EU Reaches Agreement on Carbon Removal Certification Rules

The EU Council and the European Parliament reached a provisional political agreement on the Carbon Removal Certification Framework (CRCF) on February 20, 2024.

This agreement marks a milestone in the EU’s efforts to integrate carbon removals into its climate agenda and create a robust system for quantifying, monitoring, and verifying carbon removal activities.

Carbon removal technologies and carbon farming practices play a crucial role in the EU’s strategy to combat climate change and achieve its climate neutrality goals. However, ensuring the integrity and transparency of these activities is essential to prevent greenwashing and create trust in voluntary carbon markets.

The CRCF aims to provide a clear regulatory framework for certifying high-quality carbon removals and carbon farming activities. It sets out criteria for quantification, additionality, long-term storage, and sustainability to ensure the credibility and effectiveness of certified carbon removals.

Scope of the Carbon Removal Certification Framework

Under the CRCF, four types of carbon removal activities will be eligible for certification:

1. Permanent carbon removal: This includes the storage of atmospheric or biogenic carbon for several centuries. Technologies such as direct air capture (DAC) and certain nature-based solutions like biochar fall under this category.
2. Temporary carbon storage in long-lasting products: Activities that store carbon in products or materials for at least 35 years, such as wood-based construction materials, fall under this category.
3. Temporary carbon storage from carbon farming: This category includes activities like restoring forests and soil, wetland management, and seagrass meadows, which store carbon for at least five years.
4. Soil emission reduction from carbon farming: Activities that reduce carbon and nitrous oxide emissions from soil management, under specific land management conditions, fall under this category.

It is important to note that renewable energy projects, deforestation prevention initiatives, and hydrocarbon recovery projects are not included in the CRCF.

Certification and Verification Process

The provisional agreement sets the stage for the development of certification methodologies for each type of carbon removal activity. The European Commission, with the support of a Carbon Removal Expert Group, will be responsible for developing these methodologies.

The methodologies will undergo a two-step certification process and will be purely voluntary. Carbon farming activities will need to generate biodiversity co-benefits, such as soil health or land degradation avoidance, to be eligible for certification.

Certified carbon removal activities will be registered in an EU-wide registry, which will provide transparency and ensure the traceability of certified carbon removal units ¹. The registry is expected to be established within four years of the CRCF’s entry into force. This registry may act as a market-based mechanism, allowing entities to buy and sell certified carbon removal units to achieve their carbon reduction goals ¹.

Implications for Businesses and Individuals

The CRCF has significant implications for businesses and individuals seeking to reduce their carbon footprint and contribute to the EU’s climate objectives. Certified carbon removals can serve as the basis for new economic opportunities, as they can be monetized through private schemes and public sector support.

For businesses, the CRCF provides a clear framework for engaging in carbon removal activities and certifying their efforts. It also creates new business models for farmers and foresters engaged in carbon farming practices.

Individuals can also contribute to carbon removal efforts by supporting certified carbon removal initiatives and reducing their own carbon footprint. The CRCF provides transparency and credibility to ensure that individuals can make informed choices when selecting carbon removal projects.