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From · opinion parliamentary committee · 2023-09-13 AGRI-AD-746718 on the proposal for a regulation of the European Parliament and of the Council establishing a Union certification framework for carbon removals

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To · agreement provisional · 2024-03-08 ENVI-AG-759876 Proposal for a regulation of the European Parliament and of the Council establishing a Union certification framework for carbon removals

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~~SHORT JUSTIFICATION~~

8.3.2024

Carbon farming activities adopted at larger scale via appropriate land management practices represent great potential in contributing to and reaching EU climate objectives. Through carbon farming actions, farmers, forest owners and managers should be able to bring added value and combined effects not only to the environment, but also to ecosystem services and biodiversity while at the same time maintaining EU food security. For this, development of robust, voluntary, credible and accessible schemes at EU level that legally recognize farmers for their actions is needed, in particular as many farmers today are attracted to participate in multiple private schemes with different levels of credibility.

PROVISIONAL AGREEMENT RESULTING FROM INTERINSTITUTIONAL NEGOTIATIONS

To this end, the draft proposes the establishment of a consistent, attractive and credible voluntary framework for carbon farming certification that should ensure farmers interest, provide guarantees of our key agriculture and environmental policy principles, limit additional administrative burden and cost. It should also ensure transition from existing certification schemes into future EU framework in case they meet the required quality standards.

Subject: Proposal for a regulation of the European Parliament and of the Council establishing a Union certification framework for carbon removals

This is why this report proposes to decouple the activities of carbon removals and carbon farming. This is due to the specific character and legal base of farming and to the different permanence of the storage. By distinguishing these two aspects, carbon farming solutions will be tailored more to the agriculture and forestry reality.

(COM(2022)0672 – C9 0399/2022 – 2022/0394(COD))

In farming, it is difficult to speak exclusively about carbon removals without addressing GHG emissions reduction, especially for methane and nitrous oxide. Focusing exclusively on carbon removals would significantly impact farmers interest in reducing overall farm GHG emissions. Considering non-CO2 emissions reductions as co-benefits only does not provide enough to encouragement to farmers to make a greater effort on this matter. As a result, it would impair our ambitions for agriculture sector in its totality to transform faster towards environmental sustainability.

The interinstitutional negotiations on the aforementioned proposal for a regulation have led to a compromise. In accordance with Rule 74(4) of the Rules of Procedure, the provisional agreement, reproduced below, is submitted as a whole to the Committee on the Environment, Public Health and Food Safety for decision by way of a single vote.

The permanence of the carbon storage in farming needs to be objectively addressed. To assess the risk of reversibility, the Commission should establish for each carbon farming activity approximation of the storage permanence and based on this, establish discount rates for each activity. This would allow the farmers to enter their carbon farming activity with the upfront knowledge on permanence and the risks associated with their decisions and would also take away the burden and cost of prolonged monitoring and verification.

2022/0394 (COD)

For the certification methodology, the Commission should learn from the front-runners in order not to reinvent the wheel while at the same time to set clear and legislatively sound framework. Experts and farmers involved in the existing carbon farming schemes currently in place should also be involved in drafting the methodologies to ensure the exchange of best practices and adoption rates.

~~We should also set a price standard for carbon offsets and audits. If there is no guidance on price standards and cost of audits there is a risk of poor uptake by farmers.~~

To significantly reduce administrative and transaction costs for carbon farming schemes adoption the report proposes to make use of existing EU structures for administration. To this end, it is a better fit for Member States’ paying agencies to take over the role of national accreditation authority as well as to use the existing Land Parcel Identification System (LPIS) database for registration of carbon farming commitments and highest level of transparency.

Development of voluntary, solid, credible and legally sound EU carbon farming certification framework would logically pave a way towards recognition of both emissions reductions and carbon removals in existing EU ETS and LULUCF frameworks. This would further increase motivation of all players in the value chain. Furthermore, in order not to limit the marketability of carbon removals and reductions farmers should not be limited only to Scope 3 emissions reductions.

~~AMENDMENT~~

~~The Committee on Agriculture and Rural Development calls on the Committee on the Environment, Public Health and Food Safety, as the committee responsible, to take the following into account:~~

~~Amendment 1~~

~~Proposal for a regulation~~

~~Title 1~~

~~Text proposed by the Commission~~

~~Amendment~~

~~Proposal for a~~

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

~~REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL~~

establishing a Union certification framework for permanent carbon removals, carbon farming and carbon storage in products

~~establishing a Union certification framework for carbon removals~~

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

~~establishing a Union certification framework for carbon removals and carbon farming~~

~~Amendment 2~~

~~Proposal for a regulation~~

~~Citation 1~~

~~Text proposed by the Commission~~

~~Amendment~~

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 192(1) thereof,

~~Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 43(2) and 192(1) thereof,~~

Having regard to the proposal from the European Commission,

~~Amendment 3~~

After transmission of the draft legislative act to the national Parliaments,

~~Proposal for a regulation~~

Having regard to the opinion of the European Economic and Social Committee,

~~Recital 3~~

Having regard to the opinion of the Committee of the Regions,

~~Text proposed by the Commission~~

Acting in accordance with the ordinary legislative procedure,

~~Amendment~~

Whereas:

(3) The aim of this Regulation is to develop a voluntary Union certification framework for carbon removals, with the view to incentivise the uptake of high-quality carbon removals, in full respect of the biodiversity and the zero-pollution objectives. It is a tool to support the achievement of the Union objectives under the Paris Agreement, notably the goal of collective climate neutrality by 2050 laid down in Regulation (EU) 2021/1119 of the European Parliament and of the Council24 . The Union also committed to generate negative emissions after 2050. An important instrument to enhance carbon removals in terrestrial ecosystems is Regulation (EU) 2018/841 of the European Parliament and of the Council25 , which is currently under review. The objective of the review is to set out a Union net removals target of 310 Mt CO2 eq by 2030, and to allocate respective targets to each Member State.

(1) Under the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (UNFCCC) ('the Paris Agreement'), approved by Council Decision (EU) 2016/18411the international community has agreed to hold the increase in the global average temperature well below 2° C above preindustrial levels and to pursue efforts to limit the temperature increase to 1.5° C above pre-industrial levels. The Conference of the Parties to the UNFCCC also adopted the Glasgow Climate Pact, that acknowledges that the impacts of climate change will be much lower at a temperature increase of 1,5 ºC, compared with 2 ºC and resolves to pursue efforts to limit the temperature increase to 1.5 °C. The Union and its Member States are Parties to the Paris Agreement and are strongly committed to its implementation by reduction of greenhouse gas emissions and increase in carbon removals.

(3) The aim of this Regulation is to develop a voluntary Union certification framework for carbon removals and carbon farming, with the view to incentivise the uptake of high-quality carbon removals and, in the case of carbon farming, GHG emissions reduction, in full respect of the biodiversity and the zero-pollution objectives. It is a tool to support the achievement of the Union objectives under the Paris Agreement, notably the goal of collective climate neutrality by 2050 laid down in Regulation (EU) 2021/1119 of the European Parliament and of the Council24 . The Union also committed to generate negative emissions after 2050. In accordance with Regulation (EU) 2021/1119, priority should be given to reductions in fossil emissions, which will have to be complemented by increased carbon removals in order to achieve climate neutrality. Regulation (EU) 2021/119 recognises that carbon sinks include natural and technological solutions. An important instrument to enhance carbon removals in terrestrial ecosystems is Regulation (EU) 2018/841 of the European Parliament and of the Council, as amended by Regulation (EU) 2023/83925. The objective of the review is to set out a Union net removals target of 310 Mt CO2 eq by 2030, and to allocate respective targets to each Member State. The scope of carbon farming land-based activities under this Regulation should be consistent with the scope of Regulation (EU) 2018/841, as amended by Regulation (EU) 2023/839, and of the reporting under that Regulation in the national greenhouse gas inventories and also with reporting under Part 3 of Annex V to Regulation (EU) 2018/1999. In this regard, the planned revision of the Regulation (EU) 2023/839 should also look how to incorporate the carbon removals achieved through carbon farming in the EU and national targets. Furthermore, in the case of GHG emissions reduction, the Commission may consider how to include those in the Emissions trading system (ETS). Until the entry into force of EU-wide rules on green claims, the use of certified units is limited to climate claims at the level of companies. This is further limited in a way that it neither impedes nor reduces the achievement of the company’s GHG emission reduction targets.

(2) At a global scale, the reports by the Intergovernmental Panel on Climate Change (IPCC) point towards a decreasing likelihood of limiting global warming to 1.5 °C unless rapid and deep cuts in global GHG emissions occur throughout the remainder of this decade and in the coming decades. The IPCC reports also clearly state that the deployment of carbon dioxide (CO2) removal to counterbalance hard-to-abate residual emissions is unavoidable if net-zero ▌ CO2▌ or GHG emissions are to be achieved ▌ . This will require the large-scale deployment of sustainable activities for capturing CO2 from the atmosphere and durably storing it in geological ▌ , terrestrial or marine reservoirs, including oceans, or in long-lasting products. Today and with current policies, the Union is not on track to deliver the required carbon removals: carbon removals in terrestrial ecosystems have been decreasing in recent years, and no significant industrial carbon removals are currently taking place in the Union.

~~_________________~~

(3) The aim of this Regulation is to develop a voluntary Union certification framework for permanent carbon removals, carbon farming and carbon storage in products , with a view to facilitating and encouraging the uptake of high-quality carbon removals and soil emission reductions, in full respect of the biodiversity and the zero-pollution objectives, as a complement to sustained emission reductions across all sectors (‘the Union certification framework’). It is thereby a tool to support the achievement of the Union objectives under the Paris Agreement, in particular the collective achievement of climate neutrality objective by 2050 laid down in Regulation (EU) 2021/1119 of the European Parliament and of the Council (“the European Climate Law”). All carbon removals and soil emission reductions certified under this Framework should contribute to the achievement of the Union’s Nationally Determined Contribution (NDC) and its climate objectives. Therefore, in order to avoid double counting, those carbon removals and soil emission reductions should not contribute to third party NDCs or international compliance schemes. The Union also committed to generate negative emissions after 2050. An important instrument to enhance carbon removals in terrestrial ecosystems is Regulation (EU) 2018/841 of the European Parliament and of the Council (“LULUCF Regulation”) which sets out a Union net removals target of 310 million tonnes CO2 equivalent by 2030 and allocates respective targets to each Member State.

~~_________________~~

(3a) In its Communication “Towards an ambitious Industrial Carbon Management for the EU”, the Commission foresees to assess overall objectives for carbon removals needs in line with the EU’s 2040 climate ambition and the goal to reach climate neutrality by 2050 and negative emissions thereafter; develop policy options and support mechanisms for industrial carbon removals, including if and how to account for them in the EU ETS; and in parallel, boost EU research, innovation and early-of-a-kind demonstration for novel industrial technologies to remove CO2 under Horizon Europe and the Innovation Fund. In addition, it is appropriate for the Commission to assess options for Union targets for carbon removals, including clearly distinguishing a separate target for permanent carbon removals.

24 Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).

(3b) A harmonised Union certification framework is expected to enhance the environmental integrity and transparency of permanent carbon removals, carbon farming and carbon storage in products and promote trust in their certification while reducing the associated administrative costs. The voluntary nature of the Union certification framework means that existing and new public and private certification schemes can apply for recognition by the Commission under this Regulation but are not obliged to do so in order to operate in the Union.

(3b) The European Climate Law also sets out a binding Union climate target of a domestic reduction of net GHG emissions by at least 55% compared to 1990 levels by 2030. In order to ensure that sufficient mitigation efforts are deployed up to 2030, the contribution of net removals to the Union 2030 climate target is limited to 225 million tonnes CO2 equivalent.

25 Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU (OJ L 156, 19.6.2018, p. 1).

(4) The Union certification framework will support the development of permanent carbon removal, carbon farming and carbon storage in products in the Union that result in an unambiguous positive climate impact, while avoiding greenwashing. In the case of carbon farming, the Union certification framework should also promote the uptake of ▌ activities that generate co-benefits for biodiversity, therefore contributing to achieving the nature restoration targets set out in Union law ▌ .

▌

~~Amendment 4~~

(4b) It is appropriate that the Union certification framework also encourage research and innovation, whilst emphasising the role of relevant research programmes, with the aim of facilitating access to the market for new technologies. In this regard, the Commission and the Member States are encouraged to engage in cross-disciplinary cooperation, involving national and regional research institutions, scientists, farmers and small and medium-sized enterprises.

~~Proposal for a regulation~~

▌

~~Recital 4~~

(5) In order to support operators willing to make additional efforts to increase carbon removals or reducing soil emissions in a sustainable way, the Union certification framework should take into account the different types of activities, their specificities and related environmental impacts. Therefore, this Regulation should provide clear definitions of permanent carbon removals, carbon farming and carbon storage in products, and other elements of the Union certification framework. Its scope should include activities that enhance carbon storage in geological, terrestrial or marine reservoirs, including oceans, and in long-lasting products. Activities should include one or more practices or processes that remove carbon from the atmosphere. Certain activities, such as those based on the use of biochar, can result in different types of net carbon removal benefits and duration of carbon storage, depending on the specific conditions under which the activities take place. Accordingly, appropriate monitoring and liability rules should be set out in the relevant certification methodologies.

~~Text proposed by the Commission~~

(5a) In the case of carbon farming, relevant activities can include practices and processes in the marine and coastal ecosystems. They can also include practices or processes that reduce emissions of GHG from soils. These include activities that result in the reduction of carbon release to the atmosphere from a soil carbon pool, as set out in points (e) and (f) in Section B of Annex I to the LULUCF Regulation, as is the case for instance for activities that improve soil management or restore degraded peatlands. In addition, reductions of emissions from agricultural soils, corresponding to the emissions from the IPCC source category of agricultural soils, as reported in Table 3.D of the Common Reporting Format tables under the UNFCCC reporting guidelines on annual inventories for Parties included in Annex I to that Convention, should also be included in the quantification of carbon farming activities as long as these emission reductions result from an activity that overall reduces the emission of carbon from soil carbon pools or increases carbon removals in biogenic carbon pools. On the contrary, activities such as avoided deforestation, or renewable energy projects, which do not result in either carbon removals or soil emission reductions should not be included in the scope of the Union certification framework.

~~Amendment~~

▌

(4) The Union certification framework will support the development of carbon removal activities in the Union that result in an unambiguous net carbon removal benefit, while avoiding greenwashing. In the case of carbon farming, such certification framework should also encourage the uptake of carbon removal activities that generate co-benefits for biodiversity, therefore achieving the nature restoration targets set out in Union law on nature restoration. The Union certification framework will be instrumental in meeting the Union climate change mitigation objectives set in international agreements and in the Union legislation.

▌

(4) The Union certification framework will support the development of carbon removal activities in the Union that result in an unambiguous net carbon removal benefit, while avoiding greenwashing. In the case of carbon farming, such certification framework should also encourage achieving GHG emissions reduction together with carbon removals, as these two are intrinsically linked in their natural cycles. GHG emissions reduction will require their own methodology for accounting and certification, alongside carbon removals. The Union certification framework will be instrumental in meeting the Union climate change mitigation objectives set in international agreements and in the Union legislation. The Union voluntary certification framework builds on and contributes to the ongoing public and private work regarding the certification of carbon removals.

(6) This Regulation should set out the requirements under which carbon removals and soil emission reductions are eligible for certification under the Union certification framework. To this end, carbon removals and soil emission reductions should be quantified in an accurate and robust way; and they should be generated only by ▌ activities that respectively generate a net carbon removal benefit or a net soil emission reduction benefit, are additional, and aim to ensure long-term storage of carbon. They should do no significant harm to the environment and should be able to result in a co-benefit on sustainability objectives. ▌ Carbon removals and soil emission reductions should be subject to independent third-party auditing in order to ensure the credibility and reliability of the certification process. Furthermore, this regulation should set out rules on the issuance and use of certified units. Mandatory Union carbon pricing rules established through Directive 2003/87/EC of the European Parliament and of the Council are in place which regulate the treatment of emissions from activities covered by that Directive. This Regulation should be without prejudice to Directive 2003/87/EC, except in relation to the certification of capture and storage of CO2 emissions from biofuels, bioliquids and biomass fuels which meet the Union sustainability and GHG emissions saving criteria established under Directive (EU) 2018/2001 of the European Parliament and of the Council, with any necessary adjustments for application under Directive 2003/87/EC, as set out in the implementing acts referred to in Article 14 of Directive 2003/87/EC, in accordance with Annex IV of Directive 2003/87/EC.

~~Amendment 5~~

(7) An activity should result in a net carbon removal benefit or a net soil emission reduction benefit showing that it delivers a positive climate impact. The net carbon removal benefit or the net soil emission reduction benefit should be quantified following two steps.

~~Proposal for a regulation~~

▌

~~Recital 5~~

(7a) In the first step for quantifying the net carbon removal benefit or the net soil emission reduction benefit, operators should quantify the amount of additional carbon removals or soil emission reductions that an activity has generated in comparison to a baseline. In the case of carbon farming, the quantified carbon removals or soil emission reductions should ensure that any carbon release occurring in a carbon pool is taken into account in an appropriate way in computing the net benefit of the activity. A standardised baseline should be representative of the standard performance of comparable practices and processes in similar social, economic, environmental and technological circumstances and take into account the geographical context, including local pedo-climatic and regulatory conditions. Such approach to establishing the baseline should be preferred because it ensures objectivity, minimises compliance and other administrative costs, and positively recognises the action of first movers who have already engaged in eligible activities. In the context of carbon farming, only practices and processes that go beyond the common practice should be certified; therefore, a specific carbon farming activity should not be rewarded if it is already widely adopted within a region with similar pedo-climatic and regulatory conditions. The standardised baseline should ensure that, once an activity becomes the common practice, such activity cannot be certified any longer. To this end, the Commission should review at least every five years and update, as appropriate, the standardised baselines in light of evolving regulatory circumstances and of the latest available scientific evidence to reflect the social, economic, environmental, regulatory and technological developments and to encourage increased ambition over time in line with the Paris Agreement. In addition, the use of available digital technologies, including electronic databases and geographic information systems, remote sensing, novel on-site carbon quantification systems, artificial intelligence and machine learning, and of electronic maps, should be promoted to decrease the costs of establishing baselines and ensure the robustness of the monitoring of the activities. However, where it is not possible to set such a standardised baseline, an activity-specific baseline based on the operator’s individual performance should be used. The activity-specific baselines should be updated by the operator at the beginning of each activity period, unless otherwise stated in the applicable certification methodologies.

~~Text proposed by the Commission~~

(8) The second step for quantifying the net ▌ benefit should consist of subtracting any associated GHG emissions occurring during the lifecycle of the activity and related to the implementation of the ▌ activity. Relevant GHG emissions that should be taken into consideration include direct emissions, such as those resulting from the use of fertilisers, chemicals, fuel or energy, other material inputs and transportation, or indirect emissions, such as those resulting from land use change with consequent risks for food security due to displacement of agricultural production, or displacement effects due to competing demand for energy or waste heat. Any increase in GHG emissions attributable to the implementation of the activity should be subtracted from the net carbon removal benefit or from the net soil emission reduction benefit in an appropriate way, in accordance with the technical rules set out in the relevant certification methodology. A reduction in GHG emissions resulting from the implementation of the activity, other than the reduction of emissions from agricultural soils, should not be taken into account to quantify the net carbon removal benefit or the net soil emission reduction benefit. Instead, it should be considered as a co-benefit towards the sustainability objective of climate change mitigation and be reported on the certificates of compliance. Such decreases in GHG emissions, like the other sustainability co-benefits, can increase the value of the certified carbon removals or soil emissions reductions.

~~Amendment~~

(8a) Operators carrying out activities covered under this Regulation should include any legal or natural person or public entity operating or controlling an activity, or to whom decisive economic power over the technical functioning of the activity has been delegated. In the case of carbon farming, the definition of operators should apply to farmer as defined in Article 3(1) of Regulation (EU) 2021/2115 or any other manager of an activity in land or coastal environment, or a forest owner or manager as defined by national law, or a competent public entity. Group of operators should cover any legal entity that represents at least two operators, including cooperatives or producer organisations or producer groups, ensuring that those operators comply with this Regulation.

(5) In order to support operators willing to make additional efforts to increase carbon removals in a sustainable way, the Union certification framework should take into account the different types of carbon removal activities, their specificities and related environmental impacts. Therefore, this Regulation should provide clear definitions of carbon removal, carbon removal activities, and other elements of the Union certification framework.

