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REPORT (COM(2022)0672 – C90399/2022 – 2022/0394(COD))

On the proposal for a regulation of the European Parliament and of the Council establishing a Union certification framework for carbon removals

A-9-2023-0329

Committee on the Environment, Public Health and Food Safety · Rapporteur: Lídia Pereira

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Parliament's amended version of the Commission proposal sets up a voluntary Union certification framework for carbon removals, carbon farming and carbon storage in products. It lays down quality criteria, rules on the issuance and use of certified units, and rules for verification and certification. It requires activities to be additional, quantified against a baseline, monitored, and covered by liability mechanisms for reversal. It sets minimum sustainability requirements and requires independent third-party auditing, a public Union registry and recognised certification schemes. It asks the Commission to adopt delegated acts setting certification methodologies and to report on Union targets for permanent removals and land-based sequestration.

Committee position. The committee proposes to amend the Commission proposal by broadening it to carbon farming and carbon storage in products, adding rules on issuance and use of units, strengthening monitoring, liability and sustainability requirements, and establishing a Union registry and a Platform.

Key points

  1. The framework covers carbon removals, carbon farming and carbon storage in products, and does not apply to emissions falling within the scope of Directive 2003/87/EC, except certain zero-rated biomass storage.
  2. It also applies where a legally binding agreement with an EEA member or a third country bordering the Union provides for geological storage of CO2 captured in the Union under the same legal requirements as Directive 2009/31/EC.
  3. Carbon removals must be quantified accurately, using standardised baselines, and must comply with rules on issuance and use of units.
  4. Activities must be additional, going beyond statutory requirements at the level of the individual operator and needing the incentive effect of certification to become financially attractive.
  5. Operators must monitor and mitigate reversal risks, designate a liable person, and face suspension or cancellation of units and a corrective penalty if a reversal is not addressed.
  6. Carbon farming and carbon storage in products must meet monitoring periods, and their net benefit is considered released at the end of monitoring unless re-certified.
  7. Activities must meet minimum sustainability requirements, with carbon farming generating biodiversity co-benefits and not harming food security or leading to land grabbing.
  8. The Commission must adopt delegated acts establishing certification methodologies for each type of activity, based on impact assessments and public consultations.
  9. A Platform on Carbon Removal, Carbon Farming and Carbon Storage in Product Activities is established to advise the Commission.
  10. Certification bodies must be accredited, independent, and supervised by Member States; certification schemes must be recognised by the Commission for up to five years.
  11. The Commission must establish a public Union registry with information on certified activities, certificates and units.
  12. The Commission must report on Union targets for permanent carbon removals and land-based sequestration, and on options to increase emission reductions in the food supply chain.

Who is affected

  • Operators and groups of operators carrying out carbon removal, carbon farming or carbon storage in products activities, who must meet certification requirements.
  • Farmers, forest owners or managers, and small and medium-sized enterprises, for whom administrative burden should be minimised.
  • Certification bodies and certification schemes, which must be accredited, independent and recognised by the Commission.
  • Member States and regional authorities, which must supervise certification bodies and notify certification schemes.
  • Local communities and indigenous people affected by carbon farming activities, whose rights must be respected.

Figures and deadlines

  • Carbon farming activities must last at least five years.
  • Carbon storage in products must store carbon for at least five decades.
  • Re-certification audits at least every 5 years for carbon farming and at least every 10 years for other activities.
  • Baselines must be reviewed and updated by the Commission at least every five years.
  • Certification scheme recognition decisions are valid for no more than 5 years.
  • Public consultations on draft delegated acts must last at least four weeks.
  • The Commission must publish guidance for carbon farming operators within 6 months of entry into force.
  • The Commission must report on Union targets for permanent removals and land-based sequestration within 12 months of entry into force.

Legal basis: Article 294(2) and Article 192(1) of the Treaty on the Functioning of the European Union.