EUROPEAN
COMMISSION

Brussels, 30.11.2022
COM(2022) 672 final
2022/0394 (COD)

Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
establishing a Union certification framework for carbon removals{SEC(2022) 423 final} - {SWD(2022) 377 final} - {SWD(2022) 378 final}

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EXPLANATORY MEMORANDUM
1.

CONTEXT OF THE PROPOSAL•

Reasons for and objectives of the proposal

Limiting the global average temperature increase to below 1.5 °Celsius (C) will require deep
cuts in global greenhouse gas (GHG) emissions throughout the forthcoming decades. To
achieve this, first we need to improve the efficiency of our buildings, transport modes andindustries, to move to a circular economy, and to massively scale up renewable energy.
Second, we need to recycle carbon from waste streams, from sustainable sources of biomass
or directly from the atmosphere, to use it in place of fossil carbon in the sectors of theeconomy that will inevitably remain carbon dependent, for instance through carbon capture
and use (CCU) and sustainable synthetic fuels. In parallel, increasing amounts of carbon
dioxide (CO2) will have to be captured and removed each year from the atmosphere by carbon
farming and industrial removal activities or projects to compensate hard-to-abate emissions
from sectors like agriculture, cement, steel, aviation or maritime transport, with the view toreach climate neutrality.
At a global scale, the latest report 1 by the International Panel on Climate Change (IPCC) point
towards a decreasing likelihood of limiting global warming to 1.5°C unless rapid GHG
emission reductions occur. The IPCC report clearly states that ‘the deployment of carbon
dioxide removal to counterbalance hard-to-abate residual emissions is unavoidable if net zero
CO2 or GHG emissions are to be achieved’. This will mean the large-scale deployment ofsustainable activities for capturing CO2 from the atmosphere and durably storing it ingeological reservoirs, terrestrial and marine ecosystems, or products.
The European Climate Law 2 provides for the EU to become climate neutral by 2050. Thisrequires that GHG emissions are significantly reduced, and that the unavoidable emissions
and removals should be balanced within the European Union at the latest by 2050, with theaim to achieve negative emissions thereafter. To achieve this objective, both natural
ecosystems and industrial activities should contribute to removing several hundred million
tonnes of CO2 per year from the atmosphere. Today and with current policies, the EU is not
on track to deliver these quantities: carbon removals in natural ecosystems have been
decreasing in recent years, and no significant industrial carbon removals are currently taking
place in the Union.
In line with the scenarios assessed by the IPCC, the European Commission has announced in
the Circular Economy Action Plan 3 from March 2020 that it will develop an effective
certification framework for the certification of carbon removals to incentivise the uptake ofcarbon removal and to increase circularity of carbon, in full respect of the biodiversity and thezero-pollution objectives.
The main objectives of this initiative are: (i) to ensure the high quality of carbon removals in
the EU, and (ii) to establish an EU governance certification system to avoid greenwashing bycorrectly applying and enforcing the EU quality framework criteria in a reliable andharmonised way across the Union. These actions are necessary to trigger action in the
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IPCC Working Group III (2022), Technical Summary. In: Climate Change 2022: Mitigation of Climate
Change. Sixth Assessment Report.
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 (OJ L 243, 9.7.2021, p. 1).
COM(2020) 98 final.

1ENdeployment of carbon removals and to build any future policy in this area, in view of the needto remove hundreds of million tonnes of CO2 per year. This will support the achievement of
the 2050 climate neutrality objective set in the European Climate Law, as well as the otherenvironmental objectives of the European Green Deal Communication 4.
•

Consistency with existing policy provisions in the policy area

Under the proposal for amending the Regulation on Land Use, Land Use Change, andForestry (LULUCF) 5, the European Commission proposed – for the first time – a separate
land-based net removals target of -310 million tonnes of CO2 -equivalent by 2030. The EUwide target is to be implemented through binding national targets for the LULUCF sector,
requiring Member States to step up ambition for their land use policies. This proposal enables
to channel more effective and result-based support toward carbon farming activities that cancontribute to the achievement of this target. The Commission has also proposed to increase
the size of the Innovation Fund 6, which is financed by the revenues from the EU Emissions
Trading System (EU ETS) 7, thereby helping businesses invest in innovative clean
technologies, including those generating carbon removals.
The 2021 Commission’s Communication on Sustainable Carbon Cycles 8 stresses theimportance of enabling a business model that rewards land managers for carbon sequestrationin full respect of ecological principles (i.e. ‘carbon farming’), and of creating an EU internalmarket for capture, use, storage and transport of CO2 through innovative technologies. The
communication also defines an action plan to achieve the following aspirational goals forcarbon removals: by 2028, all land managers should have access to verified emission andremoval data to measure carbon farming practices, and all CO2 captured, transported, usedand stored through industrial activities should be reported and accounted; by 2030, carbon
farming approaches should contribute to reaching the LULUCF target of -310 Mt CO2 eq net
removals; and industrial technologies should remove annually at least 5 Mt CO2 eq by 2030.
This proposal is also in line with the final Proposals of the Conference on the Future ofEurope 9, in particular Proposal 1 that explicitly aims to ‘Introduce a certification of carbon
removals, based on a robust, solid and transparent carbon accounting’ (measure 5).
Furthermore, the 2022 Communication on Greening the Commission 10 announced that, in
addition to the ambitious set of GHG reduction actions, the Commission will have to rely also
on carbon removal to neutralise unavoidable emissions and achieve net zero GHG emissions
by 2030.
The certification framework described in this proposal is designed to build on the following
existing climate change legislation:•

The directive on the geological storage of CO2, called CCS Directive 11, establishes
the overall legal framework for the environmentally safe geological storage of CO2.

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COM(2019) 640 final
COM(2021) 554 final.
C(2019) 1492 final.
Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing ascheme for greenhouse gas emission allowance trading within the Community and amending Council
Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).
COM(2021) 800 final.
Conference on the Future of Europe, Report on the final outcome, May 2022.
C(2022) 2230 final
Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on thegeological storage of carbon dioxide and amending Council Directive 85/337/EEC, European

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Activities storing CO2 from an ETS installation in a storage site permitted under the
CCS Directive are explicitly included in the EU ETS Directive and EU ETS
allowances must be surrendered in the event of CO2 leakages. The proposed
certification framework will ensure that the quantification of carbon removals forindustrial activities such as bioenergy-based CCS (BECCS) 12 and Direct Air Carbon
Capture and Storage (DACCS) is in line with the rules set out in the Commission
Implementing Regulation (EU) 2018/2066 13 on the monitoring and reporting of GHG
emissions under the ETS and the detailed EU methodologies developed by theCommission 14 for the quantification of GHG emission avoidance of BECCS andDACCS projects under the Innovation Fund 15.
•

For carbon farming and carbon storage products, the LULUCF Regulation 16 provides
a blueprint for accurate monitoring and reporting of carbon removals in line with
IPCC guidelines, and in synergy with policies on biodiversity, zero pollution,
renewable energy and climate adaptation. The rules laid down under the LULUCF
Regulation encourage monitoring land use in a geographically-explicit way, at low
cost and in a timely fashion, for example through digital databases, Geographic
Information Systems (GIS) and remote sensing, including the Copernicus Sentinel
satellites and services (e.g. Climate and Land Services), or commercially available
services.