(9) An activity delivers a net carbon removal benefit when the carbon removals above the baseline outweigh any increase in GHG emissions associated to the implementation of that activity. For instance, in the case of ▌ permanent carbon removals that inject carbon underground, the amount of permanently stored carbon should outweigh the energy related GHG emissions from the industrial process. Similarly, in the case of soil emission reductions from carbon farming, the net soil emission reduction benefit is positive if the soil emission reductions compared to the baselines outweigh any increase in GHG associated to the implementation of the activity. Carbon farming activities generally improve soil quality, which has a positive impact on soil resilience and productivity, but in some circumstances, it might also generate a decrease in food production and therefore lead to a carbon leakage effect from indirect land-use change, and the related indirect emissions should be taken into account. Any carbon captured and stored by afforestation or soil emission reduction by a peatland re-wetting ▌ should outweigh the emissions from the machinery used to carry out the ▌ activity or the indirect land use change emissions that can be caused by carbon leakage.

(5) In order to support operators willing to make additional efforts to increase carbon removals in a sustainable way, the Union certification framework should take into account the different types of carbon removal and carbon farming activities, their specificities and related environmental impacts. Therefore, this Regulation should provide clear definitions of carbon removal, carbon farming, carbon farming storage, GHG emissions reductions, carbon removal and carbon farming activities, and other elements of the Union certification framework and specify broad range of financing possibilities, either private or public.

(10) Carbon removals and soil emission reductions, as well as the corresponding direct and indirect GHG emissions associated, should be quantified in a relevant, conservative, accurate, complete, consistent, transparent, and comparable manner. Uncertainties in the quantification should be duly reported and accounted in a conservative manner in order to limit the risk of overestimating the quantity of CO2 removed from the atmosphere or of underestimating the quantity of direct and indirect GHG emissions generated by an activity. Temporary carbon removals and soil emission reductions generated by carbon farming should be quantified with a high level of accuracy to assure the highest quality and minimise uncertainties; and they should be based, where feasible, on the use of Tier 3 methodologies in accordance which the 2006 IPCC guidelines for National Greenhouse Gas Inventories and any further refinement. Moreover, in order to incentivise synergies between Union climate and biodiversity objectives, enhanced monitoring of land needs to be required, thereby helping to protect and enhance the resilience of nature-based carbon removals throughout the Union. The ▌ monitoring ▌ of emissions and removals need to closely reflect those approaches ▌ and should be based on an appropriate combination of on-site measurements with remote sensing or modelling according to rules set out in the appropriate certification methodology. It should make the best use of advanced technologies available under Union programmes, such as Copernicus, making full use of already existing tools, and ensure consistency with the national GHG inventories.

~~Amendment 6~~

(10a) In the choice of methods relevant to the calculations of GHG emissions and removals, a conservative approach should be applied in line with the IPCC guidelines for national GHG inventory estimates, where applicable. This means that the methods used should result in conservative emission or removal estimates so that emissions are not underestimated and removals are not overestimated.

~~Proposal for a regulation~~

(11) ▌The Union certification framework should incentivise activities that are additional, meaning that they go beyond the standard practice ▌ . Therefore, those activities should go beyond statutory requirements at the level of an individual operator, that is, operators should carry out activities that are not already imposed upon them by the applicable law. Moreover, ▌ activities should become financially viable due to the incentive effect provided by the certification. Such effect is present when the incentive created by the potential revenues, resulting from the certification, changes the behaviour of operators in such a way that they engage in the additional ▌ activity to achieve additional carbon removals or soil emission reductions.

~~Recital 5 a (new)~~

(12) A standardised baseline should reflect the statutory and market conditions in which the ▌ activity takes place. If an activity is imposed upon operators by the applicable law, or it does not need any incentives to take place, its performance will be reflected in the baseline. For this reason, an activity that generates carbon removals or soil emission reductions in excess of such a baseline should be presumed to be additional. Hence, the use of a standardised baseline should simplify the demonstration of additionality for operators. Therefore, it should reduce the administrative burden of the certification process, which is particularly important in the case of small-scale operators.

~~Text proposed by the Commission~~

(13) Atmospheric and biogenic carbon that is captured and stored through permanent carbon removals, carbon farming or carbon storage in products risks being released back into the atmosphere ( ▌ reversal) due to natural or anthropogenic causes. Therefore, operators should take all relevant preventive measures to mitigate those risks and duly monitor that carbon continues to be stored over the monitoring period laid down for the relevant ▌ activity. The validity of the certified unit should depend on the expected duration of the storage and the different risks of reversal associated with the given ▌ activity. Permanent carbon removals provide enough certainties on the very long-term duration of several centuries. Products with permanently chemically bound carbon have a very low or no risk of carbon release. Carbon farming or carbon storage in products are more exposed to the risk of voluntary or involuntary release of carbon into the atmosphere. To account for this risk, the validity of the ▌ carbon farming sequestration unit and the carbon storage in products unit should be subject to an expiry date matching with the end of the relevant monitoring period, which should cover at least 35 years for carbon storage in products. Thereafter, the carbon captured and stored should be assumed to be released into the atmosphere, unless the operator or group of operators commits to prolonging the monitoring period. The certification methodologies should promote the prolongation of the monitoring period of the relevant carbon farming activities, aiming at ensuring the long-term storage in soils or biomass of the CO2 captured and to provide financial incentives to carbon farming operators over the long term. To this end, it is appropriate that the certification methodologies incentivise operators to prolong the monitoring period several times, with the aim of storing captured carbon for at least several decades.

~~Amendment~~

(14) In addition to measures taken to minimise the risk of carbon release into the atmosphere during the monitoring period, appropriate liability mechanisms should be introduced to address cases of reversal. The certification methodologies should also include rules on the risk of failure of the liability mechanisms. Such mechanisms could include collective buffers and up-front insurance mechanisms. In order to avoid double regulation, liability mechanisms in respect of geological storage and CO2 leakage, and relevant corrective measures laid down by Directive 2003/87/EC and Directive 2009/31/EC of the European Parliament and of the Council1 should apply. In addition, to ensure regulatory consistency, the relevant certification methodologies should include monitoring rules and liability mechanisms which are consistent with the rules concerning permanently chemically bound carbon products pursuant to Directive 2003/87/EC.

(5 a) With specific regard to carbon farming activities, the regulation should value the carbon removals and greenhouse gas emission reductions generated by mitigation projects, as long as the latter are not subject to the application of a binding polluter-pays principle at the European level. The aim is to ensure broad support for the certification framework among land managers, while seeking to meet the ambitious greenhouse gas emission reduction targets for 2030, which remain a priority.

▌

~~Amendment 7~~

(15) Carbon removals, carbon farming and carbon storage in product activities have a strong potential to deliver win-win solutions for sustainability, even if trade-offs cannot be excluded. Therefore, it is appropriate to establish minimum sustainability requirements to ensure that those activities do not lead to significant harm to the environment and are able to generate co-benefits for the ▌ objectives of: climate change mitigation and adaptation; the protection and restoration of biodiversity and ecosystems, including soil health and avoidance of land degradation; the sustainable use and protection of water and marine resources; the transition to a circular economy, including the efficient use of sustainably sourced bio-based materials; and pollution prevention and control. Carbon farming activities should at least generate co-benefits for the objective of protection and restoration of biodiversity and eco-systems, including soil health as well avoidance of land degradation. Those minimum sustainability requirements should take into account the impacts both within and outside the Union as well as local conditions, and as appropriate, be consistent with the technical screening criteria for do no significant harm principle, and be in line with the sustainability and GHG emissions saving criteria for forest and agriculture biomass raw material laid down in ▌ Directive (EU) 2018/2001. Practices that produce harmful effects for biodiversity, such as forest monocultures producing harmful effects for biodiversity, should not be eligible for certification.

~~Proposal for a regulation~~

▌

~~Recital 6~~

(16) Farming and forestry practices that remove CO2 from the atmosphere or reduce soil emissions contribute to the climate neutrality objective and should be rewarded, either via the Common Agricultural Policy ▌ or other public or private initiatives. Specifically, this Regulation should take into account farming and forestry practices as referenced in the Commission Communication of 15 December 2021 on Sustainable Carbon Cycles, including afforestation, reforestation and activities within sustainable forest management; agroforestry and other forms of mixed farming; use of catch crops, cover crops conservation tillage and increasing landscape features; conversion of cropland to fallow or set aside areas to permanent grassland; and restoration of peatlands and wetlands. When developing certification methodologies in the context of carbon farming, the Commission should take into account the need to contribute to ensuring food security and promote the protection and the restauration of biodiversity and ecosystems, and to avoid that land is acquired for speculative purposes resulting in negative effects on rural communities, as well as respect the rights of local communities and indigenous people affected by those activities, where relevant in accordance with national law, both within and outside the Union. It should promote those activities that have the largest potential to provide positive co-benefits for biodiversity, as well as consider the long-term forest structure, the long-term stability of carbon pools, ecosystem health, resilience and risk of natural disturbances.

~~Text proposed by the Commission~~

(17) Operators or groups of operators should be able to report co-benefits that contribute to the sustainability objectives beyond the minimum sustainability requirements. To this end, their reporting should comply with the certification methodologies tailored to the different carbon removal activities, developed by the Commission. Certification methodologies should, as much as possible, incentivise the generation of co-benefits for biodiversity going beyond the minimum sustainability requirements, with a view to generate a premium for the certified units, by including for instance positive lists of activities that are deemed to generate co-benefits. These additional co-benefits would give more economic value to the certified units and would result in higher revenues for the operators. In the light of these considerations, it is appropriate for the Commission to prioritise the development of tailored certification methodologies on carbon farming activities that provide significant co-benefits for biodiversity, and contribute to sustainable management of agricultural land and forests.

~~Amendment~~

(18) The Commission should establish, via delegated acts, detailed certification methodologies for the different activities taking into account their specific characteristics in order to enable operators to apply, in a standardised, verifiable, cost-effective and comparable way, the quality criteria laid down in this Regulation. Those methodologies should ensure the robust and transparent certification of the net carbon removal or soil emission reduction benefit generated by the ▌ activity, while avoiding disproportionate administrative burden for operators or group of operators, in particular for small farmers and forest holders, notably by allowing the use of simplified certification and auditing rules such as group auditing. Those methodologies should be developed in close consultation with the Expert Group on Carbon Removals and all other interested actors. They should be based on the best available scientific evidence, build upon existing public and private schemes and methodologies for certification of carbon removals or soil emission reductions, and take into account any relevant standard and rules adopted at Union and national level.

(6) This Regulation should set out the requirements under which carbon removals should be eligible for certification under the Union certification framework. To this end, carbon removals should be quantified in an accurate and robust way; and they should be generated only by carbon removal activities that generate a net carbon removal benefit, are additional, aim to ensure long-term storage of carbon, and have a neutral impact or co-benefit on sustainability objectives. Furthermore, carbon removals should be subject to independent third-party auditing in order to ensure the credibility and reliability of the certification process. Mandatory Union carbon pricing rules established through Directive 2003/87/EC of the European Parliament and of the Council26 are in place which regulate the treatment of emissions from activities covered by that Directive. This Regulation should be without prejudice to Directive 2003/87/EC, except in relation to the certification of removals of emissions from sustainable biomass which are zero-rated in accordance with Annex IV thereto.

(18a) Given the need to rapidly scale up carbon removals in the Union, the Commission should at the first stage of the development of certification methodologies prioritise the following activities: activities that are the most mature, that can provide sustainability co-benefits or where Union legislation relevant for the development of those methodologies has already been adopted; carbon farming activities that contribute to sustainable management of agricultural land, forests, and the marine environment, as well as activities that store carbon in wood-based and bio-based construction products. The Innovation Fund established under Directive 2003/87/EC sets out rules relevant for the development of certification methodologies for bioenergy with carbon capture and storage and direct air capture. In order to avoid unsustainable demand of biomass raw material, the financial benefits related to the certification should not lead to an increase of the capacity of a bioenergy plant beyond what is necessary for the operation of the carbon capture and storage. It is appropriate that certification methodologies related to activities storing carbon into the marine environment, including oceans, take into account international progress in carbon removal reporting and the latest scientific information available and, when available, the findings of the Commission’s report prepared pursuant to Article 17(2) of the LULUCF Regulation. Furthermore, in order to promote the sustainable and efficient use of limited biomass resources, it is appropriate that certification methodologies related to activities using biomass ensure the application of the principle of the cascading use of biomass as laid down in Article 3(3) of Directive RED III, while relying on existing rules and procedures and avoid duplication. The rules for the implementation by national authorities of this principle are laid down in Article 3(3), 3(3a) and 3(3b) of Directive RED III.

~~(6) This Regulation should set out~~(19) ~~the~~In ~~requirements~~order ~~under~~to ~~which~~ensure ~~carbon~~a ~~removals~~credible and ~~GHG emission reduction within the~~reliable ~~scope~~certification ofprocess, ~~carbon~~▌ ~~farming~~activities should be ~~eligible for certification under the Union certification~~subject ~~framework.~~to Toindependent ~~this~~third-party ~~end,~~auditing ~~carbon~~carried ~~removals~~by ~~and~~certification ~~GHG~~bodies. ~~emissions~~In ~~under~~particular, ~~carbon~~all ~~farming~~activities should be ~~quantified~~subject into an ~~accurate~~initial ~~and~~certification ~~robust~~audit ~~way~~before ~~taking~~their ~~into~~implementation, ~~account~~verifying their ~~level~~compliance ofwith ~~uncertainty~~the inquality ~~order~~criteria toset ~~limit~~out ~~the~~in ~~risk~~this ofRegulation, ~~overestimating~~including the ~~quantity~~correct ofquantification ~~CO2~~of ~~removed~~the ~~from~~expected ~~the~~net ~~atmosphere;~~benefits. ~~and~~All ~~they~~activities should bealso ~~generated~~be ~~only~~subject byto ~~carbon~~periodic ~~removal~~re-certification ~~activities~~audits ~~that~~at ~~generate~~least aevery ~~net~~five ~~carbon~~years, ~~removal~~or ~~benefit,~~otherwise ~~are~~more ~~additional,~~frequently ~~aim~~as tospecified ~~ensure~~in ~~long-term~~the ~~storage~~applicable ofcertification ~~carbon,~~methodology ~~or,~~depending inon the ~~case~~characteristics of ~~carbon farming,~~the ~~temporary~~relevant ~~one,~~activity. ~~and~~The ~~have~~re-certification aaudits ~~neutral~~should ~~impact~~verify orthe ~~co-benefit~~compliance onof ~~sustainability~~the ~~objectives.~~activity ~~For~~with the ~~carbon~~quality ~~removals~~criteria ~~and~~of ~~GHG~~this ~~emissions~~Regulation ~~reductions~~and ~~achieved~~the ~~through~~net carbon ~~farming,~~removal ~~these~~benefit ~~should~~or ~~also~~net besoil ~~quantified~~emission inreduction anbenefit ~~accurate~~generated ~~and~~by ~~robust~~the ~~way,~~activity. ~~with~~As ~~information~~a ~~provided~~result ~~through~~of that re-certification audit, the ~~Land~~certification ~~Parcel~~body ~~Identification~~issue ~~System~~a ~~(LPIS)~~re-certification ~~database;~~audit ~~they~~report ~~should~~that ~~also~~includes bea ~~additional~~summary, and ~~create~~an ~~co-benefits.~~updated ~~Furthermore,~~certificate ~~carbon~~of ~~removals~~compliance. ~~and~~It ~~carbon~~is ~~farming~~possible ~~activities~~to ~~should~~conduct bemore ~~subject~~frequent tore-certification ~~independent~~audits, ~~third-party~~including ~~auditing~~annually, infor ~~order~~all toactivities, ~~ensure~~notably ~~the~~carbon ~~credibility~~farming ~~and~~activities. ~~reliability~~To ofreduce the ~~certification~~administrative ~~process.~~costs ~~Mandatory~~of ~~Union~~certification ~~carbon~~and ~~pricing~~re-certification, ~~rules~~operators ~~established~~may ~~through~~use ~~Directive~~reliable ~~2003/87/EC~~geographical ofinformation ~~the~~provided ~~European~~by ~~Parliament~~paying ~~and~~agencies ofthrough the ~~Council26~~Land ~~are~~Parcel inIdentification ~~place~~System ~~which~~(LPIS) ~~regulate~~set ~~the~~out ~~treatment~~in ofArticle ~~emissions~~68 ~~from~~of ~~activities~~Regulation ~~covered~~(EU) by2021/2116. ~~that~~To ~~Directive.~~this ~~This~~end, ~~Regulation~~the Commission should be ~~without~~empowered ~~prejudice~~to adopt implementing acts to ~~Directive~~set ~~2003/87/EC,~~out ~~except~~the instructure, ~~relation~~technical todetails, and the ~~certification~~minimum ofinformation ~~removals~~to ofbe ~~emissions~~contained ~~from~~in ~~sustainable~~the ~~biomass~~description ~~which~~of ~~are~~the ~~zero-rated~~▌ activity, and in ~~accordance~~the ~~with~~certification ~~Annex~~and IVre-certification ~~thereto.~~audit reports.

~~_________________~~

(20) Providing carbon farming operators with improved knowledge, tools and methods for a better assessment and optimisation of the certified carbon removals and of the soil emission reductions is key for cost-efficient implementation of mitigation actions and for securing their engagement in carbon farming. This is particularly relevant for Union small farmers or forest holders that often lack the know-how and the expertise required to implement carbon farming activities and to comply with the required quality criteria and related certification methodologies. Therefore, it is appropriate to require that producer organisations facilitate the provision of relevant advisory services through technical advice to their members. The Common Agricultural Policy and national State aid among others, can support financially the provision of advisory services, knowledge exchange, training, information actions or interactive innovation projects with farmers and foresters.

~~_________________~~

(20a) In its Communication on the 2040 target, the Commission indicates that it is crucial to create further business opportunities for a sustainable agrifood value chain and leverage private funds in synergy with public funding. This could be done with new market-based mechanisms to boost sustainable food, as this could result both in a better food price to reflect sustainability as well as a fair reward for farmers and new source of funding for investments. Only firm coordination with all industrial actors in the entire food value chain and focus on fair trading practices across that chain can unlock the right incentives for sustainable farming practices, ensure a decent and sustainable income for farmers and generate revenues to support the transition.

26 Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).

▌

~~Amendment 8~~

▌

~~Proposal for a regulation~~

▌

~~Recital 6 a (new)~~

(22) To ensure an accurate, robust and transparent verification, certification bodies responsible for performing the certification process should have the required competences and skills and should be accredited by national accreditation authorities pursuant to Regulation (EC) No 765/2008 of the European Parliament and of the Council or be recognised by a national competent authority. To avoid possible conflicts of interest, the certification bodies should also be completely independent from the operator carrying out the ▌ activity that is subject to the certification. In addition, Member States should contribute towards ensuring the correct implementation of the certification process by supervising the operation of certification bodies that are accredited by national accreditation authorities, and by informing the certification schemes about relevant non-conformity findings.

~~Text proposed by the Commission~~

~~Amendment~~

(24) In order to ensure a reliable and harmonised control of certification, the Commission should be able to adopt decisions recognising certification schemes that meet the requirements set out in this Regulation, including with respect to technical competence, reliability, transparency and independent auditing. Such recognition decisions should be limited in time and should be made publicly available. To this end, the Commission should be empowered to adopt implementing acts on the content and processes of Union recognition of certification schemes.

(6a) Biochar production should adhere to strict sustainability criteria, such as the ones set out by the European Biochar Certificate and have to include a life-cycle and input sourcing impact assessment provided by a third party. For application in soils, thresholds to guarantee safe usage and storage are set in the EU fertilizer product regulation. Thresholds for other applications e.g. the usage in materials are set within the European Biochar Certificate.

(25) The provisions of the United Nations Economic Commission for Europe (UNECE) Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters ▌ (‘the Aarhus Convention’), approved by Council Decision 2005/370/EC, relating to public participation and to access to justice remain applicable, where relevant.

