EU Gives Final Approval to Carbon Removals Certification Framework

On Tuesday, the Council of the EU gave final approval to a regulation establishing the first EU-level certification framework for permanent carbon removals, carbon farming, and carbon storage in products. This voluntary framework will facilitate and encourage high-quality carbon removal and soil emission reduction activities in the EU, as a complement to sustained emission reductions.

The regulation will be the first step in introducing a comprehensive certification framework for carbon removals and soil emission reductions into EU legislation. It will help the EU to achieve its goal of climate neutrality by 2050.

The regulation covers the following activities across the EU:

• Permanent carbon removals that capture and store atmospheric or biogenic carbon for several centuries (e.g., bioenergy with carbon capture and storage, direct air capture with storage)
• Carbon storage activities that capture and store carbon in long-lasting products for at least 35 years (such as wood-based construction products)
• Carbon farming activities that enhance carbon sequestration and storage in forests and soils, or that reduce greenhouse gas emissions from soils, carried out over a period of at least five years (e.g., reforestation, restoring peatlands or wetlands, improved fertilizer use)

Four years after the entry into force of the regulation, the Commission will establish an electronic EU-wide registry to ensure transparency and full traceability of the so-called certified units, which will be issued to reflect carbon net benefit generated through certified carbon removal and soil emission reduction activities.

The regulation will now be published in the EU’s Official Journal and enter into force 20 days after its publication. It will then become directly applicable in all EU member states.

Background

On November 30th, 2022, in an important first step towards the further integration of carbon removal schemes into EU climate policy, the Commission proposed a regulation creating a voluntary EU-wide framework to certify high-quality carbon removals.

The Council adopted its negotiating mandate at Coreper level on November 17th, 2023, while the European Parliament reached its position on November 21st, 2023. After three rounds of negotiations, the EU co-legislators reached an agreement on the final shape of the regulation on February 20th, 2024.