•

Consistency with other Union policies

The EU certification framework on carbon removals will either build on or play an importantrole to enable the following Union policies:
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The proposed Nature Restoration Law 17 sets out the goal that 20% of the EU’s landand sea should be covered by restoration measures by 2030 and that all ecosystems
in need of restoration should be covered by restoration measures by 2050. There aremany synergies among carbon removal activities, particularly carbon farming, andnature restoration measures. The proposed certification framework for carbon
removals will contribute to achieve the restoration targets and fulfil the obligations
set out in the Nature Restoration Law. For instance, carbon farming activities thatenhance carbon storage can contribute to meeting the obligation to ensure an
increasing trend at national level of the stock of organic carbon in forest ecosystems
and in cropland mineral soils in agricultural ecosystems. They can also support the
obligation to put in place restoration measures for organic soils in agricultural use
Parliament and Council Directives 2000/60/EC, 2001/80/EC, 2004/35/EC, 2006/12/EC, 2008/1/EC andRegulation (EC) No 1013/2006 (OJ L 140, 5.6.2009, p. 114).
For BECCS deployment, safeguards are necessary to take into account the limits and availability ofsustainable biomass in order to avoid excessive demand of biomass for energy with negative effects on
carbon sinks and stocks, biodiversity, air quality and the bioeconomy.
Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the monitoring andreporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliamentand of the Council and amending Commission Regulation (EU) No 601/2012 (OJ L 334, 31.12.2018, p.
1).
Call for proposals Annex C: Methodology for calculation of GHG emission avoidance.
https://climate.ec.europa.eu/eu-action/funding-climate-action/innovation-fund_en
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 the2030 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).
COM(2022) 304 final.

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ENconstituting drained peatlands. The proposed Nature Restoration Law and this
proposal will therefore reinforce each other, contributing to both climate andbiodiversity policies.
••

The Common Agricultural Policy (CAP) provides for support to farmers who
commit to undertake specific environmental and climate practices or investments.
This policy also includes some environmental and climate conditions (called Good
Agricultural and Environmental Conditions, GAECs) to be respected by farmers
when receiving CAP income support. These conditions go beyond statutory
requirements. Certain conditions are relevant for sequestration and carbon protection
in soil such as in grassland and peatland. In addition, the CAP can help with theuptake of certification by covering upfront investments and by promoting relevant
practices at farm level. The EU carbon removal certification framework willcontribute to improving the GHG quantification of supported practices and GHGs
inventories of national land sector. Through voluntary markets development it canensure longer-term protection of carbon stocks and actions in land not supported by
the CAP. Public certification schemes, developed by Member States, could apply for
EU recognition under this proposal in order to implement the EU carbon removal
certification framework, including the certification methodologies laid down in this
proposal. Furthermore, this proposal will allow disclosing non-CO2 emission
reductions as co-benefits of carbon removals.

•

The Renewable Energy Directive 18 includes a set of sustainability criteria forbioenergy, which are implemented by either national competent authorities or private
certification schemes recognised by the Commission. These schemes
could potentially certify also the compliance of carbon removal activities with thequality criteria for carbon removals presented in this proposal.

•

The EU Forest Strategy 19 sets out the policy framework to deliver growing, healthy,
diverse and resilient EU forests, which contribute significantly to our biodiversity
ambition, increase removals by natural sinks, secure livelihoods in rural areas andbeyond and support a sustainable forest bioeconomy that relies on most sustainable
forest management practices.

2.

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY•

Legal basis

The proposal is based on Article 192(1) of the Treaty on the Functioning of the European
Union (TFEU), which gives the Union the right to act in order to achieve objectives of its
policy on the environment. The objectives of the Union policy on the environment as definedin Article 191(1) of the TFEU include, inter alia, preserving, protecting and improving thequality of the environment; a prudent and rational utilisation of natural resources andpromoting measures at international level to deal with regional or worldwide environmental
problems, in particular combating climate change.

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Directive 2018/2001/EU.
COM/2021/572 final

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•

Subsidiarity (for non-exclusive competence)

Climate change is a trans-boundary problem. Its effects are global, irrespective of the locationof the sources of greenhouse gas emissions. Therefore, these challenges cannot be solved bynational or local action alone as this is unlikely to lead to optimal outcomes. Coordination at
the European level enhances climate action and can supplement and reinforce national andlocal action effectively; EU action is justified on grounds of subsidiarity, in line with Article
191 of the Treaty on the Functioning of the European Union.
A European framework would be more appropriate than national initiatives in addressing thedifficulty to assess the quality of carbon removals. Such framework would create a levelplaying field within the internal market for the certification of carbon removals, enhancing
comparability and trust. A patchwork of national initiatives in this area would only exacerbate
the problem rather than solving it.
•

Proportionality

This proposal complies with the proportionality principle because it does not go beyond whatis necessary in order to achieve the objectives of establishing a Union certification frameworkfor high quality carbon removals. It provides for quality criteria for carbon removals, thenecessary rules and procedures for certifying and verifying carbon removals and a framework
for recognition of private and public certification schemes.
•

Choice of instrument

The objectives of the present proposal can best be pursued through a Regulation. This will
ensure direct and uniform applicability of the provisions in the Union at the same time.
Requirements are placed on operators of voluntary certification schemes, on Member States inview of recognition of public certification schemes and on the Commission regarding
reporting and review.
3.

RESULTSOF
EX-POSTEVALUATIONS,CONSULTATIONS AND IMPACT ASSESSMENTS•

Ex-post evaluations/fitness checks of existing legislation

STAKEHOLDER

Not Applicable•

Stakeholder consultations

In line with the Better Regulation guidelines, a number of consultation activities took place:•

An online conference on Sustainable Carbon Cycles which took place on 31January
2022;

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A call for evidence running from 7 February until 2 May 2022, which received 231
responses;•

An open public consultation running from 7 February until 2 May 2022, which
received 396 responses.

Overall, the public consultation activities demonstrated strong general support for a regulatory
initiative covering the creation of a certification framework for carbon removals. Most
stakeholders advocated for the initiative to cover a wide range of carbon removals options andto take into account aspects such as: ensuring precise, accurate and timely measurement forremovals; ensuring that strong action to reduce emissions is not undermined by shifting focus

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on carbon removals; providing sufficient guarantees for the duration of carbon storage and theprevention of reversals.
The main criteria that stakeholders considered important for carbon removals included therobustness of monitoring, reporting and verification aspects, the potential for deployment atlarge scale, technical readiness and economic feasibility, and the potential for environmental
co-benefits. The majority of respondents agreed that establishing a robust and credible
certification system for carbon removals was the first essential stepping stone towards
achieving a net contribution from carbon removals in line with the EU climate-neutrality
objective.
Respondents indicated that the key objectives for the certification of carbon removals should
be: allowing comparability and competition between different carbon removals activities;
increasing the transparency and levelling the playing field of voluntary carbon markets; and,providing better public incentives for nature-based and industrial carbon removals within EU
and national funding programmes.
According to the majority of respondents, the role of the EU should be to establish
comprehensive quality requirements for carbon removals, ensuring correct quantification ofcarbon removals, additionality, long-term storage and environmental sustainability. A
summary of the findings from the stakeholder consultations are presented in Annex 2 of the
Impact Assessment to this Regulation.
•

Collection and use of expertise

An external consortium of experts was tasked to carry out a technical assistance study toinform the preparation of the proposed Regulation on carbon removals and the related impact
assessment. The study delivered a review of existing mechanisms and schemes for thecertification of carbon removals and a synoptic assessment of the various carbon removal
activities, including permanent removal, carbon storage products and carbon farming. On
behalf of the Commission, the external consortium organised a number of outreach events,
including the Conference on Sustainable Carbon Cycles, and helped assessing the replies tothe stakeholder consultation. Finally, the technical assistance study provided part of the data
underpinning the analysis of the policy options set out in the impact assessment.
•

Impact assessment and opinion of the Regulatory Scrutiny Board

The Impact Assessment accompanying this proposal assessed different policy options toaddress three main problems impacting the future development of carbon removals.
The first problem is the difficulty to assess and compare the quality of carbon removals,
which creates significant search costs for potential financiers of carbon removals. This is atypical ‘market failure’, which creates a risk that financial support goes to carbon removal
activities that cannot be relied upon as effective mitigation actions. This problem has two
drivers:

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1.