~~Amendment 9~~

(26) ▌In order to ensure transparency and full traceability of certified units, and to avoid the risk of fraud and double counting, by… [OJ: 4 years after the entry into force of this Regulation], the Commission should establish and manage a Union wide registry for carbon removals and soil emission reductions (‘Union registry’). The Commission should take into account the reports referred to in Article 30(5a) of Directive 2003/87/EC and Article 17(3) of Regulation (EU) 2018/841. Where a concern on fraud is raised, the Commission should investigate the matter and take appropriate action, including by repealing relevant decisions or cancelling the affected units. For example, fraud may occur if more than one certificate is issued for the same ▌ activity because the activity has been registered under two different certification schemes or has been registered twice under the same scheme. Fraud may also occur when the same certificate is used several times to make the same claim based on a carbon ▌ activity or a certified unit. The Union registry should use automated systems, including electronic templates to make publicly available as a minimum, the information set out in Annex IIa. It is appropriate that the operation of the Union registry is financed by annual fees payable by users, proportionate to the use of the registry, to sufficiently contribute covering the annual operating costs of establishment and management of the Union registry, such as those for staff or IT tools. Resources from such fees should constitute external assigned revenue for the purpose of Article 21(5) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council [add reference in footnote]. They should, in particular, cover the costs of IT tools, services, security, their operations and licensing systems and the costs of staff working on the management of the Union Registry. The Commission should, via delegated acts, set out the necessary requirements concerning the Union registry and the factors to be considered for determining the level of users’ fees and their recovery. When setting up those requirements the Commission should also consider the need to ensure sufficient oversight of the trading in certified units. During each last quarter of the year preceding the calendar year of application, the Commission should adopt one or more implementing acts to set out or revise the individual amounts of the user’s fees, to be applied for that calendar year. Until the establishment of the Union registry, certification schemes recognised by the Commission should establish and maintain interoperable certification registries. In order to ensure transparency and full traceability of certified units, and to avoid the risk of fraud and double counting, the certification schemes should also use automated systems, including electronic templates to make publicly available as a minimum, the information set out in Annex IIa. In order to ensure a level playing field within the internal market, the Commission should be empowered to adopt implementing rules setting out standards and technical rules on the functioning and the inter-operability of those certification registries. Certified units should be issued by certification registries or, by [OJ: 4 years after the entry into force of this Regulation], by the Union registry only after the generation of a net carbon removal benefit or net soil emission reduction benefit, based on a valid certificate of compliance resulting from a re-certification audit. To avoid double issuance and double use, any certified unit should not be issued more than once, and any certified unit should not be used by more than one legal or natural person at any point in time. Permanent carbon removal units, carbon farming sequestration units, carbon storage in products units, and soil emission reduction units shall remain distinct from each other. In order to account for their inherent risks of reversal of removed carbon, carbon farming sequestration units and carbon storage in product units should expire at the end of the monitoring period of the relevant activity, and be cancelled from the certification registry or, by [OJ: 4 years after the entry into force of this Regulation], from the Union registry, unless the operator or the group of operators commits to prolonging the monitoring period, according to the rules set out in the applicable certification methodology.

~~Proposal for a regulation~~

(27) Certification schemes play an important role in providing evidence of compliance with this Regulation. Therefore certification schemes should report to the Commission regularly on their activity. Such reports should be made public, in full or where appropriate in an aggregated format, in order to increase transparency and to improve supervision by the Commission. Furthermore, such reporting would provide the necessary information for the Commission to report on the operation of the certification schemes with a view to identifying best practices and submitting, if appropriate, a proposal to further promote such best practices. In order to ensure comparable and consistent reporting, the Commission should be empowered to adopt implementing acts setting out the technical details on the content and format of the reports drawn up by the certification schemes.

~~Recital 7~~

(28) In order to amend or supplement non-essential elements of this Regulation ▌ , the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to establish detailed certification methodologies for different types of ▌ activities, to set out standards and technical rules on the functioning of the Union registry and to specify or amend Annexes I and II. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

~~Text proposed by the Commission~~

(29) The implementing powers conferred on the Commission should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council. In order to exercise the implementing powers laid down in this Regulation, the Commission should be assisted in its tasks under this Regulation by the Climate Change Committee established by Regulation (EU) 2018/1999 of the European Parliament and of the Council.

~~Amendment~~

(30) The Commission should review the implementation of this Regulation [Three years after [OJ: date of entry into force of this Regulation] or by 31 December 2028 which ever comes first], and subsequently not later than six months after the global stocktake agreed under Article 14 of the Paris Agreement. This Regulation should be kept under review in all aspects, taking into account relevant developments concerning Union legislation, including its coherence with Directive 2003/87/EC and Directive (EU) 2018/2001, Regulation (EU) 2021/1119, and Regulation (EU) 2018/842 and Regulation (EU) 2018/841; the relevant developments concerning the United Nations Framework Convention on Climate Change and the Paris Agreement, including rules and guidelines related to the implementation of article 6; technological and scientific progress, best practices and market developments in the field of carbon removals; the potential for permanent carbon storage in third countries, subject to international agreements referred to in Chapter III of [NZIA], while providing for equivalent conditions to those laid out in the CCS directive to ensure permanently secure and environmentally safe geological storage of captured CO2; the environmental impacts of increased biomass use resulting from this Regulation, including impacts on land degradation and ecosystem restoration; the impacts on the Union food security and land speculation; and the cost of the certification process.

(7) A carbon removal activity should result in a net carbon removal benefit showing that it delivers a positive climate impact. The net carbon removal benefit should be computed following two steps. First, operators should quantify the amount of additional carbon removals that a carbon removal activity has generated in comparison to a baseline. A standardised baseline reflecting the standard performance of comparable activities in similar social, economic, environmental and technological circumstances and geographical locations should be preferred because it ensures objectivity, minimises compliance and other administrative costs, and positively recognises the action of first movers who have already engaged in carbon removal activities. In the context of carbon farming, the use of available digital technologies, including electronic databases and geographic information systems, remote sensing, artificial intelligence and machine learning, and of electronic maps should be promoted to decrease the costs of establishing baselines and of monitoring carbon removal activities. However, where it is not possible to set such a standardised baseline, a project-specific baseline based on the operator’s individual performance may be used. In order to reflect the social, economic, environmental and technological developments and to encourage ambition over time in line with the Paris Agreement, baselines should be periodically updated.

(30a) By 31 July 2026, the Commission should review the inclusion of the IPCC source category of agriculture, sub-category of 4a enteric fermentation and 4b manure management, as determined pursuant to Regulation (EU) 2018/1999 and the implementing acts adopted pursuant, in the emission reductions covered by this Regulation, taking into consideration opportunity costs, the evolution of regulatory framework, possible negative effects leading to GHG-emission increase, the Union 2040 climate target, as proposed in accordance with Article 4(3) of the European Climate law and, where appropriate, present a legislative proposal. In the context of this review, it is appropriate to consider how the potential units generated by such activities should be categorized. It is also appropriate to accelerate the development of a pilot certification methodology for activities that reduce agricultural emissions from enteric fermentation and manure management, in preparation of the 2026 review by the Commission.

(7) A certified carbon removal and carbon farming activity should result in a net carbon removal benefit showing that it delivers a positive climate impact. The net carbon removal benefit should be computed following two steps. First, operators should quantify the amount of additional carbon removals that a carbon removal activity has generated in comparison to a baseline. In the case of carbon farming, furthermore, operators should also quantify the GHG emissions reductions set against the baseline. A standardised baseline reflecting the standard performance of comparable activities in similar social, economic, environmental and technological circumstances and geographical locations should be preferred because it ensures objectivity, minimises compliance and other administrative costs, and positively recognises the action of first movers who have already engaged in carbon removal activities. In the context of carbon farming, the use of available digital technologies, including electronic databases and geographic information systems, remote sensing, novel in-field carbon quantification systems artificial intelligence and machine learning, and of electronic maps should be promoted to decrease the costs of establishing baselines and of monitoring carbon removal activities. However, where it is not possible to set such a standardised baseline, a project-specific baseline based on the operator’s individual performance may be used. Data protection demands should be high, since much of the data collected may be personal data. In order to reflect the social, economic, environmental and technological developments and to encourage ambition over time in line with the Paris Agreement, baselines should be periodically updated while keeping the administrative burden manageable, in particular for individual operators.

(30b) It is appropriate that certificates of compliance and certified units underpin different end-uses, such as, the proof of climate-related and other environmental corporate claims (including on biodiversity), or the exchange of certified units through voluntary carbon markets. To this end, the Commission should assess, and where appropriate present a legislative proposal, on the need for additional requirements to align this Regulation with the rules and guidance of Article 6.2 and Article 6.4 of the Paris Agreement and with best practices in the voluntary carbon markets. This assessment should compare methodological requirements, including baselines, monitoring period, activity period, additionality, leakage, non-permanence and liability, as well as address requirements related to authorisation and corresponding adjustments. It should also identify whether it is appropriate to differentiate end-uses for each type of units, as well as the corresponding requirements for the use of units by private actors or third parties, including for the voluntary carbon markets and international compliance schemes, ensuring consistency with relevant Union legal acts such as Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting, the European Climate Law, Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, the registry for internationally transferred mitigation outcomes pursuant to Article 6 of the Paris Agreement referred to in Article 40 of Regulation (EU) 2018/1999 and an upcoming Directive on substantiation and communication of explicit environmental claims.

~~Amendment 10~~

(31) Since the objectives of this Regulation, namely to promote the deployment of high quality carbon removals and soil emission reductions while minimising the risk of greenwashing, cannot be sufficiently achieved by the Member States but can rather by reason of the scale and effects of the proposed action ▌ be better achieved at Union level ▌ , the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary to achieve those objectives,

~~Proposal for a regulation~~

HAVE ADOPTED THIS REGULATION:

~~Recital 8~~

Chapter 1 GENERAL PROVISIONS

~~Text proposed by the Commission~~

Article 1

~~Amendment~~

Subject matter and scope

(8) The second step for quantifying the net carbon removal benefit should consist of subtracting any increase in greenhouse gas emissions related to the implementation of the carbon removal activity. Relevant greenhouse gas emissions that should be taken into consideration include direct emissions, such as those resulting from the use of more fertilisers, fuel or energy, or indirect emissions, such as those resulting from land use change, with consequent risks for food security due to displacement of agricultural production. A reduction in greenhouse gas emissions resulting from the implementation of the carbon removal activity should not be taken into account to quantify the net carbon removal benefit, but should be considered as a co-benefit towards the sustainability objective of climate change mitigation; by being reported on the certificates, decreases in greenhouse gas emissions (like the other sustainability co-benefits) can increase the value of the certified carbon removals.

1. The objective of this Regulation is to facilitate and encourage the deployment of permanent carbon removals, carbon farming and carbon storage in products as a complement to sustained emission reductions across all sectors to meet the objectives and targets laid down in Regulation (EU) 2021/1119, by operators or groups of operators. To that end, this Regulation establishes a voluntary Union framework for the certification of carbon removals and soil emission reductions by laying down:

(8) The second step for quantifying the net carbon removal benefit should consist of subtracting any increase in greenhouse gas emissions related to the implementation of the carbon removal activity. Relevant greenhouse gas emissions that should be taken into consideration include direct emissions, such as those resulting from the use of more fertilisers, fuel or energy, or indirect emissions, such as those resulting from land use change, with consequent risks for food security due to displacement of agricultural production. Reporting co-benefits on certificates can increase the value of the carbon farming premium. For carbon farming activities, the reduction of GHG emissions shall be taken into account for the net carbon farming benefit of the activity.

(-a) row to be deleted

~~Amendment 11~~

(a) quality criteria for ▌ activities that take place in the Union;

~~Proposal for a regulation~~

(b) rules for the verification and certification of carbon removals and soil emission reductions generated by activities;

~~Recital 9~~

~~Text proposed by the Commission~~

(ca) rules on the issuance and use of certified units.

~~Amendment~~

2. This Regulation aims to support the achievement of the Union objectives under the Paris Agreement, in particular the collective achievement of the climate neutrality objective at the latest by 2050 laid down in Regulation (EU) 2021/1119. Accordingly, all carbon removals and emission reductions generated under this Regulation shall contribute to achieving the Union’s Nationally Determined Contribution and its climate objectives and not to third party-NDC or international compliance schemes.

(9) A carbon removal activity delivers a net carbon removal benefit when the carbon removals above the baseline outweigh any increase in greenhouse gas emissions due to the implementation of the carbon removal activity. For instance, in the case of activities that deliver permanent carbon storage by injecting carbon underground, the amount of permanently stored carbon should outweigh the energy-related greenhouse gas emissions from the industrial process. In the case of carbon farming, the carbon captured by an afforestation activity or the carbon kept in the ground by a peatland re-wetting activity should outweigh the emissions from the machinery used to carry out the carbon removal activity or the indirect land use change emissions that can be caused by carbon leakage.

▌

(9) A carbon removal activity delivers a net carbon removal benefit when the carbon removals above the baseline outweigh any increase in greenhouse gas emissions due to the implementation of the carbon removal activity. For instance, in the case of activities that deliver permanent carbon storage by injecting carbon underground, the amount of permanently stored carbon should outweigh the energy-related greenhouse gas emissions from the industrial process. In the case of carbon farming, the net carbon farming removal benefit of the carbon captured by an afforestation activity or the carbon kept in the ground by a peatland re-wetting activity should be positive and should outweigh the emissions from the machinery used to carry out the carbon removal activity or the indirect land use change emissions that can be caused by carbon leakage. Farmers, forest owners and managers should strive to achieve GHG emission reductions, which shall be quantified and accounted for as part of the net carbon farming benefit.

▌

~~Amendment 12~~

3. This Regulation does not apply to emissions falling within the scope of Directive 2003/87/EC, with the exception of the storage of CO2 emissions from biofuels, bioliquids and biomass fuels that meet the sustainability criteria and greenhouse gas emissions saving criteria established under article 29 of Directive (EU) 2018/2001, with any necessary adjustments for application under Directive 2003/87/EC, as set out in the implementing acts referred to in Article 14 of Directive 2003/87/EC, in accordance with Annex IV of Directive 2003/87/EC.

~~Proposal for a regulation~~

▌

~~Recital 10~~

Article 2

~~Text proposed by the Commission~~

Definitions

~~Amendment~~

1. For the purposes of this Regulation, the following definitions apply:

(10) Carbon removals should be quantified in a relevant, accurate, complete, consistent and comparable manner. Uncertainties in the quantification should be duly reported and accounted in order to limit the risk of overestimating the quantity of carbon dioxide removed from the atmosphere. Carbon removals generated by carbon farming should be quantified with a high level of accuracy to assure the highest quality and minimise uncertainties. Moreover, in order to incentivise synergies between Union climate and biodiversity objectives, enhanced monitoring of land needs to be required, thereby helping to protect and enhance the resilience of nature-based carbon removals throughout the Union. The satellite and on-site monitoring and reporting of emissions and removals need to closely reflect those approaches, and make the best use of advanced technologies available under Union programmes, such as Copernicus, making full use of already existing tools, and ensure consistency with the national greenhouse gas inventories.

(a) ‘carbon removal’ means the anthropogenic removal of carbon from the atmosphere and its durable storage in geological, terrestrial or ocean reservoirs, or in long-lasting products;

(10) Carbon removals should be quantified in a relevant, accurate, complete, consistent and comparable and well-defined manner. Uncertainties in the quantification should be duly reported and accounted in order to limit the risk of overestimating the quantity of carbon dioxide removed from the atmosphere. Carbon removals and GHG emissions reductions generated by carbon farming should be quantified with a high level of accuracy and transparency, in line with validated and consistent criteria to assure the highest quality and minimise uncertainties. Moreover, in order to incentivise synergies between Union climate and biodiversity objectives, enhanced monitoring of land is needed, thereby helping to protect and enhance the resilience of nature-based carbon removals throughout the Union. The satellite and on-site monitoring and reporting of emissions and removals need to closely reflect those approaches, and make the best use of advanced technologies available under Union programmes, such as Copernicus, making full use of already existing tools, and ensure consistency with the national greenhouse gas inventories.

(aa) soil emission reduction’ means the reduction of net GHG emissions from biogenic carbon pools as set out in points (e) and (f) of Section B of Annex I to Regulation 2018/841 or the reduction of GHG emissions from the IPCC source category of Agriculture, sub-category of 4d agricultural soils, as determined pursuant to Regulation (EU) 2018/1999 and the implementing acts adopted pursuant to it, where the latter overall reduces the emission of carbon from soil carbon pools or increases carbon removals into biogenic carbon pools;

~~Amendment 13~~

▌

~~Proposal for a regulation~~

▌

~~Recital 11~~

▌

~~Text proposed by the Commission~~

(bb) ‘activity’ means one or more practices or processes carried out by an operator, or a group of operators, resulting in a permanent carbon removal, temporary carbon removal from carbon farming or from carbon storage in products, or soil emission reductions from carbon farming where the latter overall reduces the emissions of carbon from soil carbon pools or increase carbon removals in biogenic carbon pools.

~~Amendment~~

(c) ‘biogenic carbon pool’ means living biomass, litter, dead wood, dead organic matter, mineral soils and organic soils as set out in points (a) to (f) of Part B of Annex I to Regulation 2018/841;

(11) In order to ensure that the Union certification framework channels incentives toward carbon removals that go beyond the standard practice, carbon removal activities should be additional. Therefore, these activities should go beyond statutory requirements, that is, operators should carry out activities that are not already imposed upon them by the applicable law. Moreover, carbon removal activities should take place due to the incentive effect provided by the certification. Such effect is present when the incentive created by the potential revenues, resulting from the certification, changes the behaviour of operators in such a way that they engage in the additional carbon removal activity to achieve additional carbon removals.

(d) ‘operator’ means any legal or natural person or public entity who operates or controls an activity, or to whom decisive economic power over the technical functioning of the activity has been delegated; in the case of a carbon farming activity, ‘operator’ means a farmer as defined in Article 3(1) of Regulation (EU) 2021/2115 or any other manager of an activity in land or coastal environment, or a forest owner or manager as defined by national law, or a competent public entity;

(11) In order to ensure that the Union certification framework channels incentives toward carbon removals and GHG emissions reductions that go beyond the standard practice, carbon removal and carbon farming activities should be additional. Therefore, these activities should go beyond statutory requirements, that is, operators should carry out activities that are not already imposed upon them by the applicable law. Moreover, carbon removal and carbon farming activities should take place due to the incentive effect provided by the certification and should allow operators to adopt practices to generate additional revenues on a voluntary basis. Such effect is present when the incentive created by the potential revenues, resulting from the certification, changes the behaviour of operators in such a way that they engage in the additional carbon removal activity to achieve additional carbon removals.

(e) ‘group of operators’ means a legal entity that represents at least two operators and is responsible for ensuring that those operators comply with this Regulation;

~~Amendment 14~~

(ea) ‘activity period’ means a period over which the activity generates a net carbon removal benefit or a net soil emission reduction benefit, and which is determined in the applicable certification methodology;

~~Proposal for a regulation~~

(f) ‘monitoring period’ means a period over which the soil emission reduction or storage of carbon is monitored by an operator or a group of operators and which covers at least the activity period as determined in the applicable certification methodology;

~~Recital 12~~

(g) ‘permanent carbon removal’ means any practice or process that, under normal circumstances and using appropriate management practices, captures and stores atmospheric or biogenic carbon for several centuries, including permanently chemically bound carbon in products, and which is not combined with Enhanced Hydrocarbon Recovery;

~~Text proposed by the Commission~~

(h) ‘carbon farming’ means any practice or process, carried out over an activity period of at least five years, related to terrestrial or coastal management and resulting in capture and temporary storage of atmospheric and biogenic carbon into biogenic carbon pools or the reduction of soil emissions;

~~Amendment~~

▌

(12) A standardised baseline should reflect the statutory and market conditions in which the carbon removal activity takes place. If a carbon removal activity is imposed upon operators by the applicable law, or it does not need any incentives to take place, its performance will be reflected in the baseline. For this reason, a carbon removal activity that generates carbon removals in excess of such a baseline should be presumed to be additional. Hence, the use of a standardised baseline should simplify the demonstration of additionality for operators. Therefore, it should reduce the administrative burden of the certification process, which is particularly important in the case of small-scale land managers.

(i) ‘carbon storage in products’ means any practice or process that captures and stores atmospheric or biogenic carbon for at least 35 years in long-lasting products and which allows on-site monitoring of the carbon stored and certified throughout the monitoring period;

(12) A standardised baseline should reflect the statutory and market conditions in which the carbon removal or carbon farming activity takes place. If a carbon removal activity is imposed upon operators by the applicable law, or it does not need any incentives to take place, its performance will be reflected in the baseline. In the case of carbon farming in arable mineral soils, the standardised baseline can be considered as fixed, given that the current carbon removal rates in mineral soils in the EU are on average close to zero. For this reason, a carbon removal activity that generates carbon removals in excess of such a baseline should be presumed to be additional. Hence, the use of a standardised baseline should simplify the demonstration of additionality for operators. Therefore, it should reduce the administrative burden of the certification process, which is particularly important in the case of small-scale land managers.

