The EU Introduces Legislation for Certification and Oversight of Carbon Removal Initiatives
The European Union has passed a new law that will allow businesses engaged in carbon removal and farmers practicing carbon farming to generate income.
Two legislative bodies of the European Union (EU) have reached an agreement on new rules for the voluntary certification, registration, and monitoring of carbon removals within the EU. The deal defines and regulates permanent carbon removals, carbon farming, and carbon storage in products in order to address climate change, according to a statement from the council.
- Permanent carbon removal to storage for a duration of several centuries
- Temporary carbon storage in long-lasting products for a duration of at least 35 years. Example: wood-based construction
- Temporary carbon storage from carbon farming for a duration of at least 5 years. Examples are restored forests and soil, wetlands, and seagrass meadows
- Reduction of carbon emission from farmed soil for a duration of at least 5 years. Examples are wetland management, no tilling, planting cover crops like grasses, legumes, and forbs, and reduced use of fertilizer
Although the regulations will apply to activities taking place in the EU, the statement said the commission “should consider the possibility of allowing geological carbon storage in neighboring third countries, provided they align with EU environmental and safety standards.”
The European Commission will develop detailed certification methods with the assistance of an expert group.
Benefits of Carbon Removal
Each metric ton of CO2 removed through carbon capture activities certified under the new law counts as a contribution towards the EU’s and its member states’ greenhouse gas emission reduction goals under the Paris Agreement, the statement said.
The Paris Agreement requires each participating country to report to the United Nations every five years on its contributions to reducing greenhouse gas emissions.
The new legislation stipulates that certification and audit information must be made public. An electronic EU-wide registry will be established after four years. Fees will be charged for querying the registry, and the income from these fees will be used to fund the registry, according to the statement.
The initiative to certify carbon removal was initially proposed by the commission in November 2022. Carbon removal certificates will underpin “the exchange of verified carbon removal units through voluntary carbon offsetting markets,” the commission said in the proposal.
Certifying carbon removal will potentially create new income opportunities for industries deploying carbon removal and storage technologies and for farmers engaging in innovative carbon farming, the statement said.
Lídia Pereira, a member of the European Parliament representing Portugal and the rapporteur for the legislation, said in a statement on Tuesday, “The agreement reached today on this important piece of legislation will make the EU a global leader in carbon removals. It will foster private investment and develop the voluntary carbon markets while respecting climate integrity and preventing greenwashing.”