The certification of carbon removals is much less common than that of emission
reductions, and it involves several methodological challenges. Different certification
schemes propose different methodologies to quantify total and additional carbon
removals, to incentivise the long-term storage of carbon, and to encompass broader
sustainability aspects such as the environmental impacts (e.g. biodiversity loss,
pollution etc.) of the carbon removal activity.

2.

Carbon removal activities (i.e. permanent removal, carbon storage products andcarbon farming) are very heterogeneous in terms of their maturity, cost-effectivenessand related monitoring costs, and pose different challenges for certification.

6ENTo address this problem, this initiative aims to guarantee the quality of all carbon removals
certified in the EU through certification methodologies that are tailored to the specificcircumstances of different carbon removal activities.
To this end, this initiative proposes an EU certification framework for carbon removals basedon four quality criteria (hereafter called QU.A.L.ITY), indicating how to ensure
QUantification, Additionality and baselines, Long-term storage and sustainabilITY. The
Impact Assessment identifies a number of best practices for each of those QU.A.L.ITY
criteria, while recognising that the certification approach for each criterion will differ acrosscarbon removal activities.
In a second step, detailed certification methodologies to implement the QU.A.L.ITY criteria
across the different carbon removal activities will have to be developed. In this step, specificrules will be tailored to the characteristics of the different types of carbon removal activities:
for instance, the rules will recognise the strong guarantees for permanence offered bysolutions storing carbon in geological formations, while enhancing co-benefits for carbon
farming activities. In this respect, the Impact Assessment compares two Quality options:•

Option Q1: certification schemes develop methodologies in line with the
QU.A.L.ITY criteria and submit them for recognition to the responsible publicauthority;•

Option Q2: the Commission develops the methodologies in close consultation withan expert group.

The analysis concludes that option Q2 has the largest potential to guarantee the quality ofcarbon removals and to ensure their comparability, while minimising the administrative costsof developing or approving detailed certification methodologies.
The second problem is that many stakeholders do not trust carbon removal certificatesbecause certificates may be generated through non-transparent and unreliable certification
processes which certify activities that are not delivering true climate and sustainability
benefits. To tackle this problem, certification schemes should put in place transparent androbust rules and procedures to mitigate the risks that the certification process is not able todetect low-quality removals, that the carbon removal activities are not actually delivering theremovals as planned, and that the same activity is certified twice, or that the same certificate
is used twice.
The third problem is that the providers of carbon removals face barriers to access finance.
This problem is driven by the fact that there is a wide variety of ways to use carbon removal
certificates (e.g. public funding, corporate sustainability reporting, eco-labels, voluntarycarbon markets etc.). This diversity creates transaction costs for those that want to have theircarbon removal activity certified, such as search costs (the time and effort spent to understandthe quality of the certification procedures of a given scheme) and switching costs (the cost of
trying to raise other complementary or alternative types of funding, which is likely to requirechanging their operations and providing a different set of evidence and information).
To address the second and the third problems, certification schemes should comply withharmonised certification requirements to ensure transparency and build trust:
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Scheme management: certification schemes should be operated on the basis ofreliable and transparent procedures (e.g. internal management and monitoring,
complaints and appeal management, stakeholder consultation, transparency andpublication of information, etc.);

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2.

Independent verification: the compliance of the carbon removals with the
QU.A.L.ITY criteria should be verified by third-party auditors; and,3.

Full disclosure: all information on the certified carbon removals should be publicly
available and traceable through public registries.

In line with these transparency criteria, a process to recognise certification schemes is set out
and only recognised certification schemes can be used by operators (i.e. owners of carbon
removal activities) to demonstrate compliance with the QU.A.L.ITY criteria and the relevant
certification methodologies.
In this context, the Impact Assessment compares two Governance options as to who would be
responsible for recognising certification schemes: the Member States (option G1) or theCommission (option G2). The analysis concludes that option G2 performs best in terms ofguaranteeing a robust and harmonised certification process and promoting the internal market
for carbon removal certification, while minimising the administrative costs for publicauthorities.
In conclusion, the preferred policy option is one where the Commission: (i) develops
certification methodologies, in consultation with experts and stakeholders; and (ii) harmonises
the implementation of the certification framework and the QU.A.L.ITY criteria throughrecognised certification schemes.
In the Impact Assessment, the Commission also assessed the consistency of the proposal withthe objectives set out in the European Climate Law, as provided for in Article 6(4) of theEuropean Climate Law. The Commission found that carbon farming approaches can help toachieve the separate 2030 target proposed for the LULUCF sector with the Fit-for-55
legislative package (-310 Mt CO2 eq), therefore exceeding the contribution of LULUCF
carbon removals to the -55% economy-wide target established in the European Climate Law(capped at -225 Mt CO2 eq). The European Climate Law also includes a target for the Union
to become climate-neutral by 2050 and to achieve negative emissions thereafter, but theUnion needs to increase the uptake of carbon removal activities to achieve this objective. The
Impact Assessment analyses policy options to address the barriers that undermine the uptakeof effective carbon removal activities, that should not deter action to reduce greenhouse gas
emissions.
The Regulatory Scrutiny Board provided a positive opinion on the Impact Assessment andprovided a list of recommendations to improve the report in view of better demonstrating thatthe absence of a reliable certification framework represents the main obstacle to thedevelopment of carbon removal activities as well as of better presenting transparently allpolicy choices regarding the methodology and governance.
The following aspects were consequently integrated in the finalised version of the impact
assessment report:EN•in the introduction, the context of the initiative (i.e. role of carbon removals in the2050 climate neutrality objective and in the current policy baseline) and thevoluntary nature of the initiative were made clearer;•in the problem definition, new references have been added to confirm the existence
and the scale of the identified problems (in particular the lack of trust) and tohighlight the importance of internationally harmonising framework in the views
expressed by stakeholders;•in the section about objectives, it was clarified that the shortlisting of the four
QU.A.L.ITY criteria follows a general consensus about what constitutes high-quality

8ENcertification according to most existing certification methodologies, and thepresentation of the criteria in the section describing the policy options now includes
more arguments from the dedicated annexes;•

to take into account the voluntary nature of the framework, several clarifications
were added (e.g. the objective of “level-playing field” has been rephrased as“harmonisation”);•

the section about discarded policy options better explains why a mandatory use of thecertification framework policy was discarded;•

the section on the assessment of the impacts cites the voluntary nature as a risk that
could undermine the success of the initiatives, and measures to mitigate this risk;•

the assessment of policy options better identifies the barriers to upscale of carbon
removal activities, and explains how the certification framework will address thesebarriers; this section also clarifies the uncertainty related to the qualitative statements
about expected benefits and costs;•

the section on the one-in-one-out approach has been moved from an annex to themain text;•

the section on monitoring and evaluation of the initiative includes more elaborated
operational objectives.