(ia) ‘permanently chemically bound carbon in products’ means that the carbon does not enter the atmosphere under normal use, including any normal activity taking place after the end of life of the product, in accordance with Article 12(3b) of Directive 2003/87/EC;

~~Amendment 15~~

(ib) ‘geological storage of CO2’ means geological storage of CO2 as defined in Article 3(1) of Directive 2009/31/EC;

~~Proposal for a regulation~~

(j) ‘certification body’ means an independent, accredited or recognised conformity assessment body that has concluded an agreement with a certification scheme to carry out certification audits and issue certificates of compliance;

~~Recital 13~~

(k) ‘certification scheme’ means an organisation that certifies the compliance of activities and operators with the quality criteria and certification rules set out in this Regulation;

~~Text proposed by the Commission~~

(l) ‘certification audit’ means an audit carried out by a certification body;

~~Amendment~~

(m) ‘re-certification audit’ means an audit carried out in the process of renewing a certificate issued by a certification body;

(13) Atmospheric and biogenic carbon that is captured and stored through a carbon removal activity risks being released back into the atmosphere (e.g. reversal) due to natural or anthropogenic causes. Therefore, operators should take all relevant preventive measures to mitigate those risks and duly monitor that carbon continues to be stored over the monitoring period laid down for the relevant carbon removal activity. The validity of the certified carbon removals should depend on the expected duration of the storage and the different risks of reversal associated with the given carbon removal activity. Activities that store carbon in geological formations provide enough certainties on the very long-term duration of several centuries for the stored carbon and can be considered as providing permanent storage of carbon. Carbon farming or carbon storage in products are more exposed to the risk of voluntary or involuntary release of carbon into the atmosphere. To account for this risk, the validity of the certified carbon removals generated by carbon farming and carbon storage in products should be subject to an expiry date matching with the end of the relevant monitoring period. Thereafter, the carbon should be assumed to be released into the atmosphere, unless the economic operator proves the maintenance of the carbon storage through uninterrupted monitoring activities.

(n) ‘certificate of compliance’ means a conformity statement issued by the certification body certifying that the activity complies with this Regulation;

(13) Atmospheric and biogenic carbon that is captured and stored through a carbon removal activity risks being released back into the atmosphere (e.g. reversal) due to natural or anthropogenic causes. The different types of carbon removal activities vary in terms of the removal process, the storage medium and the timescales of the storage, which can vary from decades to centuries for carbon farming or storage in certain products, to permanent storage. For this reason, different rules should be set out for these kind of activities. Both permanent and temporary carbon removals can contribute to meeting climate goals, but under different conditions. Operators should be encouraged to take all relevant preventive measures to mitigate those risks and duly monitor that carbon continues to be stored over the monitoring period laid down for the relevant carbon removal activity. The validity of the certified carbon removals should depend on the expected duration of the storage and the different risks of reversal associated with the given carbon removal activity. Among other possibilities, activities that store carbon in geological formations provide enough certainties on the very long-term duration of several centuries for the stored carbon and can be considered as providing permanent storage of carbon. Carbon farming or carbon storage in products are more exposed to the risk of voluntary or involuntary release of carbon into the atmosphere. To account for this risk, the validity of the certified carbon removals generated by carbon farming and carbon storage in products should not be subject to an expiry date but should be further defined per carbon farming activity in the certification methodology. The risk of reversibility of carbon storage should be accounted for in the percent rate of units to be put in a pool managed by the certification scheme, as set out per carbon farming activity in the delegated act. Carbon removal portfolio managers could also have the option of a proportioned liability mechanism that monitors portfolio-wide longevity performance for instance through a combination of remote-sensing and in-situ sampling technologies. Farmers should not be discouraged to take up carbon farming activities that store carbon on temporary basis, as these activities can sequester significant amounts of carbon in the short term. The reversibility risk of this temporary carbon storage can be addressed through tools such as mutual funds, insurance or rebate systems.

(o) ‘permanent carbon removal unit’ means one metric tonne CO2 equivalent of certified permanent net carbon removal benefit generated by a permanent carbon removal activity and registered by a certification scheme in its certification registry or, as appropriate, in the Union registry referred to in Article 12;

~~Amendment 16~~

(oa) ‘soil emission reduction unit’ means one metric tonne CO2 equivalent of certified net soil emission reduction benefit generated by a soil emission reduction activity and registered by a certification scheme in its certification registry or, as appropriate, in the Union registry referred to in Article 12;

~~Proposal for a regulation~~

(ob) ‘reversal’ means, in the case of geological storage of CO2, “leakage” as defined in Article 3(5) of Directive 2009/31/EC and, for other activities, the voluntary or involuntary release of carbon captured and stored by an activity back into the atmosphere;

~~Recital 14~~

(oc) ‘carbon farming sequestration unit’ means one metric tonne CO2 equivalent of certified temporary net carbon removal benefit generated by a carbon farming activity and registered by a certification scheme in its certification registry or, as appropriate, in the Union registry referred to in Article 12;

~~Text proposed by the Commission~~

(od) ‘carbon storage in product unit’ means one metric tonne CO2 equivalent of certified temporary net carbon removal benefit generated by a carbon storage in product activity and registered by a certification scheme in its certification registry or, as appropriate, in the Union registry referred to in Article 12.

~~Amendment~~

▌

(14) In addition to measures taken to minimise the risk of carbon release into the atmosphere during the monitoring period, appropriate liability mechanisms should be introduced to address cases of reversal. Such mechanisms could include e.g. discounting of carbon removal units, collective buffers or accounts of carbon removal units, and up-front insurance mechanisms. Since liability mechanisms in respect of geological storage and CO2 leakage, and relevant corrective measures have already been laid down by Directive 2003/87/EC and Directive 2009/31/EC of the European Parliament and of the Council27 , those liability mechanisms and corrective measures should apply to avoid double regulation.

Article 3

(14) In addition to measures taken to minimise the risk of carbon release into the atmosphere during the monitoring period, appropriate liability mechanisms should be introduced to address cases of reversal, taking into account extreme weather and force majeure events that might affect land-based carbon storage. Such mechanisms could include e.g. discounting of carbon removal units or carbon farming removal units, mutual funds, collective buffers or accounts of carbon removal units or carbon farming removal units, and up-front insurance mechanisms. Since liability mechanisms in respect of geological storage and CO2 leakage, and relevant corrective measures have already been laid down by Directive 2003/87/EC and Directive 2009/31/EC of the European Parliament and of the Council27 , those liability mechanisms and corrective measures should apply to avoid double regulation.

Eligibility for certification

~~_________________~~

Carbon removals and soil emission reductions shall be eligible for certification under this Regulation where they meet both of the following conditions:

~~_________________~~

(a) they are generated from an activity that complies with the quality criteria set out in Articles 4 to 7;

27 Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide and amending Council Directive 85/337/EEC, European Parliament and Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC and Regulation (EC) No 1013/2006 (OJ L 140, 5.6.2009, p. 114).

▌

(b) they are independently verified in accordance with Article 9.

~~Amendment 17~~

▌

~~Proposal for a regulation~~

▌

~~Recital 15~~

▌

~~Text proposed by the Commission~~

Chapter 2 QUALITY CRITERIA

~~Amendment~~

Article 4

(15) Carbon removal activities have a strong potential to deliver win-win solutions for sustainability, even if trade-offs cannot be excluded. Therefore, it is appropriate to establish minimum sustainability requirements to ensure that carbon removal activities have a neutral impact or generate co-benefits for the sustainability objectives of climate change mitigation and adaptation, the protection and restoration of biodiversity and ecosystems, the sustainable use and protection of water and marine resources, the transition to a circular economy, and pollution prevention and control. Those sustainability requirements should, as appropriate, and taking into consideration local conditions, build on the technical screening criteria for Do Not Significant Harm concerning forestry activities and underground permanent geological storage of CO2, laid down in Commission Delegated Regulation (EU) 2021/213928 , and on the sustainability criteria for forest and agriculture biomass raw material laid down in Article 29 of Directive (EU) 2018/2001 of the European Parliament and of the Council29 . Practices, such as forest monocultures, that produce harmful effects for biodiversity should not be eligible for certification.

Quantification

(15) Carbon removal and carbon farming activities have a strong potential to deliver win-win solutions for sustainability, even if trade-offs cannot be excluded. Therefore, it is appropriate to establish minimum environmental, economic and social sustainability requirements to ensure that carbon removal activities have a neutral impact or generate co-benefits for the sustainability objectives of climate change mitigation and adaptation, the protection and restoration of biodiversity and ecosystems, the sustainable use and protection of water and marine resources, protection of soil quality and prevention of erosion, agricultural productivity, product quality, the fair remuneration of operators, the transition to a circular biobased economy, and pollution prevention and control. The implementation of this Regulation must not endanger the productive capacity of agricultural and forestry holdings but at the same time provide new economic opportunities for farmers. Therefore, carbon farming should have a neutral impact on food security, food production, availability and food supply in the Union or in the third countries. Those sustainability requirements should, as appropriate, and taking into consideration local conditions, be consistent with the technical screening criteria for Do Not Significant Harm concerning underground permanent geological storage of CO2, laid down in Commission Delegated Regulation (EU) 2021/213928 . Carbon farming activities should generate positive co-benefits to at least one additional practice set out, such as prevention and improvement of water quality, protection of soil quality and prevention of erosion, agricultural productivity, product quality, the fair remuneration of operators, protection of biodiversity and others.

1. A permanent carbon removal activity shall provide a permanent net carbon removal benefit, which shall be quantified using the following formula:

~~_________________~~

Permanent net carbon removal benefit = CRbaseline – CRtotal – GHGassociated > 0

~~_________________~~

where:

28 Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021 supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation and for determining whether that economic activity causes no significant harm to any of the other environmental objectives (OJ L 442, 9.12.2021, p. 1).

~~29 Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82).~~

~~Amendment 18~~

~~Proposal for a regulation~~

~~Recital 16~~

~~Text proposed by the Commission~~

~~Amendment~~

(16) Farming practices that remove CO2 from the atmosphere contribute to the climate neutrality objective and should be rewarded, either via the Common Agricultural Policy (CAP) or other public or private initiatives. Specifically, this Regulation should take into account farming practices as referenced in the Communication on Sustainable Carbon Cycles30 .

(16) Farming practices that remove CO2 from the atmosphere or reduce the GHG emissions released contribute to the climate neutrality objective and provide positive co-benefits for ecosystems, biodiversity and climate change adaptation and should be rewarded, through public or private initiatives, such as sustainable private finance, voluntary carbon markets and product claims or be marketed in the emission allowance system. In order to ensure that carbon farming credits provide an additional income stream for farmers, the value of the credits should be funded from outside the Common Agriculture Policy (CAP), while CAP can cover setting-up of the carbon farming activity.

~~_________________~~

~~30 Communication from the Commission, Sustainable Carbon Cycles, COM (20221) 800.~~

~~Amendment 19~~

~~Proposal for a regulation~~

~~Recital 17~~

~~Text proposed by the Commission~~

~~Amendment~~

(17) Operators or groups of operators may report co-benefits that contribute to the sustainability objectives beyond the minimum sustainability requirements. To this end, their reporting should comply with the certification methodologies tailored to the different carbon removal activities, developed by the Commission. Certification methodologies should, as much as possible, incentivise the generation of co-benefits for biodiversity going beyond the minimum sustainability requirements. These additional co-benefits will give more economic value to the certified carbon removals and will result in higher revenues for the operators. In the light of these considerations, it is appropriate for the Commission to prioritise the development of tailored certification methodologies on carbon farming activities that provide significant co-benefits for biodiversity.

(17) Operators or groups of operators may report social, environmental and economic co-benefits that contribute to the sustainability objectives beyond the minimum sustainability requirements. To this end, their reporting should comply with the certification methodologies tailored to the different carbon removal activities, developed by the Commission. Certification methodologies should, as much as possible, incentivise the generation of co-benefits for biodiversity going beyond the minimum sustainability requirements. These additional co-benefits will give more economic value to the certified carbon removals and will result in higher revenues for the operators.

~~Amendment 20~~

~~Proposal for a regulation~~

~~Recital 18~~

~~Text proposed by the Commission~~

~~Amendment~~

(18) It is appropriate to develop detailed certification methodologies for the different carbon removal activities in order to apply, in a standardised, verifiable and comparable way, the quality criteria laid down in this Regulation. Those methodologies should ensure the robust and transparent certification of the net carbon removal benefit generated by the carbon removal activity, while avoiding disproportionate administrative burden for operators or group of operators, in particular for small farmers and forest holders. To this end, the Commission should be empowered to supplement this Regulation by adopting delegated acts establishing detailed certification methodologies for the different carbon removal activities. Those methodologies should be developed in close consultation with the Expert Group on Carbon Removals and all other interested actors. They need to be based on the best available scientific evidence, build upon existing public and private schemes and methodologies for carbon removal certification, and take into account any relevant standard and rules adopted at national and Union level.

(18) It is appropriate to develop detailed certification methodologies for the different carbon removal and carbon farming activities in order to apply, in a standardised, verifiable and comparable way, the quality criteria laid down in this Regulation. Those methodologies should ensure the robust and transparent certification of the net carbon removal or farming benefit generated by the carbon removal or farming activity, in line with validated and consistent criteria in the EU while avoiding disproportionate administrative and financial burden for operators or group of operators, in particular for small farmers and forest holders. To this end, the Commission should be empowered to supplement this Regulation by adopting delegated acts establishing detailed certification methodologies for the different carbon removal activities. Those methodologies should be developed in close consultation with the Expert Group on Carbon Removals and all other interested actors. They need to be based on the best available and most recent scientific evidence, and on the situation on the ground build upon existing public and private schemes and methodologies for carbon removal certification, and take into account any relevant standard and rules adopted at national and Union level. The development of these methodologies should include a call for evidence supporting the drafting of the methodologies and a call for feedback on the draft methodologies, providing all interested stakeholders the possibility to contribute.

~~Amendment 21~~

~~Proposal for a regulation~~

~~Recital 19~~

~~Text proposed by the Commission~~

~~Amendment~~

(19) In order to ensure a credible and reliable certification process, carbon removal activities should be subject to independent third-party auditing. In particular, carbon removal activities should be subject to an initial certification audit before their implementation, verifying their compliance with the quality criteria set out in this Regulation, including the correct quantification of the expected net carbon removal benefit. Carbon removal activities should also be subject to periodic re-certification audits to verify the compliance of the generated carbon removals. To this end, the Commission should be empowered to adopt implementing acts to set out the structure, technical details, and the minimum information to be contained in the description of the carbon removal activity, and in the certification and re-certification audit reports.

(19) In order to ensure a credible and reliable certification process, carbon removal and carbon farming activities should be subject to independent third-party auditing. In particular, carbon removal and carbon farming activities should be subject to an initial certification audit before their implementation, verifying their compliance with the quality criteria set out in this Regulation, including the correct quantification of the expected net carbon removal benefit. Carbon removal and carbon farming activities should also be subject to periodic re-certification audits to verify the compliance of the generated carbon removals. To this end, the Commission should be empowered to adopt implementing acts to set out the structure, technical details, maximum price for certification audit, and the minimum information to be contained in the description of the carbon removal or carbon farming activity, and in the certification and re-certification audit reports.

~~Amendment 22~~

~~Proposal for a regulation~~

~~Recital 20~~

~~Text proposed by the Commission~~

~~Amendment~~

(20) Providing land managers with improved knowledge, tools and methods for a better assessment and optimisation of the carbon removals is key for cost-efficient implementation of mitigation actions and for securing their engagement in carbon farming. This is particularly relevant for Union small farmers or forest holders that often lack the know-how and the expertise required to implement carbon removal activities and to comply with the required quality criteria and related certification methodologies. Therefore, it is appropriate to require that producer organisations facilitate the provision of relevant advisory services through technical advice to their members. The Common Agricultural Policy and national State aid can support financially the provision of advisory services, knowledge exchange, training, information actions or interactive innovation projects with farmers and foresters.

(20) Providing land managers with improved knowledge, tools and methods for a better assessment and optimisation of the carbon removals and carbon farming activities is key for cost-efficient implementation of mitigation actions and for securing their engagement in carbon farming. This is particularly relevant for Union small farmers or forest holders that often lack the financial resources, know-how and the expertise required to implement carbon removal or carbon farming activities and to comply with the required quality criteria and related certification methodologies. Therefore, it is important to provide the necessary guidelines and financial incentives to enable producer organisations and cooperatives to facilitate the provision of relevant advisory services through technical advice to their members. The Common Agricultural Policy, and national State aid can support financially the provision of advisory services, knowledge exchange, training, information actions or interactive innovation projects with farmers and foresters.

~~Amendment 23~~

~~Proposal for a regulation~~

~~Recital 21~~

~~Text proposed by the Commission~~

~~Amendment~~

(21) It is appropriate that carbon removal certificates underpin different end-uses, such as the compilation of national and corporate greenhouse gas inventories, including with regard to Regulation (EU) 2018/841 of the European Parliament and of the Council31 , the proof of climate-related and other environmental corporate claims (including on biodiversity), or the exchange of verified carbon removal units through voluntary carbon offsetting markets. To this end, the certificate should contain accurate and transparent information on the carbon removal activity, including the total removals and net carbon removal benefit that comply with the quality criteria set out in this Regulation. The Commission should be also empowered to adopt delegated acts to further specify or amend Annex II which lists the minimum information to be contained in the certificates.

(21) It is appropriate that carbon removal and carbon farming certificates underpin different end-uses, such as the compilation of national and corporate greenhouse gas inventories, including with regard to Regulation (EU) 2018/841 of the European Parliament and of the Council31 , the proof of climate-related and other environmental corporate claims (including on biodiversity), or the exchange of verified carbon removal units through voluntary carbon offsetting markets. To this end, the certificate should contain accurate and transparent information on the carbon removal activity, including the total removals and net carbon removal benefit and, in the case of carbon farming, GHG emission reduction, that comply with the quality criteria set out in this Regulation. The Commission should be also empowered to adopt delegated acts to further specify or amend Annex II which lists the minimum information to be contained in the certificates.

~~_________________~~

31 Regulation (EU) 2018/841 of the European Parliament and of the Council of 30 May 2018 on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry in the 2030 climate and energy framework, and amending Regulation (EU) No 525/2013 and Decision No 529/2013/EU (OJ L 156, 19.6.2018, p. 1).

~~Amendment 24~~

~~Proposal for a regulation~~

~~Recital 22~~

~~Text proposed by the Commission~~

~~Amendment~~

(22) To ensure an accurate, robust and transparent verification, certification bodies responsible for performing the certification of carbon removal activities should have the required competences and skills and should be accredited by national accreditation authorities pursuant to Regulation (EC) No 765/2008 of the European Parliament and of the Council32 . To avoid possible conflicts of interest, the certification bodies should also be completely independent from the operator carrying out the carbon removal activity that is subject to the certification. In addition, Member States should contribute towards ensuring the correct implementation of the certification process by supervising the operation of certification bodies that are accredited by national accreditation authorities, and by informing the certification schemes about relevant non-conformity findings.

(22) To ensure an accurate, robust and transparent verification, certification bodies responsible for performing the certification of carbon removal and carbon farming activities should have the required competences and skills and should be accredited by national accreditation authorities pursuant to Regulation (EC) No 765/2008 of the European Parliament and of the Council32. For the purposes of the carbon farming, these national accreditation authorities should be national paying agencies. To avoid possible conflicts of interest, the certification bodies should also be completely independent from the operator carrying out the carbon removal activity or carbon farming that is subject to the certification. In addition, Member States should contribute towards ensuring the correct implementation of the certification process by supervising the operation of certification bodies that are accredited by national accreditation authorities, and by informing the certification schemes about relevant non-conformity findings.

~~_________________~~

32 Regulation (EC) No 765/2008 of the European Parliament and of the Council of 9 July 2008 setting out the requirements for accreditation and market surveillance relating to the marketing of products and repealing Regulation (EEC) No 339/93 (OJ L 218, 13.8.2008, p. 30).

