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From · act followup · 2024-07-29 SP-2024-377-TA-9-2023-0402 Follow up to T9-0402/2023
To · opinion parliamentary committee draft · 2023-04-12 AGRI-PA-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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ORDINARY LEGISLATIVE procedure

PA_Legam

Follow up to the European Parliament legislative resolution on the proposal for a regulation of the European Parliament and of the Council establishing a Union certification framework for carbon removals

SHORT JUSTIFICATION

1. Rapporteur: Lídia PEREIRA (EPP / PT)

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.

2. Reference numbers: 2022/0394 (COD) / A9-0329/2023 / P9_TA(2024)0195

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.

3. Date of adoption of the resolution: 10 April 2024

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.

4. Legal basis: Article 192(1) of the Treaty on the Functioning of the European Union

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.

5. Competent Parliamentary Committee: Committee on Environment, Public Health and Food Safety (ENVI)

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.

6. Commission's position: accepts all amendments. In addition, the Commission presented the following statement:

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.

'Commission statement on the occasion of the adoption of Regulation (EU) 2024.../...+

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.

The Commission intends to adopt the first delegated act by [OJ one year after the entry into force of the Regulation] and to publish on its website by [OJ six months after the entry into force of the Regulation] a forward planning document on the development of certification methodologies, which will be updated every year.

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 LPIS database for registration of carbon farming commitments and highest level of transparency.

In addition, the Commission intends to organise appropriate opportunities to comment on the delegated acts, such as through public feedback.

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 be limited only to Scope 3 emissions reductions.

The Commission will comply with its commitments related to ensuring the Parliament’s and Council’s involvement in the process of preparation of delegated acts, such as those laid down in point 28 and the Annex to the Inter-institutional Agreement on Better Lawmaking of 2016.

AMENDMENT

+ OJ: Please insert the number of the act in 2022/0394 (COD) and add the publication details in a footnote'

The Committee on Agriculture and Rural Development calls on the Committee on Agriculture and Rural Development, 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 carbon removals

establishing a Union certification framework for carbon removals and carbon farming

Or. en

Justification

Due to the inherently different structure of carbon removal activities and carbon farming activities, mainly when it comes to the permanence of carbon storage and the GHG reductions linked to the activity, we propose to decouple these two activities in the legal text

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,

Or. en

Justification

A proposal to add Article 43 TFEU as legal basis of the legislative act due to the close link of carbon farming to the CAP

Amendment 3

Proposal for a regulation

Recital 13

Text proposed by the Commission

Amendment

(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.

(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. 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 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.

Or. en

Justification

Storage in geological formations is not the only type of permanent storage

Amendment 4

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 the deployment of carbon removals and carbon farming by operators or groups of operators. To that end, this Regulation establishes a voluntary Union framework for the certification of carbon removals and carbon farming by laying down:

Or. en

Justification

Due to the inherently different structure of carbon removal activities and carbon farming activities, mainly when it comes to the permanence of carbon storage and the GHG reductions linked to the activity, we propose to decouple these two activities in the legal text

Amendment 5

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;

Or. en

Justification

Due to the inherently different structure of carbon removal activities and carbon farming activities, mainly when it comes to the permanence of carbon storage and the GHG reductions linked to the activity, we propose to decouple these two activities in the legal text

Amendment 6

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 the verification and certification of carbon removals and carbon farming;

Or. en

Justification

Due to the inherently different structure of carbon removal activities and carbon farming activities, mainly when it comes to the permanence of carbon storage and the GHG reductions linked to the activity, we propose to decouple these two activities in the legal text

Amendment 7

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.

Or. en

Justification

Due to the inherently different structure of carbon removal activities and carbon farming activities, mainly when it comes to the permanence of carbon storage and the GHG reductions linked to the activity, we propose to decouple these two activities in the legal text

Amendment 8

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 geological carbon pools, biogenic carbon pools, long-lasting products and materials, and the marine environment;

Or. en

Justification

Reduction of emissions from a biogenic carbon pool is included in the definition of a carbon removal. Emission reductions should however not be confused with carbon removals. It can be desirable to create incentives for reducing emissions.

Amendment 9

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;

Or. en

Justification

Reduction of emissions from a biogenic carbon pool is included in the definition of a carbon removal. Emission reductions should however not be confused with carbon removals. It can be desirable to create incentives for reducing emissions.