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Regulatory fitness and simplification

Not Applicable•

Fundamental rights

Not Applicable
4.

BUDGETARY IMPLICATIONS

Major budgetary implications for the Union concern the preparation of the non-legislative acts
and operation of the Expert Group on Carbon Removals.
The proposal provides for a number of delegated and implementing acts to be prepared inparallel following the entering into force of the proposed Regulation. Most importantly, it will
be necessary to adopt delegated acts setting out the certification methodologies for different
carbon removal activities (e.g. for permanent removal, carbon farming and carbon storage
products).
For the preparation of these highly technical non-legislative acts, the Commission will be
assisted by an Expert Group on Carbon Removals. The Group will include approximately 70
members and could involve a number of sub-groups, including additional expertise. It will be
operated by the Commission with the help of an external contractor.
In addition, budgetary implications for Commission are associated to the recognition processof public or private certification schemes that would be responsible to implement thecertification framework in one or more Member States. Budgetary implications are also
foreseen for those Member States that intend to establish and operate a national certification
scheme, including the supervision of independent certification bodies and the establishment
and operation of a national registry.
The legislative financial statement shows the detailed budgetary implications and the humanand administrative resources required by this Proposal.

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5.

OTHER ELEMENTS•

Implementation plans and monitoring, evaluation and reporting arrangements

In accordance with the Better Regulation guidelines published in November 2021 and inparticular tool 38, the Commission will draw up an implementation strategy after thelegislative proposal has been adopted by the co-legislators. It will present the different
compliance promotion tools to be used and will include aspects related to digital
implementation.
•

Detailed explanation of the specific provisions of the proposal

The provisions and structure of the proposed Regulation corresponds to the objective of theinitiative to create a transparent and credible certification framework for carbon removals
with high climate and environmental integrity, in order to support physical and legal persons
that are willing to make the extra effort, beyond reducing as much as possible their GHG
emission, and bring their activities to the level of sustainability, within the context of theincreased climate ambition stated in the European Green Deal and the objective of the 2050
climate neutrality set out in the European Climate Law.
The key provisions of the proposed Regulation are the following:
The objective and scope of the Regulation is defined in Article 1. This proposal aims tofacilitate the deployment of high quality carbon removals through a voluntary Union
certification framework. This Article also defines the overall structure of the proposal, which
consists of three pillars: the first sets out the four quality criteria, the cumulative complianceof which makes the carbon removals eligible for certification. The second pillar determines
the key elements of the verification and certification process. The third pillar provides rules
for the functioning of the certification schemes that are responsible for implementing theUnion certification framework.
Article 2 provides for the key terminology necessary to complete the provisions of the
proposed Regulation, in particular the definitions of carbon removals and carbon removal
activity.
Article 3 identifies the two conditions for carbon removals to be eligible under the Union
certification framework: first, to be generated by carbon removal activities that meet thequality criteria; and, second, to be verified by an independent certification body.
The first pillar of the proposed Regulation is defined in Articles 4 to 8. Article 4 establishes
rules for the quantification of the net carbon removal benefit against a baseline, whereas
Articles 5, 6 and 7 set out the quality criteria on additionality, long-term storage andsustainability of carbon removal activities. Article 8 provides the empowerment forCommission delegated acts, which will establish tailored certification methodologies for theassessment of compliance with the quality criteria. Annex I lists the elements to be includedin those certification methodologies.
The second pillar of the proposed Regulation regarding the certification of compliance is set
out in Articles 9 and 10.
Article 9 defines the key elements of the certification process which is composed of two steps.
In an initial stage, an operator submits comprehensive information concerning the carbon
removal activity and its expected compliance with the quality criteria to a certification body.
The certification body carries out an audit to verify the operator’s claims, issues a certification
audit report and – if the quality criteria are met – a certificate.

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In a second stage, the certification body carries out a re-certification audit to verify that the
carbon removal activity has been implemented correctly and in full compliance with thequality criteria, and issues a re-certification audit report and an updated certificate, on thebasis of which the certification scheme issues and registers the certified carbon removal units.
Annex II lists the minimum information to be included in the certificate.
Article 10 sets minimum conditions for certification bodies to ensure their competence tocarry out the certification audits and their independence and impartiality. It also sets an
obligation for the Member States to supervise the operation of certification bodies.
The third pillar regarding the certification schemes is determined in Articles 11 to 14. Article
11 sets the obligation for operators to use certification schemes, recognised by theCommission, to demonstrate compliance with the quality criteria. This article lays down also
a number of requirements for the functioning of the certification schemes, including measures
to ensure the good governance, transparency, and accountability.
Article 12 imposes the obligation for certification schemes to set up and maintain public
registries for evidence of carbon removal activities and carbon removal units. It is of key
importance that registries use automated systems and are interoperable in order to prevent
fraud and avoid double counting.
Article 13 provides the legal basis for the recognition of certification schemes throughCommission decisions and Article 14 prescribes reporting requirements on certification
schemes.
Article 18 provides for a review of the Regulation: for a first time three years after its entering
into force and not later than by the end of 2028, and then at regular intervals after eachstocktake exercised as laid down in the Paris Agreement.

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2022/0394 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
establishing a Union certification framework for carbon removals
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular
Article 192(1) thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national Parliaments,
Having regard to the opinion of the European Economic and Social Committee 20,
Having regard to the opinion of the Committee of the Regions 21,
Acting in accordance with the ordinary legislative procedure,
Whereas:(1)

Under the Paris Agreement adopted under the United Nations Framework Convention
on Climate Change 22 ('the Paris Agreement'), the 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 Union and its Member States are Parties to the Paris
Agreement and are strongly committed to its implementation by reduction ofgreenhouse gas emissions and increase in carbon removals.

(2)

At a global scale, the latest report 23 by the International Panel on Climate Change(IPCC) points towards a decreasing likelihood of limiting global warming to 1.5 °C
unless rapid and deep cuts in global greenhouse gas (GHG) emissions occur
throughout the forthcoming decades. The IPCC report also clearly states that ‘thedeployment of carbon dioxide removal to counterbalance hard-to-abate residual
emissions is unavoidable if net-zero carbon dioxide (CO2) or GHG emissions are to beachieved’. This will require the large-scale deployment of sustainable activities for
capturing CO2 from the atmosphere and durably storing it in geological reservoirs,
terrestrial and marine ecosystems, or products. Today and with current policies, theUnion is not on track to deliver the required carbon removals: carbon removals interrestrial ecosystems have been decreasing in recent years, and no significant
industrial carbon removals are currently taking place in the Union.

20

OJ C [...], [...], p. [...]OJ C [...], [...], p. [...]
Approved by Council Decision (EU) 2016/1841 of 5 October 2016 on the conclusion, on behalf of theEuropean Union, of the Paris Agreement adopted under the United Framework Convention on Climate
Change (OJ L 282, 19.10.2016, p. 1).
IPCC Working Group III (2022), Technical Summary. In: Climate Change 2022: Mitigation of Climate
Change. Sixth Assessment Report (link).