~~Amendment 25~~

~~Proposal for a regulation~~

~~Recital 23~~

~~Text proposed by the Commission~~

~~Amendment~~

(23) Certification schemes should be used by operators to demonstrate compliance with this Regulation. Therefore, certification schemes should operate on the basis of reliable and transparent rules and procedures and should ensure accuracy, reliability, integrity and non-repudiation of origin, and protection against fraud of information and of data submitted by operators. They should also ensure the correct accounting of the verified carbon removal, carbon farming removal, or GHG reduction units, generated by a certified activity notably by avoiding double counting. While a carbon removal unit and a carbon farming removal unit are equal in terms of the number of tonnes of carbon removed and in quality criteria, as set out in the certification methodology, they differ in terms of the length of validity of the unit, owing to the difference in permanence of the carbon stored. To this end, the Commission should be empowered to adopt implementing acts, including adequate standards of reliability, transparency, accounting and of independent auditing to be applied by certification schemes, so as to ensure the necessary legal certainty as regards the rules applicable to operators and to certification schemes. When it comes to carbon farming, for the purposes of preventing double counting, all necessary information on the carbon farming certificates should be available in the Land Parcel Identification System (LPIS) system, linked to the specific parcels benefitting from the scheme. To ensure a cost-effective certification process, those technical harmonised rules on certification should also have the objective of reducing unnecessary administrative and financial burden for operators, or group of operators, in particular for Small and Medium Enterprises (SMEs), including small farmers and foresters

~~Amendment 26~~

~~Proposal for a regulation~~

~~Recital 26~~

~~Text proposed by the Commission~~

~~Amendment~~

(26) Certification schemes should establish and maintain interoperable public registries in order to ensure transparency and full traceability of carbon removal certificates, and to avoid the risk of fraud and double counting. Fraud may occur if more than one certificate is issued for the same carbon removal activity because the activity has been registered under two different certification schemes or has been registered twice under the same scheme. Fraud may also occur when the same certificate is used several times to make the same claim based on a carbon removal activity or a carbon removal unit. The registries should store the documents resulting from the certification process of carbon removals, including summaries of certification audits and re-certification audit reports, the certificates and updated certificates, and make them publicly available in electronic form. The registries should also record the certified carbon removal units that meet the Union quality criteria. In order to ensure a level playing field within the single market, the Commission should be empowered to adopt implementing rules setting out standards and technical rules on the functioning and the inter-operability of those registries.

(26) Certification schemes should establish and maintain interoperable public registries in order to ensure transparency and full traceability of carbon removal and carbon farming certificates, and to avoid the risk of fraud and double counting. Fraud may occur if more than one certificate is issued for the same carbon removal activity because the activity has been registered under two different certification schemes or has been registered twice under the same scheme. The Commission should also set up a centralised Union registry that contains in a fully publicly accessible manner all the relevant information. All information in this central registry shall be easy to navigate and search. Certification schemes should provide to the Commission all information required to be stored and made publicly available in electronic form in the Union registry. For the purposes of preventing fraud when it comes to carbon farming, parcels in the Land Parcel Identification System (LPIS) system already linked to an existing carbon farming scheme not compliant with this Regulation should not be deemed eligible for certification under this Regulation. Fraud may also occur when the same certificate is used several times to make the same claim based on a carbon removal activity or a carbon removal unit. The registries should store the documents resulting from the certification process of carbon removals, including summaries of certification audits and re-certification audit reports, the certificates and updated certificates, and make them publicly available in electronic form. The registries should also record the certified carbon removal units that meet the Union quality criteria. In order to ensure a level playing field within the single market, the Commission should be empowered to adopt implementing rules setting out standards and technical rules on the functioning and the inter-operability of those registries.

~~Amendment 27~~

~~Proposal for a regulation~~

~~Recital 28~~

~~Text proposed by the Commission~~

~~Amendment~~

(28) To enable operators to apply the quality criteria set out in this Regulation in a standardised and cost-effective way, while taking into account the specific characteristics of different carbon removal activities, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to supplement this Regulation by establishing detailed certification methodologies for different types of carbon removal activities. The Commission should also be able to amend Annex II listing the minimum information to be contained in the certificates. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making34 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(28) To enable operators to apply the quality criteria set out in this Regulation in a standardised and cost-effective way, while taking into account the specific characteristics of different carbon removal activities, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission to supplement this Regulation by establishing detailed certification methodologies for different types of carbon removal activities. The Commission should also be able to amend Annex II listing the minimum information to be contained in the certificates. It is of particular importance that the Commission carry out appropriate public consultations during its preparatory work, including at expert level, and including a call for evidence and feedback, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making34 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to and at least a consultative role in, meetings of Commission expert groups dealing with the preparation of delegated acts.

~~_________________~~

~~34 OJ L 123, 12.5.2016, p. 1~~

~~Amendment 28~~

~~Proposal for a regulation~~

~~Article 1 – paragraph 1 – introductory part~~

~~Text proposed by the Commission~~

~~Amendment~~

1. The objective of this Regulation is to facilitate the deployment of carbon removals by operators or groups of operators. To that end, this Regulation establishes a voluntary Union framework for the certification of carbon removals by laying down:

1. The objective of this Regulation is to facilitate and support the deployment of carbon removals and carbon farming by operators or groups of operators while ensuring the commitment to greenhouse gas emissions reductions required pursuant to Article 4(1) of Regulation (EU) 2021/1119. To that end, this Regulation establishes a voluntary Union framework for the certification of carbon removals and carbon farming by laying down:

~~Amendment 29~~

~~Proposal for a regulation~~

~~Article 1 – paragraph 1 – point a~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(a) quality criteria for carbon removal activities that take place in the Union;~~

~~(a) quality criteria for carbon removal and carbon farming activities that take place in the Union;~~

~~Amendment 30~~

~~Proposal for a regulation~~

~~Article 1 – paragraph 1 – point b~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(b) rules for the verification and certification of carbon removals;~~

~~(b) rules for monitoring, liability, verification and certification of carbon removals and carbon farming;~~

~~Amendment 31~~

~~Proposal for a regulation~~

~~Article 1 – paragraph 1 – point c a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(ca) transition rules for the end use of certified units~~

~~Amendment 32~~

~~Proposal for a regulation~~

~~Article 1 – paragraph 2~~

~~Text proposed by the Commission~~

~~Amendment~~

2. This voluntary Union framework for the certification of carbon removals does not apply to emissions falling within the scope of Directive 2003/87/EC, with the exception of the storage of carbon dioxide emissions from sustainable biomass that are zero-rated in accordance with Annex IV thereto.

2. This voluntary Union framework for the certification of carbon removals and carbon farming does not apply to emissions falling within the scope of Directive 2003/87/EC, with the exception of the storage of carbon dioxide emissions from sustainable biomass that are zero-rated in accordance with Annex IV thereto.

~~Amendment 33~~

~~Proposal for a regulation~~

~~Article 1 a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~Article1a~~

~~Transition rules for the end use of certified units~~

Until the entry into force of EU-wide rules on green claims, an undertaking, as defined in article 1 (a) of Directive 2013/34/EU, may use the units certified under this Regulation for voluntary climate claims only if this neither impedes nor reduces the achievement of its GHG emission reduction targets, in compliance with the EU sustainability reporting standards adopted pursuant to Article 29b of Directive 2013/34/EU.

~~Amendment 34~~

~~Proposal for a regulation~~

~~Article 2 – paragraph 1 – point a~~

~~Text proposed by the Commission~~

~~Amendment~~

(a) ‘carbon removal’ means either the storage of atmospheric or biogenic carbon within geological carbon pools, biogenic carbon pools, long-lasting products and materials, and the marine environment, or the reduction of carbon release from a biogenic carbon pool to the atmosphere;

(a) ‘carbon removal’ means either the storage of atmospheric or biogenic carbon within litospheric carbon pools, biogenic carbon pools, long-lasting products and materials, and the marine environment;

~~Amendment 35~~

~~Proposal for a regulation~~

~~Article 2 – paragraph 1 – point b~~

~~Text proposed by the Commission~~

~~Amendment~~

(b) ‘carbon removal activity’ means one or more practices or processes carried out by an operator resulting in permanent carbon storage, enhancing carbon capture in a biogenic carbon pool, reducing the release of carbon from a biogenic carbon pool to the atmosphere, or storing atmospheric or biogenic carbon in long-lasting products or materials;

(b) ‘carbon removal activity’ means one or more practices or processes carried out by an operator resulting in permanent carbon storage, enhancing carbon capture in a biogenic carbon pool, or storing atmospheric or biogenic carbon in long-lasting products or materials;

~~Amendment 36~~

~~Proposal for a regulation~~

~~Article 2 – paragraph 1 – point c a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

(ca) ‘GHG emission reduction’ means the reduction of GHG emissions release from a biogenic carbon pool to the atmosphere and the reduction linked to land or coastal management, forest management, farming practices and animal husbandry practices’;

~~Amendment 37~~

~~Proposal for a regulation~~

~~Article 2 – paragraph 1 – point d~~

~~Text proposed by the Commission~~

~~Amendment~~

(d) ‘operator’ means any legal or physical person who operates or controls a carbon removal activity, or to whom decisive economic power over the technical functioning of the activity has been delegated;

(d) ‘operator’ means any legal or physical person who operates or controls a carbon removal or carbon farming activity, or to whom decisive economic power over the technical functioning of the activity has been delegated; for the purposes of carbon farming activity an operator is a farmer as defined in Article 3(1) of Regulation 22215/2021 or a forest owner or manager as defined by national legislation who can demonstrate long term control of the land. In cases of tenancy, the manager of the land doing the work shall receive the financial benefits or reward arising from the scheme, not the land owner;

~~Amendment 38~~

~~Proposal for a regulation~~

~~Article 2 – paragraph 1 – point e~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(e) ‘group of operators’ means a legal entity that represents more than one operator and is responsible for ensuring that those operators comply with this Regulation;~~

(e) ‘group of operators’ means a legal entity that represents more than one operator and is responsible for ensuring that those operators comply with this Regulation. For carbon farming, group of operators means a legal entity that represents more than one farmer, forest owner or manager or collectivities or cooperatives;

~~Amendment 39~~

~~Proposal for a regulation~~

~~Article 2 – paragraph 1 – point f~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(f) ‘monitoring period’ means a period, the duration of which is determined in accordance to the type of carbon removal activity, over which the storage of carbon is monitored by the operator;~~

(f) ‘monitoring period’ means a period, the duration of which is determined in accordance to the type of carbon removal or carbon farming activity, over which the storage of carbon is monitored by the operator, or group of operators;

~~Amendment 40~~

~~Proposal for a regulation~~

~~Article 2 – paragraph 1 – point g~~

~~Text proposed by the Commission~~

~~Amendment~~

(g) ‘permanent carbon storage’ means a carbon removal activity that, under normal circumstances and using appropriate management practices, stores atmospheric or biogenic carbon for several centuries, including bioenergy with carbon capture and storage and direct air carbon capture and storage;

(g) ‘permanent carbon storage’ means a carbon removal activity that, under normal circumstances and using appropriate management practices, stores atmospheric or biogenic carbon for a significant period of time, including bioenergy with carbon capture and storage, biochar and direct air carbon capture and storage;

~~Amendment 41~~

~~Proposal for a regulation~~

~~Article 2 – paragraph 1 – point h~~

~~Text proposed by the Commission~~

~~Amendment~~

(h) ‘carbon farming’ means a carbon removal activity related to land management that results in the increase of carbon storage in living biomass, dead organic matter and soils by enhancing carbon capture and/or reducing the release of carbon to the atmosphere;

(h) ‘carbon farming’ means a carbon removal and GHG emission reduction activity related to farm practices, coastal or land management, agriculture, animal husbandry or forestry management that results in the increase of carbon storage in living biomass, dead organic matter and soils by enhancing carbon capture and/or reducing the release of carbon and other GHG emissions to the atmosphere through improved land, coastal, forestry, animal husbandry management and farm practices;

~~Amendment 42~~

~~Proposal for a regulation~~

~~Article 2 – paragraph 1 – point h a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

(ha) ‘carbon farming storage’ means a carbon farming activity that stores atmospheric and biogenic carbon in living biomass, biochar, soils and dead organic matter as defined per carbon farming activity in the certification methodology;

~~Amendment 43~~

~~Proposal for a regulation~~

~~Article 2 – paragraph 1 – point i~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(i) ‘carbon storage in products’ means a carbon removal activity that stores atmospheric and biogenic carbon in long-lasting products or materials;~~

~~(i) ‘carbon storage in products’ means a carbon removal or carbon farming activity that stores atmospheric and biogenic carbon in long-lasting products or materials;~~

~~Amendment 44~~

~~Proposal for a regulation~~

~~Article 2 – paragraph 1 – point k~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(k) ‘certification scheme’ means a scheme managed by a private or public organisation that oversees the certification of compliance of operators or group of operators with this Regulation;~~

(k) ‘certification scheme’ means an initiative, composed of set of commitments, managed by a private or public organisation that oversees the certification of compliance of operators or group of operators with this Regulation;

~~Amendment 45~~

~~Proposal for a regulation~~

~~Article 2 – paragraph 1 – point o a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(oa) ‘carbon farming removal unit’ means one tonne of certified net carbon removal benefit generated by a carbon farming activity and registered by a certification scheme.~~

~~Amendment 46~~

~~Proposal for a regulation~~

~~Article 2 – paragraph 1 – point o a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(oa) ‘reversal’ means any release of removed, stored and certified carbon that occurs during the monitoring period.~~

~~Amendment 47~~

~~Proposal for a regulation~~

~~Article 2 – paragraph 1 – point o b (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

(ob) ‘GHG emission reduction unit” means one tonne of CO2 or CO2 equivalent certified net GHG emission reduction benefit generated by carbon farming activity and registered by a certification scheme.

~~Amendment 48~~

~~Proposal for a regulation~~

~~Article 2 – paragraph 1 – point o c (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(oc) ‘biochar’ means a stable, porous, carbonaceous material produced through the pyrolytic treatment of organic feedstocks.~~

~~Amendment 49~~

~~Proposal for a regulation~~

~~Article 3 – paragraph 1 – introductory part~~

~~Text proposed by the Commission~~

~~Amendment~~

~~Carbon removals shall be eligible for certification under this Regulation where they meet both of the following conditions:~~

~~Carbon removals and carbon farming shall be eligible for certification under this Regulation where they meet both of the following conditions:~~

~~Amendment 50~~

~~Proposal for a regulation~~

~~Article 3 – paragraph 1 – point a~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(a) they are generated from a carbon removal activity that complies with the quality criteria set out in Articles 4 to 7;~~

~~(a) they are generated from a carbon removal or carbon farming activity that complies with the quality criteria set out in Articles 4 to 7;~~

~~Amendment 51~~

~~Proposal for a regulation~~

~~Article 4 – paragraph 1 – subparagraph 2 – point c~~

~~Text proposed by the Commission~~

~~Amendment~~

(c) GHGincrease is the increase in direct and indirect greenhouse gas emissions, other than those from biogenic carbon pools in the case of carbon farming, which are due to the implementation of the carbon removal activity.

~~(c) GHGincrease is the increase in direct and indirect greenhouse gas emissions, which are due to the implementation of the carbon removal activity.~~

~~Amendment 52~~

~~Proposal for a regulation~~

~~Article 4 – paragraph 2~~

~~Text proposed by the Commission~~

~~Amendment~~

~~2. In the case of carbon farming, CRbaseline and CRtotal shall be understood as net greenhouse gas removals or emissions in accordance with the accounting rules laid down in Regulation (EU) 2018/841.~~

~~2. In the case of carbon farming, the net carbon farming benefit shall be understood as net carbon removal benefit plus a net GHG reduction benefit and shall be quantified by the following formula:~~

~~Amendment 53~~

~~Proposal for a regulation~~

~~Article 4 – paragraph 2 – subparagraph 1 (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~Net carbon farming benefit = [[CRbaseline – CRtotal - GHGincrease] > 0] + [[GHGbaseline - GHGreduction] > 0] where:~~

~~Amendment 54~~

~~Proposal for a regulation~~

~~Article 4 – paragraph 2 – point a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

(a) CRbaseline is the carbon removals under the baseline;

~~Amendment 55~~

(b) CRtotal is the total carbon removals of the ▌ activity;

~~Proposal for a regulation~~

(c) GHGassociated is the increase in direct and indirect greenhouse gas emissions, over the entire lifecycle of the activity which are due to its implementation, including indirect land use change, calculated, where applicable, in accordance with protocols set forth in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories and any further refinement.

~~Article 4 – paragraph 2 – point b (new)~~

2. A carbon farming activity shall provide a temporary net carbon removal benefit or a net soil emission reduction benefit, which shall be quantified using the following formulas:

~~Text proposed by the Commission~~

(2.1) Temporary net carbon removal benefit = CRbaseline – CRtotal – GHGassociated > 0,

~~Amendment~~

where:

~~(b) CRtotalis the total carbon removals of the carbon farming activity;~~

(a) CRbaseline is the carbon removal under the baseline,

~~Amendment 56~~

(b) CRtotal is the total carbon removal of the activity,

~~Proposal for a regulation~~

~~Article 4 – paragraph 2 – point c (new)~~

(2.2) Net soil emission reduction benefit = LSEbaseline – LSEtotal + ASEbaseline – ASEtotal – GHGassociated > 0

~~Text proposed by the Commission~~

where:

~~Amendment~~

(a) LSEbaseline are the LULUCF soil emissions under the baseline;

(b) LSEtotal are the total LULUCF soil emissions of the activity;

~~Amendment 57~~

~~Proposal for a regulation~~

(d) ASEtotal are the total agricultural soil emissions of the activity;

~~Article 4 – paragraph 2 – point d (new)~~

▌

~~Text proposed by the Commission~~

▌

~~Amendment~~

(g) GHGassociated is the increase in direct and indirect greenhouse gas emissions, over the entire lifecycle of the activity which are due to its implementation, including indirect land use change, calculated, where applicable, in accordance with protocols set forth in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories and any further refinement.

~~(d) GHG total is the release of direct and indirect GHG emissions accounted for in CO2 or CO2 equivalent, achieved through the implementation of the carbon farming activity.~~

The scope of the quantities referred to in CRbaseline and CRtotal corresponds to the net greenhouse gas removals included in the scope of Regulation (EU) 2018/841.

~~Amendment 58~~

The scope of the quantities referred to LSEbaseline and LSEtotal corresponds to the net greenhouse gas emissions from biogenic carbon pools as set out in points (e) and (f) of Section B of Annex I toRegulation (EU) 2018/841.

~~Proposal for a regulation~~

The scope of quantities ASEbaseline and ASEtotal corresponds to emissions from the IPCC source category 3D (agricultural soils). The relevant methodologies shall require a breakdown by greenhouse gas of all quantities referred to in points (a) to (j) of this paragraph.

~~Article 4 – paragraph 2 – point e (new)~~

If soil emissions increase as a result of an activity that results in temporary carbon removal from carbon farming, they are quantified and accounted for into the net carbon removal benefit. In particular, emissions from biogenic carbon pools as set out in points (e) to (f) of Section B of Annex I to Regulation (EU) 2018/841 are quantified and reported as part of CRtotal and emissions from the IPCC source category 3D (agricultural soils) are quantified and reported as GHGassociated. If some soil emissions decrease as a result of an activity that results in temporary carbon removal from carbon farming, they should be quantified, reported and accounted for as net soil emissions reduction benefit.

~~Text proposed by the Commission~~

Where an activity results in both a temporary net carbon removal benefit and a net soil emission reduction benefit, the relevant methodology shall specify the allocation rules for the associated direct and indirect GHG emissions which are attributable to the implementation of the activity.

~~Amendment~~

▌

~~(e) GHGbaseline is the release of direct and indirect GHG emissions of the activity site.~~

2a. A carbon storage in products activity shall provide a temporary net carbon removal benefit, which shall be quantified using the following formula:

~~Amendment 59~~

Temporary net carbon removal benefit = CRbaseline – CRtotal – GHGassociated > 0

~~Proposal for a regulation~~

(a) CRbaseline is the carbon removed under the baseline;

~~Article 4 – paragraph 2 a (new)~~

(b) CRtotal is the total carbon removals of the carbon storage in products activity;

~~Text proposed by the Commission~~

~~Amendment~~

3. Quantities referred to in paragraph 1, points (a), (b) and (c), and in paragraph 1a, points (a) – (h), shall be designated with a negative sign (-) if they are net GHG removals and with a positive sign (+) if they are net GHG emissions ▌ ; they shall be expressed in tonnes of CO2 equivalent.

~~2a. In this case, CRbaseline and CRtotal shall be understood as net greenhouse gas removals or emissions in accordance with the accounting rules laid down in Regulation (EU) 2018/841.~~

4. Permanent carbon removals, temporary carbon removals from carbon farming and carbon storage in products, soil emission reductions and associated GHG emissions shall be quantified in a relevant, conservative, accurate, complete, consistent, comparable and transparent manner, in accordance with the latest available scientific evidence. The monitoring shall be based on an appropriate combination of on-site measurements with remote sensing or modelling according to the rules set out in the appropriate certification methodologies.

