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DRAFT OPINION (COM(2022)672 – 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

AGRI-PA-746718

Committee on Agriculture and Rural Development · Rapporteur: Martin Hlaváček

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The Committee on Agriculture and Rural Development's draft opinion proposes amendments to the Commission's proposed regulation establishing a Union certification framework for carbon removals. It proposes to decouple carbon removals and carbon farming in the legal text, and to add carbon farming throughout the regulation. It proposes that carbon farming certification cover biogenic emission reductions, such as methane and nitrous oxide, alongside carbon removals, and that the Commission set permanence assessments and discount rates per activity. It proposes using existing EU structures: Member States' paying agencies as national accreditation authorities and the LPIS database for registration of carbon farming commitments. It proposes that the Commission adopt certification methodologies within 6 months of entry into force, consult existing carbon farming experts and farmers, and set a maximum price for certification audits. It proposes that the Commission consider how biogenic emission reductions from carbon farming count towards the Union 2040 climate target and emissions trading, and how carbon removals count towards the 2030 net greenhouse gas removals target.

Committee position. The committee's rapporteur proposes to amend the Commission proposal to decouple carbon removals and carbon farming, add carbon farming throughout the regulation, include biogenic emission reductions, use existing EU structures for administration, and set permanence assessments and price standards.

Key points

  1. The draft opinion proposes to decouple carbon removal activities and carbon farming activities in the legal text because of their different permanence of storage and legal base.
  2. It proposes adding carbon farming throughout the regulation, including the title, objective, scope, definitions, eligibility and certification rules.
  3. It proposes that carbon farming certification cover biogenic emission reductions, such as methane and nitrous oxide, and that a new definition and unit for biogenic emission reduction be added.
  4. It proposes that the Commission establish, for each carbon farming activity, an approximation of storage permanence and a discount rate, and that carbon be considered released at the end of the permanence assessment period unless the operator renews it.
  5. It proposes that carbon farming additionality be based on statutory management requirements and GAEC standards under Regulation (EU) 2021/2115 and on minimum requirements for fertiliser, plant protection products and animal welfare.
  6. It proposes that carbon farming activities benefit at least one of several actions, including climate change mitigation and adaptation, water protection, soil protection, biodiversity protection and reduced pesticide and fertiliser use.
  7. It proposes that the Commission adopt delegated acts establishing certification methodologies within 6 months of entry into force, taking into account soil and climate diversity across Member States.
  8. It proposes that the Commission consult experts involved in existing carbon farming projects and farmers' representatives when preparing delegated acts, and use existing standards and best practices.
  9. It proposes that Member States' paying agencies act as national accreditation authorities for carbon farming and that carbon farming commitments be registered in the Identification system for agricultural parcels.
  10. It proposes that parcels already certified in a different carbon removal or carbon farming scheme not compliant with the regulation be ineligible for certification.
  11. It proposes that the Commission set a maximum price for certification audits in relation to the total net carbon removal benefit, and standard setting for the price point of emission offsets.
  12. It proposes that the Commission consider how biogenic emission reductions from carbon farming count towards the Union 2040 climate target and emissions trading, and how carbon removals count towards the 2030 net greenhouse gas removals target.

Who is affected

  • Farmers, forest owners and managers, who would be recognised for carbon farming actions and could use CAP advisory services.
  • Small-scale operators, for whom administrative burden would be minimised and simplified methods provided.
  • Member States' paying agencies, which would take over the role of national accreditation authority for carbon farming.
  • Certification bodies and schemes, which would operate under the framework and be accredited by paying agencies.
  • Experts and farmers involved in existing carbon farming schemes, who would be consulted on methodologies.

Figures and deadlines

  • 6 months after entry into force of the regulation: deadline for the Commission to adopt delegated acts establishing certification methodologies.
  • 31 July 2026: date by which the Commission will submit a report referred to in Directive 2003/87/EC.
  • 12 months of entry into force of the regulation: deadline for the Commission report referred to in Regulation 2018/841.
  • More than 80% of the agriculture sector's emissions are composed of N2O and CH4.

Legal basis: Article 43(2) and 192(1) of the Treaty on the Functioning of the European Union.