21
22

23

EN

1

EN

(3)

The aim of this Regulation is to develop a voluntary Union certification framework forcarbon 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 atool 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 Council 24. The Union also
committed to generate negative emissions after 2050. An important instrument toenhance carbon removals in terrestrial ecosystems is Regulation (EU) 2018/841 of theEuropean Parliament and of the Council 25, 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.

(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 inmeeting the Union climate change mitigation objectives set in international
agreements and in the Union legislation.

(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 ofcarbon removal, carbon removal activities, and other elements of the Union
certification framework.

(6)

This Regulation should set out the requirements under which carbon removals
should be eligible for certification under the Union certification framework. To thisend, carbon removals should be quantified in an accurate and robust way; and theyshould 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 aneutral impact or co-benefit on sustainability objectives. Furthermore, carbon
removals should be subject to independent third-party auditing in order to ensure thecredibility and reliability of the certification process. Mandatory Union carbon pricing
rules established through Directive 2003/87/EC of the European Parliament and of theCouncil 26 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 fromsustainable biomass which are zero-rated in accordance with Annex IV thereto.

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).
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 the2030 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).
Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing ascheme for greenhouse gas emission allowance trading within the Community and amending Council
Directive 96/61/EC (OJ L 275, 25.10.2003, p. 32).

25

26

EN

2

EN

EN

(7)

A carbon removal activity should result in a net carbon removal benefit showing that itdelivers 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 insimilar social, economic, environmental and technological circumstances andgeographical locations should be preferred because it ensures objectivity, minimises
compliance and other administrative costs, and positively recognises the action of firstmovers who have already engaged in carbon removal activities. In the context ofcarbon farming, the use of available digital technologies, including electronic
databases and geographic information systems, remote sensing, artificial intelligenceand machine learning, and of electronic maps should be promoted to decrease the costsof establishing baselines and of monitoring carbon removal activities. However, where
it is not possible to set such a standardised baseline, a project-specific baseline basedon 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.

(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 theimplementation of the carbon removal activity should not be taken into account toquantify 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 cobenefits) can increase the value of the certified carbon removals.

(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 tothe implementation of the carbon removal activity. For instance, in the case ofactivities that deliver permanent carbon storage by injecting carbon underground, theamount of permanently stored carbon should outweigh the energy-related greenhousegas 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 rewetting 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 becaused by carbon leakage.

(10)

Carbon removals should be quantified in a relevant, accurate, complete, consistent andcomparable manner. Uncertainties in the quantification should be duly reported andaccounted 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 andbiodiversity 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 of3EN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.

EN

(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 takeplace 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.

(12)

A standardised baseline should reflect the statutory and market conditions in which thecarbon 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 bepresumed to be additional. Hence, the use of a standardised baseline should simplify
the demonstration of additionality for operators. Therefore, it should reduce theadministrative burden of the certification process, which is particularly important in
the case of small-scale land managers.

(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 thestorage and the different risks of reversal associated with the given carbon removal
activity. Activities that store carbon in geological formations provide enoughcertainties 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 thecertified 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 throughuninterrupted monitoring activities.

(14)

In addition to measures taken to minimise the risk of carbon release into theatmosphere 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 ofgeological storage and CO2 leakage, and relevant corrective measures have alreadybeen laid down by Directive 2003/87/EC and Directive 2009/31/EC of the European

4ENParliament and of the Council 27, those liability mechanisms and corrective measures
should apply to avoid double regulation.
(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 toestablish minimum sustainability requirements to ensure that carbon removal activities
have a neutral impact or generate co-benefits for the sustainability objectives ofclimate 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) 2021/2139 28, and on thesustainability criteria for forest and agriculture biomass raw material laid down in
Article 29 of Directive (EU) 2018/2001 of the European Parliament and of theCouncil 29. Practices, such as forest monocultures, that produce harmful effects forbiodiversity should not be eligible for certification.
(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 shouldtake into account farming practices as referenced in the Communication on
Sustainable Carbon Cycles 30.

(17)

Operators or groups of operators may report co-benefits that contribute to thesustainability objectives beyond the minimum sustainability requirements. To this end,
their reporting should comply with the certification methodologies tailored to thedifferent 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 tailoredcertification methodologies on carbon farming activities that provide significant cobenefits for biodiversity.

(18)

It is appropriate to develop detailed certification methodologies for the different
carbon removal activities in order to apply, in a standardised, verifiable andcomparable way, the quality criteria laid down in this Regulation. Those

27

Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on thegeological 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 andRegulation (EC) No 1013/2006 (OJ L 140, 5.6.2009, p. 114).
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 substantiallyto 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).
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).
Communication from the Commission, Sustainable Carbon Cycles, COM (20221) 800.

28

29
30

EN

5

EN

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, inparticular for small farmers and forest holders. To this end, the Commission should be
empowered to supplement this Regulation by adopting delegated acts establishingdetailed 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 andmethodologies for carbon removal certification, and take into account any relevant
standard and rules adopted at national and Union level.

EN

(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 theirimplementation, verifying their compliance with the quality criteria set out in thisRegulation, 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, theCommission 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.

(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 theirmembers. 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.

(21)

It is appropriate that carbon removal certificates underpin different end-uses, such as
the compilation of national and corporate greenhouse gas inventories, including withregard to Regulation (EU) 2018/841 of the European Parliament and of the Council 31,
the proof of climate-related and other environmental corporate claims (including on
biodiversity), or the exchange of verified carbon removal units through voluntarycarbon offsetting markets. To this end, the certificate should contain accurate andtransparent information on the carbon removal activity, including the total removals
and net carbon removal benefit that comply with the quality criteria set out in thisRegulation. The Commission should be also empowered to adopt delegated acts tofurther specify or amend Annex II which lists the minimum information to becontained 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 the2030 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).

6

EN

(22)

To ensure an accurate, robust and transparent verification, certification bodies
responsible for performing the certification of carbon removal activities should havethe required competences and skills and should be accredited by national accreditation
authorities pursuant to Regulation (EC) No 765/2008 of the European Parliament andof the Council 32. 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 bysupervising the operation of certification bodies that are accredited by national
accreditation authorities, and by informing the certification schemes about relevant
non-conformity findings.

(23)

Certification schemes should be used by operators to demonstrate compliance withthis Regulation. Therefore, certification schemes should operate on the basis ofreliable and transparent rules and procedures and should ensure accuracy, reliability,
integrity and non-repudiation of origin, and protection against fraud of informationand of data submitted by operators. They should also ensure the correct accounting of
the verified carbon removal units, notably by avoiding double counting. 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. To ensure a costeffective certification process, those technical harmonised rules on certification should
also have the objective of reducing unnecessary administrative burden for operators, orgroup of operators, in particular for Small and Medium Enterprises (SMEs), including
small farmers and foresters.

(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 therequirements set out in this Regulation, including with respect to technicalcompetence, reliability, transparency and independent auditing. Such recognition
decisions should be limited in time. To this end, the Commission should be
empowered to adopt implementing acts on the content and processes of Union
recognition of certification schemes.