~~Amendment 60~~

5. The baselines shall be highly representative of the standard ▌ performance of comparable practices and processes in similar social, economic, environmental, technological and regulatory circumstances and take into account the geographical context including local pedo-climatic and regulatory conditions (‘standardised baselines’).

~~Proposal for a regulation~~

5a. The standardised baselines shall be established by the Commission in the certification methodologies set out in the delegated acts adopted pursuant to Article 8. The Commission shall review at least every five years and update, as appropriate, the standardised baselines in light of evolving regulatory circumstances and of the latest available scientific evidence. The updated standardised baselines shall apply only to activities for which the activity period starts after the entry into force of the applicable certification methodology.

~~Article 4 – paragraph 3~~

▌

~~Text proposed by the Commission~~

6. By way of derogation from paragraph 5, where duly justified in the applicable certification methodology, including due to the lack of data or the absence of sufficient comparable activities, an operator shall use a baseline that corresponds to the individual, performance of a specific activity (‘activity-specific baseline’).

~~Amendment~~

7. The activity-specific baselines shall be periodically updated, at the beginning of each activity period, unless otherwise stated in the applicable certification methodologies set out in the delegated acts adopted pursuant to Article 8.

3. Quantities referred to in paragraph 1, points (a), (b) and (c), shall be designated with a negative sign (-) if they are net greenhouse gas removals and with a positive sign (+) if they are net greenhouse gas emissions ; they shall be expressed in tonnes of carbon dioxide equivalent.

8. The quantification of permanent carbon removals, temporary carbon removals from carbon farming and carbon storage in products, and soil emission reductions shall account for uncertainties in a conservative manner and in accordance with recognised statistical approaches. Uncertainties in the quantification of carbon removals and soil emission reductions shall be duly reported.

3. Quantities referred to in paragraph 1, points (a), (b) and (c), and paragraph 2, points (a), (b), (c) and (d) (e) shall be designated with a negative sign (-) if they are net greenhouse gas removals or, in the case of carbon farming, reductions and with a positive sign (+) if they are net greenhouse gas emissions ; they shall be expressed in tonnes of carbon dioxide equivalent.

9. To support the quantification of temporary carbon removals and soil emission reductions generated by carbon farming activity, the operator or group of operators shall, where feasible, gather data on carbon removals and GHG emissions based on the use of Tier 3 methodologies in accordance with the 2006 IPCC guidelines for National Greenhouse Gas inventories and their refinements, and in a manner compatible with national GHG inventories under Regulation (EU) 2018/841 and Part 3 of Annex V to Regulation (EU) 2018/1999.

~~Amendment 61~~

Article 5

~~Proposal for a regulation~~

Additionality

~~Article 4 – paragraph 4~~

1. Any activity shall be additional. To that end, it shall meet both of the following criteria:

~~Text proposed by the Commission~~

(a) it goes beyond Union and national statutory requirements at the level of an individual operator;

~~Amendment~~

(b) ▌ the incentive effect of the certification is needed for the activity to become financially viable.

~~4. Carbon removals shall be quantified in a relevant, accurate, complete, consistent, comparable and transparent manner.~~

2. Where the standardised baseline ▌ established pursuant to Article 4(5) or (5a) is used, additionality as referred to in paragraph 1 is considered to be complied with. Where the activity-specific baseline is used, additionality as referred to in paragraph 1, points (a) and (b), shall be demonstrated through specific additionality tests in accordance with the applicable certification methodologies set out in the delegated acts adopted pursuant to Article 8.

~~4. Carbon removals shall be quantified in a relevant, accurate, evidence-based, robust, consistent, comparable and transparent manner, based on valid criteria and on uniform level across EU.~~

Article 6

~~Amendment 62~~

Storage, monitoring and liability

~~Proposal for a regulation~~

1. An operator or group of operators shall demonstrate that an activity stores the carbon permanently or aims to store the carbon over the long-term.

~~Article 4 – paragraph 4 a (new)~~

▌

~~Text proposed by the Commission~~

▌

~~Amendment~~

▌

~~4 a. All verified carbon farming certification schemes should be advanced in a timely manner, with no priority given to any particular methodology or sector.~~

▌

~~Amendment 63~~

2. For the purposes of paragraph 1, an operator or group of operators shall comply with both of the following criteria:

~~Proposal for a regulation~~

(a) they shall be subject to rules to monitor and mitigate any identified risks of reversal occurring during the monitoring period;

~~Article 4 – paragraph 5~~

(b) they shall be liable to address any reversal of the carbon captured and stored by an activity, occurring during the monitoring period, through appropriate liability mechanisms as set out in the delegated acts adopted pursuant to Article 8.

~~Text proposed by the Commission~~

(2a) The monitoring rules referred to in paragraph 2, point (a), shall:

~~Amendment~~

(a) for permanent carbon removal, be consistent with the monitoring rules set out in Articles 13 to 16 of Directive 2009/31/EC;

5. The baseline shall correspond to the standard carbon removal performance of comparable activities in similar social, economic, environmental and technological circumstances and take into account the geographical context.

(b) for carbon permanently chemically bound in products, be consistent with the rules for permanently chemically bound adopted pursuant to Article 12(3b) of Directive 2003/87/EC;

5. The baseline shall correspond to carbon removal or, in the case of carbon farming, GHG emissions performance of common current practices of comparable activities in similar social, economic, environmental and technological circumstances and take into account the geographical context.

(c) for carbon farming and carbon storage in long lasting products, be set out in accordance with the rules laid down in the certification methodologies set out in the delegated acts adopted pursuant to Article 8.

~~Amendment 64~~

(2b) The liability mechanisms referred to in paragraph 2, point (b), shall:

~~Proposal for a regulation~~

(a) for permanent carbon removal, be consistent with the obligations set out in Articles 17 and 18 of Directive 2009/31/EC;

~~Article 4 – paragraph 5 – subparagraph 1 (new)~~

(b) for carbon permanently chemically bound in products, be consistent with the rules for permanently chemically bound carbon adopted pursuant to Article 12(3b) of Directive 2003/87/EC;

~~Text proposed by the Commission~~

(c) for carbon storage in long lasting products and for carbon farming, be set out and duly justified in the applicable certification methodology and may include up-front insurance or collective buffers.

~~Amendment~~

▌

~~For carbon farming in arable mineral soils, the standardised baseline is fixed, which is equivalent to zero removal.~~

▌

~~Amendment 65~~

▌

~~Proposal for a regulation~~

▌

~~Article 4 – paragraph 6~~

▌

~~Text proposed by the Commission~~

3. The carbon removed and subsequently stored by a carbon removal activity shall be considered released to the atmosphere at the end of the monitoring period, unless that monitoring period is prolonged through a new certification of the activity or the carbon is stored permanently pursuant to paragraph 2a, points (a) and (b), and paragraph 2b, points (a) and (b).

~~Amendment~~

3a. Soil emission reduction activities shall be subject to appropriate monitoring rules and liability mechanisms as set out in the delegated acts adopted pursuant to Article 8.

~~6. By way of derogation from paragraph 5, where duly justified, the baseline may be based on the individual carbon removal performance of that activity.~~

Article 7

6. The baseline may be based on the individual performance of that activity or, in the case of carbon farming GHG reduction activity, on individual assessment of direct and indirect emissions linked to the activity site, or on the verification of actual individual carbon stocks by an independent body.

Sustainability

~~Amendment 66~~

1. An activity shall not significantly harm and may generate co-benefits for one or more of, the following sustainability objectives:

~~Proposal for a regulation~~

(a) climate change mitigation beyond the net carbon removal benefit and net soil emission reduction benefit referred to in Article 4(1) and (1a);

~~Article 4 – paragraph 6 – subparagraph 1 (new)~~

▌

~~Text proposed by the Commission~~

(b) climate change adaptation;

~~Amendment~~

Enhanced carbon farming premium can be achieved by further actions that show improvement in other environmental indicators, such as improved biodiversity or measures that reduce the use of fossil fuels, to be verified by an independent body.

(d) transition to a circular economy, including the efficient use of sustainably sourced bio-based materials;

~~Amendment 67~~

(e) pollution prevention and control;

~~Proposal for a regulation~~

(f) protection and restoration of biodiversity and ecosystems including soil health, as well as avoidance of land degradation.

~~Article 4 – paragraph 7~~

(fa) 1a. A carbon farming activity shall at least generate co-benefits for the sustainability objective referred to in point (f) of this paragraph.

~~Text proposed by the Commission~~

▌

~~Amendment~~

▌

~~7. The baseline shall be periodically updated.~~

2. For the purposes of paragraph 1 of this Article, an activity shall comply with minimum sustainability requirements laid down in the certification methodologies ▌ set out in the delegated acts adopted pursuant to Article 8. The minimum sustainability requirements shall take into account the impacts both within and outside the Union and local conditions. Those minimum sustainability requirements shall, where appropriate, be consistent with the technical screening criteria for the ‘do no significant harm’ principle. The minimum sustainability requirements shall promote the sustainability of forest and agriculture biomass raw material in accordance with the sustainability and GHG saving criteria for biofuels, bioliquids and biomass fuels laid down in Article 29 of Directive (EU) 2018/2001.

~~7. The baseline shall be periodically updated but should stay constant for the operator throughout the monitoring period once a carbon removal or carbon farming activity has started.~~

3. Where an operator or group of operators reports co-benefits that contribute to the sustainability objectives referred to in paragraph 1 of this Article beyond the minimum sustainability requirements referred to in paragraph 2 of this Article, they shall comply with the certification methodologies set out in the delegated acts adopted pursuant to in Article 8. The certification methodologies shall include elements to incentivise as much as possible the generation of co-benefits going beyond the minimum sustainability requirements, in particular for the objective referred to in paragraph 1, point (f), of this Article.

~~Amendment 68~~

▌

~~Proposal for a regulation~~

Article 8

~~Article 4 – paragraph 9~~

Certification methodologies

~~Text proposed by the Commission~~

1. An operator or a group of operators shall apply the relevant certification methodology to comply with the criteria laid down in Articles 4 to 7.

~~Amendment~~

2. The Commission shall adopt delegated acts in accordance with Article 16 to supplement this Regulation by establishing the certification methodologies referred to in paragraph 1 of this Article. Those certification methodologies shall specify, for each activity, the elements set out in Annex I. The Commission shall prioritise the development of certification methodologies for those activities that are the most mature, have the potential to provide the largest co-benefits or where Union legislation relevant for the development of those methodologies has already been adopted. In the case of carbon farming activities, as a part of its prioritisation the Commission shall take into account in addition whether the activities contribute to sustainable management of agricultural land, forests, and the marine environment. In case of carbon storage in products, the Commission shall prioritise methodologies on wood-based and bio-based construction products.

9. To support the quantification of carbon removals generated by carbon farming, the operator or group of operators shall gather data on carbon removals and greenhouse gas emissions in a manner compatible with national greenhouse gas inventories under Regulation (EU) 2018/841 and Part 3 of Annex V to Regulation (EU) 2018/1999.

2a. Delegated acts adopted pursuant to paragraph 2 shall differentiate between activities related to permanent carbon removal, carbon farming and carbon storage in products and further differentiate the activities on the basis of their characteristics. The certification methodologies shall :

9. To support the quantification of carbon removals and GHG emission reduction generated by carbon farming, the operator or group of operators shall gather data on carbon removals and greenhouse gas emissions in a manner compatible with national greenhouse gas inventories under Regulation (EU) 2018/841 and Part 3 of Annex V to Regulation (EU) 2018/1999 with simplified methods for small scale operators, as provided for in Article 8.3.

(a) ensure the robustness and transparency of carbon removals and soil emission reductions;

~~Amendment 69~~

(b) promote the protection and restoration of biodiversity and ecosystems;

~~Proposal for a regulation~~

~~Article 5 – paragraph 1 – point b~~

(d) take into account the competitiveness of farmers and foresters in the Union in a sustainable manner, particularly for small-scale operators;

~~Text proposed by the Commission~~

(e) promote the sustainability of biomass in accordance with the sustainability and GHG emissions saving criteria for biofuels, bioliquids and biomass fuels laid down in Article 29 of Directive (EU) 2018/2001;

~~Amendment~~

(f) ensure the consistency of the application of the principle of the cascading use of biomass as per national authorities in accordance with Article 3(3) of Directive RED III;

~~(b) it takes place due to the incentive effect of the certification.~~

(g) ensure the avoidance of unsustainable demand of biomass raw material;

~~(b) it takes place due to the incentive effect of the certification, creation of carbon removal units and its monetisation.~~

(h) minimise the administrative and financial burden for operators, particularly for small-scale operators, keep the certification process as simple as possible, and easy to use;

~~Amendment 70~~

(i) ensure that cases of reversal are addressed through appropriate liability mechanisms such as collective buffers or up-front insurance mechanisms and as a last resort direct cancellation of units.

~~Proposal for a regulation~~

▌

~~Article 5 – paragraph 1 a (new)~~

▌

~~Text proposed by the Commission~~

3. When preparing the delegated acts referred to in paragraph 2, the Commission shall take into account ▌

~~Amendment~~

▌

~~1a. Carbon farming activity shall be additional. To that end, the carbon farming activity shall meet all of the following criteria:~~

▌

(a) it goes beyond Union and national statutory requirements, in particular, relevant statutory management requirements and GAEC standards established under Chapter I, Section 2 of Regulation (EU) 2021/2115 and relevant minimum requirements for the use of fertiliser and plant protection products, animal welfare, as well as other relevant mandatory requirements established by national and Union law;

▌

~~(b) it takes place due to the incentive effect of the certification and creation of carbon farming removal or [GHG emission reduction] unit and its monetisation.~~

▌

~~Amendment 71~~

▌

~~Proposal for a regulation~~

▌

~~Article 5 – paragraph 2~~

(a) relevant Union and national law; and

~~Text proposed by the Commission~~

(b) relevant Union, national and international certification methodologies and standards.

~~Amendment~~

(ba) best available scientific evidence.

2. Where the baseline is established pursuant to Article 4(5), additionality as referred to in paragraph 1 is considered to be complied with. Where the baseline is established pursuant to Article 4(6), additionality as referred to in paragraph 1, points (a) and (b), shall be demonstrated through specific tests.

▌

2. Where the baseline is established pursuant to Article 4(5), additionality as referred to in paragraph 1 and 1(a) is considered to be complied with. Where the baseline is established pursuant to Article 4(6), additionality as referred to in paragraph 1, points (a) and (b), shall be demonstrated through specific tests.

▌

~~Amendment 72~~

▌

~~Proposal for a regulation~~

Chapter 3 CERTIFICATION

~~Article 6 – paragraph 1~~

Article 9

~~Text proposed by the Commission~~

Certification of compliance

~~Amendment~~

1. To apply for a certification of compliance with this Regulation, an operator or a group of operators shall submit an application to a certification scheme. Upon acceptance of that application, the operator or ▌ group of operators shall submit to a certification body an activity plan that includes evidence of compliance with Articles 4 to 7, the expected net carbon removal benefit or the net soil emission reduction benefit generated by the activity, and a monitoring plan. Groups of operators shall also specify how advisory services are provided, in particular to small-scale carbon farming operators. For carbon farming activities, Member States may provide advice to farmers in the framework of the advisory services referred to in Article 15 of Regulation (EU) 2021/2115. In order to promote the interoperability of relevant databases on carbon farming, where applicable, Member States may include in the Identification system for agricultural parcel, referred to in Article 68 of Regulation (EU) 2021/2116, key information listed in Annex 1, including management practices related to the carbon farming activity, start date and end date of the activity, unique certificate number or code, name of certification body and name of the certification scheme.

~~1. An operator or group of operators shall demonstrate that a carbon removal activity aims at ensuring the long-term storage of carbon.~~

2. The certification scheme shall appoint a certification body which shall conduct a certification audit to verify that the information submitted in accordance with paragraph 1 of this Article is accurate and reliable, and to confirm compliance of ▌ activity with Articles 4 to 7. When, as a result of that certification audit, the compliance of the information submitted in accordance with paragraph 1 of this Article has been verified, the certification body shall issue a certification audit report ▌ that includes a summary ▌ and a certificate of compliance containing, as a minimum, the information set out in Annex II.

1. An operator or group of operators shall undertake to demonstrate that a carbon removal or carbon farming activity aims at ensuring the long-term and, in the case of carbon farming, temporary storage of carbon.

The certification scheme shall review the certification audit report and the certificate of compliance, and make the certification audit report, in full or, where necessary to preserve the confidentiality of commercially sensitive information, in an summarized form, and the certificate of compliance publicly available in the certification registry of the certification scheme or, by [OJ: 4 years after the entry into force of this Regulation], in the Union registry referred to in Article 12.

~~Amendment 73~~

3. The certification body shall carry out regular re-certification audits to reconfirm compliance of the ▌ activity with Articles 4 to 7 and verify the net carbon benefit or the net soil emission reduction benefit generated by the activity. The re-certification audits shall be carried out at least every five years, or more frequently as otherwise specified in the applicable certification methodology, depending on the characteristics of the relevant activity. As a result of that re-certification audit, the certification body shall issue a re-certification audit report ▌ that includes a summary, and an updated certificate of compliance. The certification scheme shall review the re-certification audit report and the updated certificate of compliance, and make the ▌ the re-certification audit report, in full or, where necessary to preserve the confidentiality of commercially sensitive information, in an summarised form, the updated certificate of compliance publicly available in the certification registry of the certification scheme or, by [OJ: 4 years after the entry into force of this Regulation], in the Union registry referred to in Article 12. The certification registry or, by [OJ: 4 years after the entry into force of this Regulation], the Union registry referred to in Article 12 shall issue units based on the updated certificate of compliance resulting from the re-certification audit.

~~Proposal for a regulation~~

4. The operator or ▌ group of operators shall support the certification body during certification, and re-certification audits, notably by giving access to the activity premises and providing any data and documentation required.

~~Article 6 – paragraph 2 – point a~~

5. The Commission shall adopt implementing acts to set out the structure, format, technical details of the activity plan and the monitoring plan referred to in paragraph 1, and of the certification and re-certification audit reports referred to in paragraphs 2 and 3. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17.

~~Text proposed by the Commission~~

Article 10

~~Amendment~~

Certification bodies

~~(a) they shall monitor and mitigate any risk of release of the stored carbon occurring during the monitoring period;~~

1. Certification bodies appointed by certification schemes shall be accredited by a national accreditation body pursuant to Regulation (EC) No 765/2008 or recognised by a national competent authority to cover the scope of this Regulation or the specific scope of the certification scheme.

(a) they shall monitor and mitigate any risk of release of the stored carbon occurring during the monitoring period. For biochar carbon removal, they shall provide sound scientific evidence, that a reversal of a solid form (e.g. carbonates or biochar) of carbon to CO2 is prevented;

2. Certification bodies shall ▌ :

~~Amendment 74~~

(a) be competent to carry out the certification and re-certification audits referred to in Article 9;

~~Proposal for a regulation~~

(b) legally and financially independent from the operators or from a group of operators, and carry out the activities required under this Regulation in the public interest.

~~Article 6 – paragraph 2 – point b~~

~~Text proposed by the Commission~~

3. For the purpose of paragraph 2, point (b), certification bodies or any part thereof shall not:

~~Amendment~~

(a) be an operator or a group of operators, the owner of an operator or of a group of operators, or be owned by them;

~~(b) they shall be subject to appropriate liability mechanisms in order to address any release of the stored carbon occurring during the monitoring period.~~

(b) have relations with operators or with a group of operators, that could affect their independence and impartiality.

(b) they shall be subject to appropriate liability mechanisms, such as, for carbon farming, a percentage of credits to be put in a pool managed by the certification scheme, to be further defined in a delegated act, in order to address any release of the stored carbon occurring during the monitoring period with the exception of where force majeure applies. Such circumstances may be protected through a mutual fund or insurance mechanism.

4. Member States shall supervise the operation of certification bodies. Certification bodies shall submit, upon request by the national competent authorities, all relevant information necessary to supervise their operation, including date, time and location of the audits referred to in Article 9. Where Member States find issues of non-conformity, they shall inform the certification body and the relevant certification scheme thereof without delay. The notice on non-conformity shall be published in the certification registry, and where applicable on the common registry referred to in Article 12.