Amendment 10

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(c a) ‘biogenic emission reduction’ means the reduction of GHG emissions release from a biogenic carbon pool to the atmosphere’

Or. en

Justification

Reduction of emissions from a biogenic carbon pool is included in the definition of a carbon removal. Emission reductions should however not be confused with carbon removals. It can be desirable to create incentives for reducing emissions

Amendment 11

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 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

Or. en

Justification

Precision that for carbon farming activities, these are performed by farmers and forest owners or managers

Amendment 12

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. en

Justification

Due to the inherently different structure of carbon removal activities and carbon farming activities, mainly when it comes to the permanence of carbon storage and the GHG reductions linked to the activity, we propose to decouple these two activities in the legal text

Amendment 13

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 reduction activity related to land management, agriculture 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 to the atmosphere, while at the same time achieving biogenic emission reduction, such as methane and nitrous oxide reduction;

Or. en

Justification

A carbon farming project must integrate the entire carbon cycle. Ignoring non-CO2 emission reductions would also ignore the specificities of agricultural carbon, since more than 80% of the sector's emissions are composed of N2O and CH4. A balance sheet based exclusively on storage would run the risk of overlooking the positive and negative externalities of an action. The current carbon farming schemes and LIFE projects focused on carbon farming have shown that the same project can lead to emission reductions and carbon absorption in a complementary manner.

Amendment 14

Proposal for a regulation

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

Text proposed by the Commission

Amendment

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

Or. en

Justification

Carbon storage in living biomass is by definition a non permanent storage. Nonetheless, the sector's storage potential is not only very large on European soil because of the extent of cultivation and the efficiency of permanent grasslands, but it also has the advantage of a high sequestration rate. This means that the non permanent feature of storage should not discredit its role in the EU certification scheme

Amendment 15

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;

Or. en

Justification

Due to the inherently different structure of carbon removal activities and carbon farming activities, mainly when it comes to the permanence of carbon storage and the GHG reductions linked to the activity, we propose to decouple these two activities in the legal text

Amendment 16

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;

Or. en

Justification

Slight redrafting to prevent a cyclical definition

Amendment 17

Proposal for a regulation

Article 2 – paragraph 1 – point o

Text proposed by the Commission

Amendment

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

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

Or. en

Justification

Due to the inherently different structure of carbon removal activities and carbon farming activities, mainly when it comes to the permanence of carbon storage and the GHG reductions linked to the activity, we propose to decouple these two activities in the legal text

Amendment 18

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(o a) “biogenic emission reduction unit” means one tonne of CO2 or CO2 equivalent certified GHG emission reduction generated by carbon farming activity and registered by a certification scheme.

Or. en

Justification

Reduction of emissions from a biogenic carbon pool is included in the definition of a carbon removal. Emission reductions should however not be confused with carbon removals. It can be desirable to create incentives for reducing emissions.

Amendment 19

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:

Or. en

Justification

Due to the inherently different structure of carbon removal activities and carbon farming activities, mainly when it comes to the permanence of carbon storage and the GHG reductions linked to the activity, we propose to decouple these two activities in the legal text

Amendment 20

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;

Or. en

Justification

Due to the inherently different structure of carbon removal activities and carbon farming activities, mainly when it comes to the permanence of carbon storage and the GHG reductions linked to the activity, we propose to decouple these two activities in the legal text

Amendment 21

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.

Or. en

Justification

Reduction of emissions from a biogenic carbon pool is included in the definition of a carbon removal. Emission reductions should however not be confused with carbon removals. It can be desirable to create incentives for reducing emissions.

Amendment 22

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 removal benefit shall be quantified by the following formula:

Net carbon removal benefit = CRbaseline – CRtotal – GHGreduction - GHGincrease > 0 where:

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

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

(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 farming activity.

(d) GHGreduction is the biogenic emission reduction of GHG emissions accounted for in CO2 or CO2 equivalent, achieved through the implementation of the carbon farming activity

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.

Or. en

Justification

A carbon farming project must integrate the entire carbon cycle. Storage must complement and not replace emission reductions, which remain the primary lever for decarbonising the economy. Ignoring non-CO2 emission reductions would also ignore the specificities of agricultural carbon, since more than 80% of the sector's emissions are composed of N2O and CH4. The current carbon farming schemes and LIFE projects focused on carbon farming have shown that the same project can lead to emission reductions and carbon absorption in a complementary manner.

Amendment 23

Proposal for a regulation

Article 4 – paragraph 3

Text proposed by the Commission

Amendment

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.

3. Quantities referred to in paragraph 1, points (a), (b) and (c), and paragraph 2, points (a), (b), (c) and (d) 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.