(25)

The provisions of the United Nations Economic Commission for Europe (UNECE)
Convention on Access to Information, Public Participation in Decision-making andAccess to Justice in Environmental Matters 33 (‘the Aarhus Convention’) regarding
access to information, public participation in decision-making, and access to justice inenvironmental matters, in particular the provisions relating to public participation andto access to justice remain applicable, where relevant.

(26)

Certification schemes should establish and maintain interoperable public registries inorder 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

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 andrepealing Regulation (EEC) No 339/93 (OJ L 218, 13.8.2008, p. 30).
Council Decision 2005/370/EC of 17 February 2005 on the conclusion, on behalf of the European
Community, of the Convention on access to information, public participation in decision-making andaccess to justice in environmental matters (OJ L 124, 17.5.2005, p. 1).

33

EN

7

EN

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 processof 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 theinter-operability of those registries.
(27)

Certification schemes play an important role in providing evidence of compliance with
the quality criteria for carbon removals. It is therefore appropriate for the Commission
to require certification schemes to report 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 reporton 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.

(28)

To enable operators to apply the quality criteria set out in this Regulation in astandardised and cost-effective way, while taking into account the specificcharacteristics of different carbon removal activities, the power to adopt acts inaccordance with Article 290 of the Treaty on the Functioning of the European Union
should be delegated to the Commission to supplement this Regulation by establishingdetailed 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 theCommission carry out appropriate consultations during its preparatory work, including
at expert level, and that those consultations be conducted in accordance with theprinciples laid down in the Interinstitutional Agreement of 13 April 2016 on Better
Law-Making 34. In particular, to ensure equal participation in the preparation ofdelegated acts, the European Parliament and the Council receive all documents at thesame time as Member States' experts, and their experts systematically have access tomeetings of Commission expert groups dealing with the preparation of delegated acts.

(29)

The implementing powers conferred on the Commission should be exercised inaccordance with Regulation (EU) No 182/2011 of the European Parliament and of theCouncil 35. In order to exercise the implementing powers laid down in this Regulation,
the Commission should be assisted in its tasks under this Regulation by a

34

OJ L 123, 12.5.2016, p. 1
Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011
laying down the rules and general principles concerning mechanisms for control by Member States of
the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

35

EN

8

EN

Climate Change Committee established pursuant to Article 44(3) of Regulation (EU)2018/1999 of the European Parliament and of the Council 36.
(30)

The Commission should review the implementation of this Regulation 3 years
following the entry into force of this Regulation, and subsequently not later than six
months after the global stocktake agreed under Article 14 of the Paris Agreement..
Those reviews should take into account the relevant developments concerning theUnion legislation, technological and scientific progress, market developments in thefield of carbon removals and food security including food availability andaffordability, and should be informed by the results of the global stocktake of the Paris
Agreement.

(31)

The objectives of this Regulation, namely to promote the deployment of high quality
carbon removals while minimising the risk of greenwashing, cannot be sufficiently
achieved by the Member States alone, and by reason of the scale and effects of the
proposed action, those objectives can be better achieved at Union level. Therefore, theUnion 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 ofproportionality, as set out in that Article, this Regulation does not go beyond what isnecessary to achieve those objectives,

HAVE ADOPTED THIS REGULATION:

Chapter 1
GENERAL PROVISIONS
Article 1
Subject matter and scope
1.

EN

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:(a)quality criteria for carbon removal activities that take place in the Union;(b)rules for the verification and certification of carbon removals;(c)rules for the functioning and recognition by the Commission of certification
schemes.

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 thatare zero-rated in accordance with Annex IV thereto.

36

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, amending Regulations (EC) No 663/2009 and(EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC,
2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament andof the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No
525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1).

9EN

Article 2
Definitions
1.

For the purposes of this Regulation, the following definitions apply:(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 releasefrom a biogenic carbon pool to the atmosphere;(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 abiogenic carbon pool to the atmosphere, or storing atmospheric or biogenic
carbon in long-lasting products or materials;(c)‘biogenic carbon pool’ means above-ground biomass, below-ground biomass,
litter, dead wood and soil organic carbon as set out in points (a) to (e) of Part B
of Annex I to Regulation 2018/841;(d)‘operator’ means any legal or physical person who operates or controls acarbon removal activity, or to whom decisive economic power over thetechnical functioning of the activity has been delegated;(e)‘group of operators’ means a legal entity that represents more than one operator
and is responsible for ensuring that those operators comply with thisRegulation;(f)‘monitoring period’ means a period, the duration of which is determined inaccordance to the type of carbon removal activity, over which the storage ofcarbon is monitored by the operator;(g)‘permanent carbon storage’ means a carbon removal activity that, under normal
circumstances and using appropriate management practices, stores atmosphericor biogenic carbon for several centuries, including bioenergy with carbon
capture and storage and direct air carbon capture and storage;(h)‘carbon farming’ means a carbon removal activity related to land managementthat results in the increase of carbon storage in living biomass, dead organic
matter and soils by enhancing carbon capture and/or reducing the release ofcarbon to the atmosphere;(i)‘carbon storage in products’ means a carbon removal activity that stores
atmospheric and biogenic carbon in long-lasting products or materials;(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;(k)‘certification scheme’ means a scheme managed by a private or publicorganisation that oversees the certification of compliance of operators or groupof operators with this Regulation;(l)‘certification audit’ means an audit carried out by a certification body;(m) ‘re-certification audit’ means an audit carried out in the process of renewing acertificate issued by a certification body;

EN

10

EN

(n)

‘certificate’ means a conformity statement issued by the certification bodycertifying that the carbon removal activity complies with this Regulation;(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.
Article 3
Eligibility for certification

Carbon removals shall be eligible for certification under this Regulation where theymeet both of the following conditions:(a)they are generated from a carbon removal activity that complies with thequality criteria set out in Articles 4 to 7;(b)they are independently verified in accordance with Article 9.

Chapter 2
QUALITY CRITERIAArticle 4
Quantification
1.

A carbon removal activity shall provide a net carbon removal benefit, which shall bequantified using the following formula:
Net carbon removal benefit = CRbaseline – CRtotal – GHGincrease > 0
where:

EN(a)

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

CRtotal is the total carbon removals of the carbon removal 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 removal activity.

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.

3.

Quantities referred to in paragraph 1, points (a), (b) and (c), shall be designated witha 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 ofcarbon dioxide equivalent.

4.

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

5.

The baseline shall correspond to the standard carbon removal performance ofcomparable activities in similar social, economic, environmental and technologicalcircumstances and take into account the geographical context.

6.

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

11

EN

7.

The baseline shall be periodically updated.

8.

The quantification of the carbon removals shall account for uncertainties inaccordance with recognised statistical approaches.

9.

To support the quantification of carbon removals generated by carbon farming, theoperator or group of operators shall gather data on carbon removals and greenhousegas 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.
Article 5
Additionality

1.

A carbon removal activity shall be additional. To that end, the carbon removal
activity shall meet both of the following criteria:(a) it goes beyond Union and national statutory requirements;(b) it takes place due to the incentive effect of the certification.

2.

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

1.

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

2.

For the purposes of paragraph 1, an operator or group of operators shall comply withboth of the following criteria:(a) they shall monitor and mitigate any risk of release of the stored carbon occurring
during the monitoring period;(b) they shall be subject to appropriate liability mechanisms in order to address any
release of the stored carbon occurring during the monitoring period.

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 themonitoring period.
Article 7
Sustainability

1.