~~Amendment 75~~

Chapter 4 CERTIFICATION SCHEMES

~~Proposal for a regulation~~

Article 11

~~Article 6 – paragraph 3~~

Operation of certification schemes

~~Text proposed by the Commission~~

1. To demonstrate compliance with this Regulation, an operator or a group of operators shall participate in a certification scheme recognised by the Commission pursuant to Article 13.

~~Amendment~~

2. Certification schemes shall operate in an independent manner on the basis of reliable and transparent rules and procedures, in particular with regard to internal management and monitoring, handling of complaints and appeals, stakeholder consultation, transparency and publication of information, appointment and training of certification bodies, addressing non-conformity issues, development and management of certification registries. Certification schemes shall make their fees transparent and easily accessible to operators, including by publishing them on their websites. For the purpose of handling complaints and appeals, certification schemes shall put in place easily accessible complaint and appeal procedures. Those procedures shall be made publicly available in the certification registry and, by [OJ: 4 years after the entry into force of this Regulation], in the Union registry referred to in Article 12.

~~3. For carbon farming and carbon storage in products, the carbon stored by a carbon removal activity shall be considered released to the atmosphere at the end of the monitoring period.~~

3. Certification schemes shall verify if the information and data submitted by the operator or a group of operators for the certification of compliance pursuant to Article 9 were subject to independent auditing and if the certification of compliance, including the re-certification audit reports were carried out in an accurate, reliable, and cost-effective manner.

~~3. For carbon storage in products, the carbon stored by a carbon removal activity shall be considered released to the atmosphere at the end of the monitoring period.~~

4. Certification schemes shall publish in their certification registries or, by [OJ: 4 years after the entry into force of this Regulation] in the Union registry referred to in Article 12, at least annually, a list of the appointed certification bodies, stating for each certification body by which national accreditation body it was accredited or by which national competent authority it was recognized and which national competent authority is monitoring it.

~~Amendment 76~~

5. The Commission shall adopt implementing acts setting out the structure, format, technical details and process referred to in paragraphs 2, 3 and 4 of this Article, which shall apply to all certification schemes recognised by the Commission. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17 ▌.

~~Proposal for a regulation~~

Article 12

~~Article 6 – paragraph 3 – subparagraph 1 (new)~~

Union wide registry for permanent carbon removals, carbon farming and carbon storage in products

~~Text proposed by the Commission~~

-1. By…[OJ: 4 years after the entry into force of this Regulation], the Commission shall establish and duly maintain a Union wide registry for permanent carbon removals, carbon farming and carbon storage in products, to make publicly available the information related to the certification process, in an accessible way, containing, as a minimum, the information set out in Annex IIa, taking into account the reports referred to in Article 30(5a) of Directive 2003/87/EC and Article 17(3) of Regulation (EU) 2018/841 (‘Union registry’). The Union registry shall use automated systems, including electronic templates, to make publicly accessible in a secure way the information related to the certification process, including the certificates of compliance and updated certificates of compliance, to enable the tracing of the quantity of certified units and avoid double counting. The Union registry shall be financed by annual fixed fees payable by users, proportionate to the use of the registry, to sufficiently contribute covering the annual operating costs of establishment and management of the Union registry, such as those for staff or IT tools. Resources from such fees shall constitute external assigned revenue for the purpose of Article 21(5) of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council [add reference in footnote]. That revenue shall, in particular, cover the costs of IT tools, services, security, their operations and licensing systems and the costs of staff working on the management of the Union registry.

~~Amendment~~

-1a. The Commission shall adopt one or more delegated acts in accordance with Article 16 supplementing the provisions of this Article laying down the necessary requirements concerning the Union registry, including rules to ensure sufficient oversight of the trading of certified units, and the factors to be considered for determining the level of fees referred to in paragraph 3 of this Article and their recovery. During each last quarter of the year preceding the calendar year of application, the Commission shall adopt one or more implementing acts to set out or revise the individual amounts of the fees referred to in paragraph 1b of this Article, to be applied for that calendar year.

~~For biochar use, this provision does not apply if the carbon is bound permanently in a mineral matrix (concrete) or in soil from which it cannot be separated or released.~~

1. Until the establishment of the Union registry, a certification scheme shall establish and duly maintain a public certification registry to make publicly accessible and in a secure way the information resulting from the certification process, including the certificates of compliance and updated certificates of compliance, containing, as a minimum, the information set out in Annex IIa, to enable the tracing of the quantity of units certified in accordance with Article 9 (‘certification registry’). A certification registry shall use automated systems, including electronic templates, and shall be interoperable with registries of other recognised certification schemes in order to avoid double counting. The Commission shall adopt implementing acts setting out the structure, format, and technical details of the certification registries, of the recording, holding or use of certified units, including as referred to in paragraph 1 of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17.

For carbon farming, the carbon stored shall be considered released to the atmosphere at the end of the permanence assessment period included in the certification methodology, provided the minimum monitoring period is respected, unless the operator or the group of operators renew the period by proving the continued and uninterrupted maintenance of carbon farming activity and monitoring or a carbon removal portfolio manager takes over liability and ensures, as part of portfolio-wide monitoring, uninterrupted continuation of the monitoring after the end of the monitoring period.

1a. Certified units shall be issued by certification registries or, by [OJ: 4 years after the entry into force of this Regulation], by the Union registry referred to in the first paragraph of this Article, only after the generation of a net carbon removal benefit or net soil emission reduction benefit, based on a valid certificate of compliance resulting from a re-certification audit.

Where public policy, in the public interest, mandates farmers to conduct an activity that reduces their carbon stocks, the farmer will not be held liable for the impact on carbon stocks of such required activities.

Any certified unit shall not be issued more than once and shall not be used by more than one legal or natural person at any point in time.

~~Preventive reinforcement activities that avoid natural carbon leakage should be encouraged.~~

Permanent carbon removal units, carbon farming sequestration units and carbon storage in products units, and soil emission reduction units shall remain distinct from each other.

~~Amendment 77~~

1b. Carbon farming sequestration unit and carbon storage in product units shall expire at the end of the monitoring period of the relevant activity, and be cancelled from the certification registry or, by [OJ: 4 years after the entry into force of this Regulation], the Union registry, unless the long-term storage of the removed carbon is proven through continued monitoring, according to the rules set out in the applicable certification methodology.

~~Proposal for a regulation~~

▌

~~Article 7 – paragraph 1 – introductory part~~

▌

~~Text proposed by the Commission~~

▌

~~Amendment~~

Article 13

~~1. A carbon removal activity shall have a neutral impact on or generate co-benefits for all the following sustainability objectives:~~

Recognition of certification schemes

~~1. A permanent carbon removal activity shall have a neutral impact or generate co-benefits for all the following sustainability objectives:~~

1. Only a certification scheme recognised by the Commission by means of a decision may be used by operators or groups of operators to demonstrate compliance with this Regulation. Such decision shall be valid for a period of no more than 5 years and shall be made public in the Union registry referred to in Article 12.

~~Amendment 78~~

2. A Member State shall notify to the Commission the application for recognition of the public certification scheme. The legal representative of a private certification scheme shall notify to the Commission the application for recognition of the private certification scheme.

~~Proposal for a regulation~~

3. The Commission may, after appropriate consultation with the certification scheme, repeal a decision recognising a certification scheme pursuant to paragraph 1 where the certification scheme fails to implement the standards and rules set out in the implementing acts referred to in Article 11(5). Where a Member State or any other interested party raises duly substantiated concerns that a certification scheme does not operate in accordance with the standards and rules set out in the implementing acts referred to in Article 11(5) that constitute the basis for decisions under paragraph 1, the Commission shall investigate the matter and take appropriate action, including repealing the relevant decision.

~~Article 7 – paragraph 1 – point d~~

4. The Commission shall adopt implementing acts setting out the structure, format, and technical details of the notification and recognition processes referred to in paragraphs 1 and 2. ▌

~~Text proposed by the Commission~~

Article 14

~~Amendment~~

Reporting requirements

~~(d) transition to a circular economy;~~

1. Each certification scheme recognised by the Commission shall submit to the Commission an annual report about its operations, including a description of any cases of fraud and related remediation measures. The report shall be submitted annually by 30 April, covering the preceding calendar year. The requirement to submit a report shall apply only to certification schemes that have operated for at least 12 months.

~~(d) transition to a circular biobased economy and access to renewable raw materials;~~

2. The Commission shall make those reports publicly available, in full or, where necessary to preserve the confidentiality of commercially sensitive information, in an aggregated form.

~~Amendment 79~~

3. The Commission shall adopt implementing acts setting out the structure, format, and technical details of the reports referred to in paragraph 1 of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17.

~~Proposal for a regulation~~

▌

~~Article 7 – paragraph 1 – point f a (new)~~

▌

~~Text proposed by the Commission~~

Chapter 5 FINAL PROVISIONS

~~Amendment~~

Article 15

~~(fa) agricultural productivity including security of agricultural production;~~

Amendment to Annexes

~~Amendment 80~~

1. The Commission is empowered to adopt delegated acts in accordance with Article 16 to amend Annex I in order to adapt it to new and emerging types of activities, and to scientific and technical progress.

~~Proposal for a regulation~~

2. The Commission is empowered to adopt delegated acts in accordance with Article 16 to amend Annex II in order to adapt the list of minimum information included in the certificates referred to in Article 9 to technical progress.

~~Article 7 – paragraph 1 – point f b (new)~~

Article 16

~~Text proposed by the Commission~~

Exercise of delegation

~~Amendment~~

1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

~~(fb) quality of agricultural produce;~~

2. The power to adopt delegated acts referred to in Articles 8, 12 and 15 shall be conferred on the Commission for an indeterminate period of time from [OJ: date of entry into force of this Regulation].

~~Amendment 81~~

3. The delegation of power referred to in Articles 8, 12 and 15 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

~~Proposal for a regulation~~

4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Inter-institutional Agreement of 13 April 2016 on Better Law-Making.

~~Article 7 – paragraph 1 – point f c (new)~~

4a. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

~~Text proposed by the Commission~~

5. Delegated acts adopted pursuant to Articles 8, 12 and 15 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of 2 months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by 2 months at the initiative of the European Parliament or of the Council.

~~Amendment~~

Article 17

~~(fc) farmers income or the economic result of the farm operation;~~

Committee procedure

~~Amendment 82~~

1. The Commission shall be assisted by the Climate Change Committee established by Article 44(1), point (a), of Regulation (EU) 2018/1999. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

~~Proposal for a regulation~~

2. Where reference is made to this Article, Article 5 of Regulation (EU) No 182/2011 shall apply.

~~Article 7 – paragraph 1 – point f d (new)~~

Article 18

~~Text proposed by the Commission~~

Review

~~Amendment~~

1. This Regulation shall be kept under review in all aspects, taking into account

~~(fd) food security and availability.~~

a) relevant developments concerning Union legislation, including its coherence with Directive 2003/87/EC and Directive (EU) 2018/2001, Regulation (EU) 2021/1119, and Regulation (EU) 2018/842 and Regulation (EU) 2018/841;

~~Amendment 83~~

b) the relevant developments concerning the United Nations Framework Convention on Climate Change and the Paris Agreement, including rules and guidelines related to the implementation of article 6;

~~Proposal for a regulation~~

c) technological and scientific progress, best practices and market developments in the field of carbon removals;

~~Article 7 – paragraph 1 a (new)~~

d) the potential for permanent carbon storage in third countries, subject to international agreements referred to in Chapter III of [NZIA], while providing for equivalent conditions to those laid out in the CCS directive to ensure permanently secure and environmentally safe geological storage of captured CO2;

~~Text proposed by the Commission~~

e) the environmental impacts of increased biomass use resulting from this Regulation, including impacts on land degradation and ecosystem restoration;

~~Amendment~~

f) the impacts on Union food security and land speculation; and the cost of the certification process.

1a. Carbon farming activities shall have a neutral impact on all the following sustainability objectives and shall generate positive co-benefits for at least one of the following sustainability objectives:

2. [Three years after [OJ: date of entry into force of this Regulation] or by 31 December 2028 which ever comes first], and subsequently within six months after the outcome of each global stocktake agreed under Article 14 of the Paris Agreement, the Commission shall report to the European Parliament and to the Council on the implementation of this Regulation.

~~(a) climate change mitigation, including reduction of greenhouse gas emissions from agricultural practices, as well as maintenance of existing carbon stores and enhancement of carbon sequestration;~~

▌

~~(b) climate change adaptation, including actions to improve resilience of food production systems and animal and plant diversity for stronger resistance to diseases and climate change;~~

▌

~~(c) protection or improvement of water quality and reduction of pressure on water resources;~~

1b. By 31 July 2026, the Commission shall review the application of this Regulation to emissions reduction from the IPCC source category of Agriculture, sub-category of 4a enteric fermentation and 4b manure management, as determined pursuant to Regulation (EU) 2018/1999 and the implementing acts adopted pursuant to it, taking into consideration opportunity costs, the evolution of regulatory framework, possible negative effects leading to GHG-emission increase, the Union 2040 climate targets, as proposed in accordance with Article 4(3) of the European Climate law, and present a report to the European Parliament and the Council. This report shall be based, among others, on a pilot certification methodology for activities that reduce agricultural emissions from enteric fermentation and manure management. The Commission shall, where appropriate, present a legislative proposal accompanying the report to extend the scope of the activities covered under this Regulation to emissions reduction from the IPCC source category of Agriculture, sub-category of 4a enteric fermentation and 4b manure management, as determined pursuant to Regulation (EU) 2018/1999.

~~(d) transition to biobased circular economy;~~

1c. By 31 July 2026, the Commission shall assess additional requirements needed to align this Regulation with Article 6 of the Paris Agreement and best practices, including corresponding adjustments, host party authorization and methodologies. This assessment shall review the use of certified units to compensate emissions generated outside of the EU NDC and the Union’s climate objectives and shall be accompanied, where appropriate, by a legislative proposal.

~~(e) prevention of soil degradation and soil erosion, soil restoration, improvement of soil fertility and of nutrient management and soil biota;~~

Article 19

~~(f) protection of biodiversity, conservation or restoration of habitats or species, including maintenance and creation of landscape features or non-productive areas;~~

Entry into force

~~(g) actions for a sustainable and reduced use of pesticides and synthetic fertilizers, in particular those that present a risk for human health or environment;~~

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

~~(h) agricultural productivity including security of agricultural production;~~

This Regulation shall be binding in its entirety and directly applicable in all Member States.

~~(i) quality of agricultural produce;~~

Done at ▌ ,

~~(j) farmers income or the economic result of the farm operation;~~

For the European Parliament For the Council

~~(k) food security and availability.~~

The President The President

~~Carbon farming activity shall also have a neutral impact or generate co-benefits in terms of social and economic sustainability.~~

Annex I

~~A carbon removal or carbon farming activity shall not lead to land grabbing and land speculation.~~

Elements of the certification methodologies referred to in Article 8

~~Amendment 84~~

When adopting delegated acts pursuant to Article 8, the certification methodologies shall include ▌ the following elements, taking into consideration the specificities for different activities:

~~Proposal for a regulation~~

(a) type of activity and description of the practices and processes covered, including its activity period and monitoring period;

~~Article 7 – paragraph 2~~

▌

~~Text proposed by the Commission~~

▌

~~Amendment~~

▌

2. For the purposes of paragraph 1, a carbon removal activity shall comply with minimum sustainability requirements laid down in the certification methodologies, set out in the delegated acts adopted pursuant to Article 8.

▌

2. For the purposes of paragraph 1 and 2, a carbon removal and carbon farming activity shall comply with minimum sustainability requirements laid down in the certification methodologies, set out in the delegated acts adopted pursuant to Article 8 in compliance with national and Union legislation on sustainably requirements, or where relevant and available to those laid down in the sectoral sustainability corresponding regulation, such as the Common Agriculture Policy (CAP) for agriculture carbon farming removal activities.

▌

~~Amendment 85~~

(b) rules for identifying all carbon removal sinks and GHG emission sources referred to in Article 4(1), (2) and (2a).

~~Proposal for a regulation~~

(c) rules for calculating the baseline referred to in Article 4(1), point (a), or in Article 4 (2.1), point (a) and (2.2), points (a) and (c), or in Article 4(2a) point (a);

~~Article 7 – paragraph 3~~

(d) rules for calculating the total carbon removals referred to in Article 4 (1), point (b), or in Article 4 (2.1), point (b), or in Article 4(2a) point (b);

~~Text proposed by the Commission~~

(da) rules for calculating LULUCF soil emissions referred to in Article 4 (2.2), point (b);

~~Amendment~~

(db) rules for calculating agricultural soil emissions, referred to in Article 4 (2.2), point (d);

3. Where an operator or group of operators report co-benefits that contribute to the sustainability objectives referred to in paragraph 1 beyond the minimum sustainability requirements referred to in paragraph 2, they shall comply with the certification methodologies set out in delegated acts referred to in Article 8. The certification methodologies shall incentivise as much as possible the generation of co-benefits going beyond the minimum sustainability requirements, in particular for the objective referred to in paragraph 1, point (f).

(e) rules for calculating GHGassociated emissions referred to in Article 4(1), point (c), in Article 4 (2.1), point (c), in Article 4(2.2), point (g), and in Article 4(2a), point (c);

3. Where an operator or group of operators report co-benefits that contribute to the sustainability objectives referred to in paragraph 1 and 1a beyond the minimum sustainability requirements referred to in paragraph 2, the way they are reported under this regulation shall comply with the certification methodologies set out in delegated acts referred to in Article 8. The certification methodologies shall include a description of co-benefits going beyond the minimum sustainability requirements, and provide additional reward for such co-benefits.

(ea) rules for updating the standardised baselines referred to in Article 4(5a) and for updating the activity-specific baseline referred to in Article 4(7)

~~Amendment 86~~

(f) rules to address uncertainties in a conservative manner in the quantification of carbon removals referred to in Article 4(8);

~~Proposal for a regulation~~

(g) rules to carry out the specific additionality tests referred to in Article 5(2);

~~Article 8 – paragraph 2~~

~~Text proposed by the Commission~~

~~Amendment~~

2. The Commission is empowered to adopt delegated acts in accordance with Article 16 to establish the technical certification methodologies referred to in paragraph 1 for activities related to permanent carbon storage, carbon farming and carbon storage in products. Those certification methodologies shall include at least the elements set out in Annex I.

2. The Commission is empowered to adopt, within the period of 6 months after the entry into force of this Regulation, delegated acts in accordance with Article 16 to establish the technical certification methodologies referred to in paragraph 1 for activities related to permanent carbon storage, carbon farming and carbon storage in products. Those certification methodologies shall include at least the elements set out in Annex I. They may be based on, or consist of methodologies used in existing carbon farming projects, which have been submitted to the Commission by the relevant experts in the course of the consultation referred to in the second subparagraph.

~~Amendment 87~~

~~Proposal for a regulation~~

~~Article 8 – paragraph 2 – subparagraph 1 (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

Before adopting those delegated acts, the Commission shall carry out a thorough public consultation, also including experts involved in the carbon farming projects currently in place, Member States and farmers representatives and the Expert Group on Carbon Removals.

~~For carbon farming, the methodologies shall take into account the diversity of the soil, climate, temperature and other relevant contexts of the different Member States.~~

Furthermore for carbon farming, any activity that sequesters carbon and achieves GHG emission reduction on farm level can be certified. When multiple different carbon farming activities take place on farm level, a single farm certification may be done. In the delegated act, the Commission shall present carbon farming certification methodologies for at least the activities listed in Annex III. This Annex and delegated act shall be reviewed periodically to include new or innovative carbon farming activities, prepared in accordance with criteria listed in paragraph 3 and after consulting experts involved in the carbon farming projects currently in place, Member States and farmers representatives, including small farmers, and the Expert Group on Carbon Removals.