Or. en

Justification

A carbon farming project must integrate the entire carbon cycle. Storage must complement and not replace emission reductions, which remain the primary lever for decarbonising the economy. Ignoring non-CO2 emission reductions would also ignore the specificities of agricultural carbon, since more than 80% of the sector's emissions are composed of N2O and CH4. The current carbon farming schemes and LIFE projects focused on carbon farming have shown that the same project can lead to emission reductions and carbon absorption in a complementary manner.

Amendment 24

Proposal for a regulation

Article 4 – paragraph 4

Text proposed by the Commission

Amendment

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

4. Carbon removals shall be quantified in a relevant, accurate, evidence-based, consistent, comparable and transparent manner.

Or. en

Amendment 25

Proposal for a regulation

Article 4 – paragraph 9

Text proposed by the Commission

Amendment

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.

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 with simplified methods for small scale operators, as provided for in Article 8.3.

Or. en

Justification

To decrease administrative burden for small farmers

Amendment 26

Proposal for a regulation

Article 5 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

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

(a) go beyond the relevant statutory management requirements and GAEC standards established under Chapter I, Section 2 of Regulation (EU) 2021/2115;

(b) go beyond the 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

Or. en

Justification

To further link the carbon farming to CAP rules, the additionality rules shall be based on SMR and GAEC standards

Amendment 27

Proposal for a regulation

Article 5 – paragraph 2

Text proposed by the Commission

Amendment

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.

Or. en

Amendment 28

Proposal for a regulation

Article 6 – paragraph 3 a (new)

Text proposed by the Commission

Amendment

3 a. 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. en

Justification

The Commission proposal does not correspond to the reality of the post-project risk and would lead to exorbitant monitoring costs. It would be fairer and more practical for certified methods to provide for documented discounts on projects with reversibility risks. The Commission should provide an assessment of the carbon storage permanence in the certification methodology per activity, based on which the discount rate shall be set. Furthermore, the possibility to ensure long-term storage using carbon removal portfolio-wide permanence mechanisms should be included

Amendment 29

Proposal for a regulation

Article 7 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

1 a. Carbon farming activities shall benefit at least one of the actions below:

(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;

(d) prevention of soil degradation, soil restoration, improvement of soil fertility and of nutrient management and soil biota;

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

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

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

Or. en

Justification

In order to avoid creating a new sustainability framework for agriculture in addition to the one set in the CAP, taxonomy rules should not apply to carbon farming activities, not to create a double structure. An uptake of carbon farming activity should not be an impediment on achieving also economic and social sustainability and should also not endanger the EU food security.

Amendment 30

Proposal for a regulation

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.

Or. en

Justification

In order to reach the EU net zero ambition a truly efficient business model for carbon removal and carbon farming must be in place as soon as possible. The European Commission must provide the full regulatory framework as early as possible after the entry into force of this regulation.

Amendment 31

Proposal for a regulation

Article 8 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

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

Or. en

Justification

To account for the diversity of conditions in the EU.

Amendment 32

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 burden for operators, particularly for small-scale carbon farming operators especially for the Article 4.9;

Or. en

Justification

Minimizing administrative burden for small farmers.

Amendment 33

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(d a) existing standards and best practices in the certification methodologies

Or. en

Justification

Several companies operating on the EU marker have been working on carbon farming schemes for a long time and their experience should be taken into account when drafting EU common framework

Amendment 34

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(d b) (f) the outcomes of the deliberations of an expert group consisting of experts of member states and other experts;

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

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

(i) the outcome of a call for feedback on a draft of the respective acts;

Or. en

Justification

Commission should use a full public consultation, including a call for evidence at the start of the drafting of proposals and a call for feedback on the draft proposals. This is appropriate since not all interested stakeholders can participate in the expert group and it enables the knowledge and experience of these stakeholders to become available to the work of the Commission and the expert group.

Amendment 35

Proposal for a regulation

Article 8 – paragraph 3 a (new)

Text proposed by the Commission

Amendment

3 a. For carbon farming, when preparing those delegated acts the Commission shall also consult experts involved in the carbon farming projects currently in place and farmers representatives

Or. en

Justification

Several farmers, experts, carbon certification schemes and LIFE projects representatives are currently actively working on carbon farming on the ground, their input is necessary

Amendment 36

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. Groups of operators shall also specify how advisory services on carbon removal activities are provided, in particular to small-scale carbon farming operators.

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. Groups of operators shall also specify how advisory services on carbon removal activities are provided, 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.

Or. en

Justification

A clearer link to CAP advisory services

Amendment 37

Proposal for a regulation

Article 9 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

1 a. For carbon farming, agricultural parcel registered in the Identification system for agriculture parcels 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.