EN

A carbon removal activity shall have a neutral impact on or generate co-benefits for
all the following sustainability objectives:(a)climate change mitigation beyond the net carbon removal benefit referred to in
Article 4(1);(b)

climate change adaptation;(c)sustainable use and protection of water and marine resources;

12

EN

(d)

transition to a circular economy;(e)pollution prevention and control;(f)protection and restoration of biodiversity and ecosystems.

2.

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

3.

Where an operator or group of operators report co-benefits that contribute to thesustainability objectives referred to in paragraph 1 beyond the minimum
sustainability requirements referred to in paragraph 2, they shall comply with thecertification 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 forthe objective referred to in paragraph 1, point (f).

Article 8
Certification methodologies
1.

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

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 foractivities related to permanent carbon storage, carbon farming and carbon storage inproducts. Those certification methodologies shall include at least the elements set out
in Annex I.

3.

When preparing those delegated acts, the Commission shall take into account thefollowing elements:(a)the objectives of ensuring the robustness of carbon removals and recognising
the protection and restoration of ecosystems;(b)

the objective of minimising administrative burden for operators, particularly
for small-scale carbon farming operators;(c)relevant Union and national law;(d)relevant Union and international certification methodologies and standards.

Chapter 3
CERTIFICATION
Article 9
Certification of compliance1.

EN

To apply for a certification of compliance with this Regulation, an operator or agroup 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 acertification body a comprehensive description of the carbon removal activity,
including the certification methodology applied to assess compliance with Articles 4

13

ENto 7, the expected total carbon removals and net carbon removal benefit. Groups ofoperators shall also specify how advisory services on carbon removal activities areprovided, in particular to small-scale carbon farming operators.
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, thecertification 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, andmake the summary of the certification audit report and the certificate publicly
available in a registry referred to in Article 12.

3.

The certification body shall carry out periodic re-certification audits to reconfirm
compliance of the carbon removal activity with Articles 4 to 7 and verify thegenerated carbon benefit. As a result of that re-certification audit, the certificationbody shall issue a re-certification audit report, that includes a summary, and an
updated certificate. The certification scheme shall control the re-certification audit
report and the updated certificate, and make the summary of the re-certification audit
report, the updated certificate and the certified carbon removal units publicly
available in a registry referred to in Article 12.

4.

The operator or a group of operators shall support the certification body duringcertification and re-certification audits, notably by giving access to the activity
premises and providing relevant data and documentation.

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 inaccordance with the examination procedure referred to in Article 17.
Article 10
Certification bodies

EN

1.

Certification bodies appointed by certification schemes shall be accredited by anational accreditation authority pursuant to Regulation (EC) No 765/2008 of theEuropean Parliament and of the Council 37.

2.

Certification bodies shall be:(a)competent to carry out the certification and re-certification audits referred to in
Article 9;(b)

independent from the operators or from a group of operators, and carry out theactivities required under this Regulation in the public interest.

3.

For the purpose of paragraph 2, point (b), certification bodies or any part thereof
shall not: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 andrepealing Regulation (EEC) No 339/93 (OJ L 218, 13.8.2008, p. 30).

14

EN

4.

(a)

be an operator or a group of operators, the owner of an operator or of a groupof operators, or be owned by them;(b)have relations with operators or with a group of operators, that could affecttheir independence and impartiality.

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 locationof the audits referred to in Article 9. Where Member States find issues of nonconformity, they shall inform the certification body and the relevant certification
scheme thereof without delay.

Chapter 4
CERTIFICATION SCHEMES
Article 11
Operation of certification schemes
1.

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

2.

Certification schemes shall operate on the basis of reliable and transparent rules andprocedures, in particular with regard to internal management and monitoring,handling of complaints and appeals, stakeholder consultation, transparency andpublication of information, appointment and training of certification bodies,
addressing non-conformity issues, development and management of registries.

3.

Certification schemes shall verify if the information and data submitted by theoperator 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
was carried out in an accurate, reliable, and cost-effective manner.

4.

Certification schemes shall publish, at least annually, a list of the appointed
certification bodies, stating for each certification body by which entity or national
public authority it was recognised and which entity or national public authority ismonitoring it.

5.

The Commission shall adopt implementing acts setting out the structure, format,
technical details and process referred to in paragraphs 2, 3 and 4, which shall apply
to all certification schemes. Those implementing acts shall be adopted in accordancewith the examination procedure referred to in Article 17.
Article 12
Registries

1.

EN

A certification scheme shall establish and duly maintain a public registry to makepublicly accessible the information related to the certification process, including thecertificates 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.

15

EN

2.

The Commission may adopt implementing acts setting out the structure, format, andtechnical details of the public registries, and of the recording, holding or use ofcarbon 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.
Article 13
Recognition of certification schemes

1.

Only a certification scheme recognised by the Commission by means of a decision
may be used by operators or group of operators to demonstrate compliance with thisRegulation. Such decision shall be valid for a period of no more than 5 years.

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.

3.

The Commission may repeal a decision recognising a certification scheme pursuant
to paragraph 1 where the certification scheme fails to implement the standards andrules set out in the implementing acts referred to in Article 11(5). Where a Member
State raises concerns that a certification scheme does not operate in accordance withthe 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 shallinvestigate the matter and take appropriate action, including repealing the relevant
decision.

4.

The Commission may adopt implementing acts setting out the structure, format, andtechnical details of the notification and recognition processes referred to inparagraphs 1 and 2. Those implementing acts shall be adopted in accordance with theexamination procedure referred to in Article 17.
Article 14
Reporting requirements

EN

1.

Each certification scheme recognised by the Commission shall submit to theCommission 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 tosubmit a report shall apply only to certification schemes that have operated for atleast 12 months.

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.

3.

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

16

EN

Chapter 5
FINAL PROVISIONS
Article 15
Amendment to Annex II
The Commission is empowered to adopt delegated acts in accordance with Article 16 toamend Annex II in order to adapt the list of minimum information included in the certificatesreferred to in Article 9.
Article 16
Exercise of delegation
1.

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

2.

The power to adopt delegated acts referred to in Articles 8 and 15 shall be conferredon the Commission for an indeterminate period of time from [PO: please insert thedate = the date of entry into force of this Regulation].

3.

The delegation of power referred to in Articles 8 and 15 may be revoked at any timeby 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 theEuropean Union or at a later date specified therein. It shall not affect the validity ofany delegated acts already in force.

4.

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

5.

Delegated acts adopted pursuant to Articles 8 and 15 shall enter into force only if noobjection 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 andto the Council or if, before the expiry of that period, the European Parliament and theCouncil 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 theCouncil.
Article 17
Committee procedure

1.

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

2.

Where reference is made to this Article, Article 5 of Regulation (EU) No
182/2011 shall apply.
Article 18
Review

EN

17

EN

1.

This Regulation shall be kept under review in all aspects, taking into account therelevant developments concerning Union legislation, United Nations Framework
Convention on Climate Change and the Paris Agreement, technological and scientificprogress, market developments in the field of carbon removals, and Union foodsecurity.

2.

Three years after the entry into force of this Regulation and not later than by the endof 2028, and subsequently within six months after the outcome of each global
stocktake agreed under Article 14 of the Paris Agreement, the Commission shallreport to the European Parliament and to the Council on the implementation of thisRegulation.
Article 19
Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in
the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,

For the European Parliament
The President
[...]