~~Amendment 88~~

~~Proposal for a regulation~~

~~Article 8 – paragraph 3 – point a~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(a) the objectives of ensuring the robustness of carbon removals and recognising the protection and restoration of ecosystems;~~

~~(a) the objectives of ensuring the robustness of carbon removals and GHG reductions and recognising the protection and restoration of ecosystems;~~

~~Amendment 89~~

~~Proposal for a regulation~~

~~Article 8 – paragraph 3 – point b~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(b) the objective of minimising administrative burden for operators, particularly for small-scale carbon farming operators;~~

~~(b) the objective of minimising administrative and financial burden for operators, particularly for small-scale carbon farming operators especially for Article 4 paragraph 9;~~

~~Amendment 90~~

~~Proposal for a regulation~~

~~Article 8 – paragraph 3 – point d a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(da) existing standards and best practices in the certification methodologies;~~

~~Amendment 91~~

~~Proposal for a regulation~~

~~Article 8 – paragraph 3 – point d b (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(db) the outcomes of the deliberations of an expert group consisting of experts of member states and other experts;~~

~~Amendment 92~~

~~Proposal for a regulation~~

~~Article 8 – paragraph 3 – point d c (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(dc) the outcomes of a public consultation as laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making;~~

~~Amendment 93~~

~~Proposal for a regulation~~

~~Article 8 – paragraph 3 – point d d (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(dd) the outcomes of a call for evidence specific to the respective acts;~~

~~Amendment 94~~

~~Proposal for a regulation~~

~~Article 8 – paragraph 3 – point d e (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(de) the outcome of a call for feedback on a draft of the respective acts.~~

~~Amendment 95~~

~~Proposal for a regulation~~

~~Article 9 – paragraph 1~~

~~Text proposed by the Commission~~

~~Amendment~~

1. To apply for a certification of compliance with this Regulation, an operator or a group of operators shall submit an application to a certification scheme. Upon acceptance of that application, the operator or a group of operators shall submit to a certification body a comprehensive description of the carbon removal activity, including the certification methodology applied to assess compliance with Articles 4 to 7, the expected total carbon removals and net carbon removal benefit, or carbon farming benefit. Groups of operators shall also specify how advisory services on carbon removal activities are provided and shall specify how they propose to minimise the administrative burden for land managers, in particular to small-scale carbon operators. For carbon farming activities, Member States may provide advice to farmers in the framework of the advisory services referred to in Article 15 or Regulation (EU) 2021/2115. For operators or groups of operators involved in cross-border and/or multi-country carbon farming projects, the certification scheme may appoint a single certification body for all cross-border and multi-country carbon farming projects.

~~Amendment 96~~

~~Proposal for a regulation~~

~~Article 9 – paragraph 1 a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

1a. For carbon farming, agricultural parcel registered in the Land Parcel Identification System (LPIS) set out in article 68 of Regulation (EU) 2116/2021 that is already certified in a different carbon removal or carbon farming scheme not compliant with this Regulation shall not be eligible to apply for the certification.

~~Amendment 97~~

~~Proposal for a regulation~~

~~Article 9 – paragraph 2~~

~~Text proposed by the Commission~~

~~Amendment~~

2. The certification body shall conduct a certification audit to verify the information submitted in accordance with paragraph 1 and to confirm compliance of the carbon removal activity with Articles 4 to 7. As a result of that certification audit, the certification body shall issue a certification audit report, that includes a summary, and a certificate containing, as a minimum, the information set out in Annex II. The certification scheme shall control the certification audit report and the certificate, and make the summary of the certification audit report and the certificate publicly available in a registry referred to in Article 12.

2. The certification body shall conduct a certification audit to verify the information submitted in accordance with paragraph 1 and to confirm compliance of the carbon removal activity with Articles 4 to 7. As a result of that certification audit, the certification body shall issue a certification audit report, that includes a summary, and, when all the information provided by the operator or group of operators comply with the provisions set out in Articles 4 to 7 a certificate containing, as a minimum, the information set out in Annex II. The certification scheme shall control the certification audit report and the certificate, and make the summary of the certification audit report and the certificate publicly available in a registry referred to in Article 12.

~~Amendment 98~~

~~Proposal for a regulation~~

~~Article 9 – paragraph 4~~

~~Text proposed by the Commission~~

~~Amendment~~

4. The operator or a group of operators shall support the certification body during certification and re-certification audits, notably by giving access to the activity premises and providing relevant data and documentation, ensuring compliance with national and European rules on the protection of personal data, know-how and trade secrets;

~~Amendment 99~~

~~Proposal for a regulation~~

~~Article 9 – paragraph 5~~

~~Text proposed by the Commission~~

~~Amendment~~

5. The Commission may adopt implementing acts to set out the structure, format, technical details of the comprehensive description of the carbon removal activity referred to in paragraph 1, and of the certification and re-certification audit reports referred to in paragraphs 2 and 3. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17.

5. The Commission shall adopt implementing acts to set out the structure, format, technical details of the comprehensive description of the carbon removal or carbon farming activity referred to in paragraph 1, and of the certification and re-certification audit reports referred to in paragraphs 2 and 3, as well as a maximum price for certification audit set in relation to total net carbon removal or net carbon farming benefit of operators or group of operators. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17.

~~Amendment 100~~

~~Proposal for a regulation~~

~~Article 10 – paragraph 1~~

~~Text proposed by the Commission~~

~~Amendment~~

1. Certification bodies appointed by certification schemes shall be accredited by a national accreditation authority pursuant to Regulation (EC) No 765/2008 of the European Parliament and of the Council37 .

~~For the purposes of carbon farming, the national accreditation authority shall be national paying agencies within the meaning of Article 9 of Regulation (EU) 2021/2116~~

~~__________________~~

37 Regulation (EC) No 765/2008 of the European Parliament and of the Council of 9 July 2008 setting out the requirements for accreditation and market surveillance relating to the marketing of products and repealing Regulation (EEC) No 339/93 (OJ L 218, 13.8.2008, p. 30).

~~Amendment 101~~

~~Proposal for a regulation~~

~~Article 11 – paragraph 2 a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~2 a. A framework will be developed ensuring consistency across Member States to enable the operation of a common certification scheme across the Union.~~

~~Amendment 102~~

~~Proposal for a regulation~~

~~Article 12 – paragraph 1~~

~~Text proposed by the Commission~~

~~Amendment~~

1. A certification scheme shall establish and duly maintain a public registry to make publicly accessible the information related to the certification process, including the certificates and updated certificates, and the quantity of carbon removal units certified in accordance with Article 9. Those registries shall use automated systems, including electronic templates, and shall be interoperable.

1. A certification scheme shall establish and duly maintain a public registry (‘certification scheme registry’) to make publicly and easily accessible in searchable way the information related to the certification process, including the certificates and updated certificates, and the quantity of carbon removal units, carbon farming removal unit, GHG emissions reduction unit certified in accordance with Article 9. Those registries shall use automated systems, including electronic templates, and shall be interoperable.

~~Amendment 103~~

~~Proposal for a regulation~~

~~Article 12 – paragraph 1 a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

1a. For the purposes of carbon farming, management practices related to the carbon farming activity, start date and end date of the carbon removal activity; name of the certification scheme and unique certificate number or code on a particular agricultural parcel shall be included in the Identification system for agricultural parcels, set out in Article 68 of Regulation (EU) 2116/2021.

Further to the provisions set out in paragraph 1, Commission shall establish and duly maintain a public registry (‘Union registry’) which will transpose data from all certification schemes registries established in the EU to a common registry. The certification schemes shall provide to the Commission the information included in paragraph for the purposes of establishing and maintaining the Union registry.

~~Amendment 104~~

~~Proposal for a regulation~~

~~Article 12 – paragraph 2~~

~~Text proposed by the Commission~~

~~Amendment~~

2. The Commission may adopt implementing acts setting out the structure, format, and technical details of the public registries, and of the recording, holding or use of carbon removal units, as referred to in paragraph 1. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17.

2. The Commission shall adopt implementing acts setting out the structure, format, and technical details of the public registries and the Union registry, and of the recording, holding or use of carbon removal units, as referred to in paragraph 1. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17.

~~Amendment 105~~

~~Proposal for a regulation~~

~~Article 13 – paragraph 4 a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~4 a. Requirements for the notification and recognition processes shall ensure accessibility for smaller certification schemes.~~

~~Amendment 106~~

~~Proposal for a regulation~~

~~Article 18 – paragraph 2 a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

2a. Further to the Report that the Commission will submit to the European Parliament and to the Council by 31 July 2026 as referred to in Directive 2003/87/EC, the Commission shall consider how GHG emissions reduction resulting from carbon farming activity, shall be accounted towards the Union 2040 climate target and how they shall be covered by emissions trading.

~~Amendment 107~~

~~Proposal for a regulation~~

~~Article 18 – paragraph 2 b (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

2b. Further to the Report that the Commission will submit to the European Parliament and to the Council within 12 months of the entry into force of this Regulation as referred to in Regulation 2018/841, the Commission shall consider how the carbon removals resulting from carbon farming shall be accounted for towards the 2030 Union target for net greenhouse gas removals.

~~Amendment 108~~

~~Proposal for a regulation~~

~~Article 18 – paragraph 2 c (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

2c. Further to possible developments or absence of developments in the international arena, the Commission shall consider, where appropriate, proposing a framework for certification schemes for third countries willing to align with EU certification standards or to comply with equivalent arrangements.

~~Amendment 109~~

~~Proposal for a regulation~~

~~Annex I – paragraph 1 – point h~~

~~Text proposed by the Commission~~

~~Amendment~~

(h) rules on monitoring and mitigation of any risk of release of the stored carbon referred to in Article 6(2), point (a);

~~(h)~~(i) rules on ~~monitoring and mitigation of any risk of release of the~~appropriate ~~stored~~liability ~~carbon~~mechanisms referred to in Article 6(2), point ~~(a)~~(b), and ~~minimum~~Article ~~monitoring~~6(2b), ~~period~~including ~~required~~rules ~~for~~on ~~carbon~~the ~~farming~~risk ~~activities;~~of failure of the relevant liability mechanism;

~~Amendment 110~~

(ia) rules for operationalising the requirement referred to in article 6(3);

~~Proposal for a regulation~~

(ib) rules on monitoring of soil emission reductions referred to in article 6(3a);

~~Annex I – paragraph 1 – point i a (new)~~

(j) rules on the minimum sustainability requirements referred to in Article 7(2);

~~Text proposed by the Commission~~

(k) rules on the monitoring and reporting of the co-benefits referred to in Article 7(3).

~~Amendment~~

▌

~~(ia) risk assessment per carbon farming activity establishing the percentage rate of units to be put in a pool managed by the certification scheme;~~

▌

~~Amendment 111~~

Annex II

~~Proposal for a regulation~~

Minimum information included in the certificate referred to in Article 9

~~Annex I – paragraph 1 – point k a (new)~~

The certificate of compliance shall include the following minimum information:

~~Text proposed by the Commission~~

(a) name and type of the ▌ activity, including practices and processes, and the name and contact details of the operator or group of operators;

~~Amendment~~

(b) the location of the ▌ activity, including geographically explicit location of the activity boundaries, respecting 1:5000 mapping scale requirements for the Member State;

~~(ka) quality criteria for GHG emission reductions in scope of carbon farming;~~

▌

~~Amendment 112~~

~~Proposal for a regulation~~

(d) name of the certification scheme;

~~Annex I – paragraph 1 – point k b (new)~~

(e) name, address and logo of the certification body;

~~Text proposed by the Commission~~

(f) ▌ unique ▌ number or code of the certificate of compliance;

~~Amendment~~

(g) place, date of issuance and validity period of the certificate of compliance;

~~(kb) rules for the verification and certification of GHG emission reductions;~~

(h) reference to the applicable certification methodology referred to in Article 8;

~~Amendment 113~~

▌

~~Proposal for a regulation~~

▌

~~Annex I – paragraph 1 – point k c (new)~~

▌

~~Text proposed by the Commission~~

(i) permanent net carbon removal benefit referred to in Article 4(1), or the temporary net carbon removal benefit referred to in Article 4(2.1) or the net soil emission reduction benefit referred to in Article 4(2.2) or the temporary net carbon removal benefit referred to Article 4(2a);

~~Amendment~~

(j) carbon removals under the baseline referred to in Article 4(1), point (a), or in Article 4(2.1), point (a), or in Article 4(2a) point (a); or soil emission under the baseline referred to in Article 4(2.2), points (a) and (c);

~~(kc) standard setting for the price point of carbon farming removal and GHG reduction units;~~

(k) total carbon removals referred to in Article 4(1), point (b), or in Article 4(2.1), point (b), or in Article 4(2a) point (b); or total soil emissions referred to in Article 4(2.2), point (b) and (d);

~~Amendment 114~~

(l) increase in direct and indirect GHGassociated emissions referred to in Article 4(1), point (c), in Article 4 (2.1), point (c), in Article 4(2.2), point (g), and in Article 4(2a), point (c)

~~Proposal for a regulation~~

(m) breakdown by gases, sources, carbon sinks and stocks with regard to the information referred to in points (j), (k) and (l) ▌

~~Annex I a (new)~~

(n) duration of the monitoring period of the activity;

~~Text proposed by the Commission~~

(na) amount of biomass used and proof of compliance with the minimum sustainability requirements referred to in Article 7(2);

~~Amendment~~

▌

~~Non-exhaustive list of examples of carbon farming activities eligible for certification~~

▌

~~Nature and landscape activities~~

~~Nature and Landscape~~

~~Planting hedgerows~~

~~Planting trees in crop- and grasslands~~

~~Creation of interspersed habitats/retreats for wildlife with permanent plant cover on agricultural land~~

~~Wetlands and Peatlands activities~~

~~Coastal seagrass restoration~~

~~Coastal marshland restoration~~

~~Coastal dunes vegetation restoration~~

~~Peatland restoration - re-wetting / reduced drainage of freshwater peatlands~~

~~Rainwater bioretention areas / „Rainwater Harvesting“Paludiculture~~

~~Cropland activities~~

~~Conversion of cropland to permanent grassland~~

~~Cultivation of deep rooting plants~~

~~Annual cultivation of cover crops / permanent greening, also undersown crops~~

~~Cultivation of perennial crops~~

~~SOC-enriching crop rotations / choice of crops~~

~~Cultivation of arable crops~~

~~Retention of crop residues~~

~~Change of tillage system - to reduced or no tillage (strip-till), also reduction of soil compaction by heavy machinery, including the use of permanent tracks~~

~~Deep inversion tillage~~

~~Agroforestry systems~~

~~Orchards and vineyards with minimum soil cover~~

~~Lignocellulose from agricultural production~~

~~Biochar as soil additive~~

~~Cultivation of fibre plants as industrial raw material for mid to long lasting products~~

~~Cultivation of perennial forage crops Permanent grassland activities~~

~~Converting grass leys to grass-legume mixtures~~

~~Woody plant encroachment on former meadows and pastures~~

~~Grazing – Optimal Intensity~~

~~Restoration of degraded grassland through optimal management intensity~~

~~Cutting time restrictions for insect- and bird-friendly management~~

~~Forestry activities~~

~~Afforestation / Reforestation~~

~~Carbon sequestratrion optimized stand management~~

~~Conversion to climate-stable mixed species forests~~

~~Rewetting/reduced drainage of forests on low productivity peatlands~~

~~Species-rich graded forest edges~~

~~Fauna and fungi enhancing measures Conversion of coppice to stump-planted forest~~

~~Animal husbandry activities~~

~~Ecomethane~~

~~Coastal management activities~~

~~Reducing the degradation of seagrass beds~~

~~Amendment 115~~

~~Proposal for a regulation~~

~~Annex II – paragraph 1 – point i a (new)~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(ia) net carbon farming benefit referred to in Article 4(2)~~

~~Amendment 116~~

~~Proposal for a regulation~~

~~Annex II – paragraph 1 – point j~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(j) carbon removals under the baseline referred to in Article 4(1), point (a);~~

~~(j) carbon removals under the baseline referred to in Article 4(1), point (a) or Article 4(2), point (a);~~

~~Amendment 117~~

~~Proposal for a regulation~~

~~Annex II – paragraph 1 – point k~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(k) total carbon removals referred to in Article 4(1), point (b);~~

~~(k) total carbon removals referred to in Article 4(1), point (b); or in Article 4(2), point (b);~~

~~Amendment 118~~

~~Proposal for a regulation~~

~~Annex II – paragraph 1 – point l~~

~~Text proposed by the Commission~~

~~Amendment~~

~~(l) increase in direct and indirect greenhouse gas emissions referred to in Article 4(1), point (c);~~

~~(l) increase in direct and indirect greenhouse gas emissions referred to in Article 4(1), point (c); or in Article 4(2), point (c);~~

~~Amendment 119~~

~~Proposal for a regulation~~

~~Annex II – paragraph 1 – point o~~

~~Text proposed by the Commission~~

~~Amendment~~

(o) any sustainability co-benefits referred to in Article 7(3);

~~(o) whether the carbon removal~~(oa) orfor carbon ~~farming activity generate~~farming, co-benefits ~~for any of the sustainability objectives~~ referred to in Article ~~7(1) and~~ 7(1a);

~~Amendment 120~~

▌

~~Proposal for a regulation~~

▌

~~Annex II – paragraph 1 – point p a (new)~~

(p) reference to any other international or national certification, including the unique certification number or code;

~~Text proposed by the Commission~~

(q) type of liability mechanism, contribution of the activity to the mechanism and the liable legal or natural person;

~~Amendment~~

(r) quantity and validity of certified units;

~~(pa) GHG emission reduction, as referred to in Article 4(2) point (d).~~

(s) uncertainties in the quantification of carbon removals and soil emission reductions in accordance with Article 4(8).

~~PROCEDURE – COMMITTEE ASKED FOR OPINION~~

Annex IIa

~~Title~~

Minimum information included in the Union registry and certification registries referred to in Article 12

~~Establishing a Union certification framework for carbon removals~~

The Union registry and certification registries referred to in Article 12 shall include the following minimum information for each activity and each certified unit:

~~References~~

a) name and type of the activity, including name and contact details of the operator or group of operators;

~~COM(2022)0672 – C9-0399/2022 – 2022/0394(COD)~~

b) location of the activity, including geographically explicit location of the activity boundaries, respecting 1:5000 mapping scale requirements for the Member State;

~~Committee responsible~~

c) duration of the activity, including start date and end date ;

~~Date announced in plenary~~

d) name of the certification scheme, including its recognition decision referred to in Article 13, its rules and procedures and the list of appointed certification bodies referred to in article 11, and its annual reports referred to in Article 14;

~~ENVI~~

e) reference to the applicable certification methodology referred to in Article 8;

~~1.2.2023~~

f) expected annual net benefit referred to in article 4;

~~Opinion by~~

g) any sustainability co-benefits referred to in article 7;

~~Date announced in plenary~~

h) certification status, including certificates of compliance and certification and re-certification audit reports referred to in Article 9; quantity and status of the certified units (e.g. issued, retired, expired, cancelled, allocated to a buffer), and end-use purpose of the certified units and the using entity.

~~AGRI~~

_______________________

~~1.2.2023~~

~~Associated committees - date announced in plenary~~

~~11.5.2023~~

~~Rapporteur for the opinion~~

~~Date appointed~~

~~Martin Hlaváček~~

~~29.3.2023~~

~~Discussed in committee~~

~~23.5.2023~~

~~28.6.2023~~

~~Date adopted~~

~~30.8.2023~~

~~Result of final vote~~

–:

~~Members present for the final vote~~

Attila Ara-Kovács, Carmen Avram, Adrian-Dragoş Benea, Benoît Biteau, Daniel Buda, Asger Christensen, Ivan David, Jérémy Decerle, Salvatore De Meo, José Manuel Fernandes, Luke Ming Flanagan, Paola Ghidoni, Martin Häusling, Martin Hlaváček, Krzysztof Jurgiel, Jarosław Kalinowski, Gilles Lebreton, Norbert Lins, Chris MacManus, Colm Markey, Ulrike Müller, Maria Noichl, Juozas Olekas, Bronis Ropė, Anne Sander, Sarah Wiener

~~Substitutes present for the final vote~~

Asim Ademov, Theresa Bielowski, Franc Bogovič, Christophe Clergeau, Lara Comi, Rosanna Conte, Marie Dauchy, Anna Deparnay-Grunenberg, Lena Düpont, Emmanouil Fragkos, Charles Goerens, Claude Gruffat, Anja Hazekamp, Pär Holmgren, Ivo Hristov, Jan Huitema, Ladislav Ilčić, Peter Jahr, Manolis Kefalogiannis, Petros Kokkalis, Zbigniew Kuźmiuk, Sylvia Limmer, Benoît Lutgen, Cristina Maestre Martín De Almagro, Gabriel Mato, Tilly Metz, Alin Mituța, Dan-Ştefan Motreanu, Sandra Pereira, Pina Picierno, Tonino Picula, Nicola Procaccini, Katarína Roth Neveďalová, Christine Schneider, Ivan Vilibor Sinčić, Massimiliano Smeriglio, Michaela Šojdrová, Riho Terras, Irène Tolleret, Tom Vandenkendelaere, Achille Variati, Hilde Vautmans, Adrián Vázquez Lázara, Thomas Waitz, Emma Wiesner

~~Substitutes under Rule 209(7) present for the final vote~~

~~Erik Poulsen~~

~~FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION~~

~~Key to symbols:~~