Or. en

Justification

A clearer link to the CAP and the LPIS system that would also better prevent double accounting

Amendment 38

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 may 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 maximum price for certification audit set in relation to total net carbon removal benefit of operator or group of operators. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17.

Or. en

Justification

A proposal to set pricing guidelines, otherwise the certification can get prohibitively expensive, especially for small farmers

Amendment 39

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 .

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

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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).

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).

Or. en

Justification

In order not to create a double structure of accreditation alongside the CAP one and in order to use the existing means and personnel, CAP paying agencies shall be used to accredit certification bodies

Amendment 40

Proposal for a regulation

Article 12 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

1 a. 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.

Or. en

Justification

A clearer link to the CAP and the LPIS system that would also better prevent double accounting

Amendment 41

Proposal for a regulation

Article 18 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

2 a. 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 biogenic 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.

Or. en

Justification

The emissions reduction resulting from the application of the certification scheme should ultimately count towards EU climate targets and be included in the ETS. The specific reference is in Article 4a of the text approved in trilogues in 2021, to be added when the text comes into force

Amendment 42

Proposal for a regulation

Article 18 – paragraph 2 b (new)

Text proposed by the Commission

Amendment

2 b. 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.

Or. en

Justification

The carbon removals resulting from the application of the certification scheme should ultimately count towards the LULUCF target The specific reference will be added once the revision of LULUCF comes into force.

Amendment 43

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(k a) quality criteria for biogenic emission reductions in scope of carbon farming;

Or. en

Justification

Climate mitigation covers carbon removals and GHG emission reductions. To assess the quality of a climate mitigation effort, certification of GHG emission reductions would be needed alongside certification of carbon removals. In the case of carbon farming, GHG emission reduction and carbon removal often go hand in hand. Many carbon farming practices reduce GHG emissions and contribute to removing carbon. Being able to prove both through certification would support the climate mitigation effort required.

Amendment 44

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(k b) rules for the verification and certification of biogenic emission reductions;

Or. en

Justification

Climate mitigation covers carbon removals and GHG emission reductions. To assess the quality of a climate mitigation effort, certification of GHG emission reductions would be needed alongside certification of carbon removals. In the case of carbon farming, GHG emission reduction and carbon removal often go hand in hand. Many carbon farming practices reduce GHG emissions and contribute to removing carbon. Being able to prove both through certification would support the climate mitigation effort required.

Amendment 45

Proposal for a regulation

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

Text proposed by the Commission

Amendment

(k c) standard setting for the price point of emission offsets

Or. en

Justification

In a market where a t of CO2 represents the accounting value of any credit, regardless methodology, our biggest risk is losing the demand for credits to cheap offsets from cheap interventions, which cost less than reducing the emissions of the company buying the credits. If the EU is serious about these ambitions, a standard needs to be set for the price point of emission offsets, because these European removal projects will not be able to compete with the international voluntary market. This price isn't low because of lacking methodologies, it's low because of a lacking willingness to pay.

Amendment 46

Proposal for a regulation

Annex I – paragraph 1 – point k d (new)

Text proposed by the Commission

Amendment

(k d) assessment of carbon storage permanence per carbon farming activity, discount rate applicable and minimum monitoring period required

Or. en

Justification

The Commission should provide an assessment of the carbon storage permanence in the certification methodology per activity, based on which the discount rate shall be set.

Amendment 47

Proposal for a regulation

Annex II – paragraph 1 – point i

Text proposed by the Commission

Amendment

(i) net carbon removal benefit referred to in Article 4(1);

(i) net carbon removal benefit referred to in Article 4(1) or 4(2);

Or. en

Justification

A carbon farming project must integrate the entire carbon cycle, including its storage, reduction or avoidance

Amendment 48

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);

Or. en

Justification

A carbon farming project must integrate the entire carbon cycle, including its storage, reduction or avoidance.

Amendment 49

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 Article 4(2) point (b);

Or. en

Justification

A carbon farming project must integrate the entire carbon cycle, including its storage, reduction or avoidance

Amendment 50

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 Article 4(2) point (c);

Or. en

Justification

: A carbon farming project must integrate the entire carbon cycle, including its storage, reduction or avoidance

Amendment 51

Proposal for a regulation

Annex II – paragraph 1 – point l a (new)

Text proposed by the Commission

Amendment

(l a) biogenic emission reduction, as referred to in Article 4(2) point (d)

Or. en

Justification

A carbon farming project must integrate the entire carbon cycle, including its storage, reduction or avoidance