Europe Reaches Agreement on Carbon Removals Certification

The European Parliament and the Council reached a temporary agreement on the implementation of the first EU-wide voluntary framework for the certification of high-quality carbon removals. This Carbon Removal Certification Framework Regulation development marks a pivotal step towards bolstering innovative carbon removal technologies and carbon farming practices, all of which are instrumental in advancing the EU’s climate, environmental, and zero-pollution objectives.

The impetus behind this framework lies in the European Climate Law, ratified in 2021, which binds the EU to achieve climate neutrality by 2050. This entails balancing greenhouse gas emissions and removals by mid-century. The Carbon Removal Certification Framework Regulation, first proposed by the Commission in November 2022, emerges as a critical instrument in realising the EU’s long-term climate goals under the Paris Agreement and operationalising the European Green Deal. Carbon removals are poised to play a pivotal role in shaping the EU’s future climate targets, including an intermediate target for 2040, as recommended by the Commission in its recent communications.

Drawing upon the Commission’s earlier Communication on Sustainable Carbon Cycles adopted in 2021, this Regulation contributes directly to the 2030 carbon removals target within the Land Use, Land Use Change, and Forestry (LULUCF) sector. It also aligns with nature restoration initiatives outlined in the Nature Restoration Law.

The certification framework sets out rules for certifying various forms of carbon removals, including carbon farming practices, industrial carbon removal technologies, and the storage of carbon in long-lasting products and materials. By ensuring transparency and trustworthiness in carbon removal certification, the framework guards against greenwashing while fostering new business opportunities in the burgeoning carbon removal market.

In addition to its environmental benefits, the regulation promises economic advantages. Certified carbon removals can serve as the foundation for new economic ventures, enabling monetisation through both private schemes and public sector support. Moreover, carbon farming initiatives are expected to generate novel business models for farmers and foresters, while the promotion of long-lasting bio-based building products stimulates innovation in sustainable construction techniques.

Looking ahead, the European Parliament and Council must formally approve the agreement, after which the legislation will be published in the Official Journal of the Union and come into effect. With the Carbon Removal Certification Framework Regulation poised for implementation, the EU moves closer to realising its ambitious climate objectives while simultaneously unlocking new avenues for sustainable economic growth.