commission/presscorner/detail/en/ip_24_885]
SUPPLIER
European Commission [https://renewable-carbon.eu/news/supplier/european-commission]
European Council [https://renewable-carbon.eu/news/supplier/european-council]
European Innovation Fund [https://renewable-carbon.eu/news/supplier/european-innovation-fund]
European Parliament [https://renewable-carbon.eu/news/supplier/european-parliament]
European Regional Development Fund [https://renewable-carbon.eu/news/supplier/european-regional-development-fund]
Horizon 2020 [https://renewable-carbon.eu/news/supplier/horizon-2020]
New European Bauhaus (EU-network) [https://renewable-carbon.eu/news/supplier/new-european-bauhaus-eu-network]
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