EN

For the Council
The President
[...]

18

EN

LEGISLATIVE FINANCIAL STATEMENT

Contents

EN

1.

FRAMEWORK OF THE PROPOSAL/INITIATIVE ............................................... 21

1.1.

Title of the proposal/initiative .................................................................................... 21

1.2.

Policy area(s) concerned ............................................................................................ 21

1.3.

The proposal/initiative relates to: ............................................................................... 21

1.4.

Objective(s) ................................................................................................................ 21

1.4.1.

General objective(s) ................................................................................................... 21

1.4.2.

Specific objective(s) ................................................................................................... 21

1.4.3.

Expected result(s) and impact .................................................................................... 22

1.4.4.

Indicators of performance .......................................................................................... 22

1.5.

Grounds for the proposal/initiative ............................................................................ 22

1.5.1.

Requirement(s) to be met in the short or long term including a detailed timeline forroll-out of the implementation of the initiative .......................................................... 22

1.5.2.

Added value of Union involvement (it may result from different factors, e.g.
coordination gains, legal certainty, greater effectiveness or complementarities). For
the purposes of this point 'added value of Union involvement' is the value resulting
from Union intervention which is additional to the value that would have beenotherwise created by Member States alone. ............................................................... 23

1.5.3.

Lessons learned from similar experiences in the past ................................................ 23

1.5.4.

Compatibility with the Multiannual Financial Framework and possible synergies
with other appropriate instruments............................................................................. 24

1.5.5.

Assessment of the different available financing options, including scope forredeployment .............................................................................................................. 25

1.6.

Duration and financial impact of the proposal/initiative............................................ 25

1.7.

Management mode(s) planned ................................................................................... 25

2.

MANAGEMENT MEASURES ................................................................................ 27

2.1.

Monitoring and reporting rules .................................................................................. 27

2.2.

Management and control system(s) ........................................................................... 27

2.2.1.

Justification of the management mode(s), the funding implementation mechanism(s),the payment modalities and the control strategy proposed ........................................ 27

2.2.2.

Information concerning the risks identified and the internal control system(s) set up
to mitigate them.......................................................................................................... 27

2.2.3.

Estimation and justification of the cost-effectiveness of the controls (ratio of "control
costs ÷ value of the related funds managed"), and assessment of the expected levelsof risk of error (at payment & at closure) .................................................................. 27

2.3.

Measures to prevent fraud and irregularities.............................................................. 27
19

EN

EN

3.

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE............ 28

3.1.

Heading(s) of the multiannual financial framework and expenditure budget line(s)affected ....................................................................................................................... 28

3.2.

Estimated financial impact of the proposal on appropriations ................................... 29

3.2.1.

Summary of estimated impact on operational appropriations.................................... 29

3.2.2.

Estimated output funded with operational appropriations ......................................... 31

3.2.3.

Summary of estimated impact on administrative appropriations ............................... 33

3.2.4.

Compatibility with the current multiannual financial framework.............................. 35

3.2.5.

Third-party contributions ........................................................................................... 35

3.3.

Estimated impact on revenue ..................................................................................... 36

20

ENLEGISLATIVE FINANCIAL STATEMENT
1.

FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.

Title of the proposal/initiative
Proposal for a Regulation of the European Parliament and of the Council establishingan European framework for carbon removal certification

1.2.

Policy area(s) concerned
Climate Action
Heading 3 Natural resources and Environment Title 9 – Environment and Climate
Action (MFF 2021/27)

1.3.

The proposal/initiative relates to:
X a new action
 a new action following a pilot project/preparatory action 38
 the extension of an existing action
 a merger or redirection of one or more actions towards another/a new action

1.4.

Objective(s)1.4.1.

General objective(s)The general objective of the proposed Regulation on carbon removal certification is: topromote the generation of high quality carbon removals with the view to support theachievement of the 2050 climate neutrality objective set in the European Climate
Law and the other environmental objectives of the European Green Deal.

1.4.2.

Specific objective(s)The specific objectives of the proposed Regulation on carbon removal certification
include:1. Set out four quality criteria (under the acronym QU.A.L.ITY): QUantification,
Additionality and baselines, Long-term storage, and sustainabilITY in order to
identify and certify high quality carbon removals generated in the EU.
2. Develop certification methodologies that are tailored to each type of carbon
removal activity, in order to promote an harmonised and correct implementation of
the QU.A.L.ITY criteria.
3. Increase the public trust in carbon removals by ensuring the transparency androbustness of the certification process, including the certification schemes recognisedby the Commission and the public registries of carbon removals.

38

EN

As referred to in Article 58(2)(a) or (b) of the Financial Regulation.

21

EN1.4.3.

Expected result(s) and impact
Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.

The most important impact of the adoption of the proposed Regulation will be anincrease in the deployment of carbon removal activities generating high quality
carbon removals, thus contributing towards the Union objective of climate neutrality
by 2050. The proposed Regulation affects economic operators such as farmers,
foresters but also industrial companies that will develop carbon removal activities on
the ground; private organisations and Member States authorities, who may develop
private or public certification schemes to implement and control the certification
process. More in general, the proposed Regulation affects all European and world
citizens, as climate action is a public good that is cross-border in nature.
1.4.4.

Indicators of performance
Specify the indicators for monitoring progress and achievements.

Indicator #1: number of carbon removal activities generating high quality carbon
removals certified under the EU certification framework, thus contributing to the2050 climate neutrality goal.
Indicator #2: number of detailed certification methodologies for carbon removal
activities, particularly for carbon farming, developed by the Commission.
Indicator #3: amount of certification schemes, recognised by the Commission, that
operator shall use to demonstrate compliance with the EU quality criteria for carbon
removals.
1.5.

Grounds for the proposal/initiative

1.5.1.

Requirement(s) to be met in the short or long term including a detailed timeline forroll-out of the implementation of the initiative
In 2021, the EU increased its climate ambition through Regulation (EU) 2021/1119(the European Climate Law). This law establishes a binding overall net greenhousegas (GHG) reduction target of at least 55% by 2030 compared to 1990 and climate
neutrality by 2050. The March 2020 Circular Economy Action Plan has announced
that the Commission will develop an effective regulatory framework for thecertification of carbon removals to incentivise the uptake of carbon removal and toincrease circularity of carbon, in full respect of the biodiversity objectives. This
proposal delivers on the above-mentioned policy commitment.
During the start-up phase (2024-2025): after the entering into force of the Regulation(assumed in 2024), in close consultation with the relevant expert group, theCommission will prepare at least three delegated acts setting out the certification
methodologies for carbon removal activities in the area of permanent storage, carbon
storage products, and carbon farming. These methodologies will need to be updated
on a regular basis. In addition, for the relevant Committee approval, the Commission
will need to prepare two implementing acts setting out the rules for the operation ofcertification schemes and their assessment and recognition by the Commission, andfor the set up and operation of public registries of carbon removals.

EN

22

EN

During the full-scale operational phase (2025-and later): in close consultation withstakeholders and the relevant regulatory Committee, the Commission will carry out
the assessment of a number of certification schemes and recognise those compliant
with the EU regulatory framework through specific Commission decisions. In
addition, the Commission will need to develop a policy on carbon removals forperiod after 2030.
1.5.2.

Added value of Union involvement (it may result from different factors, e.g.
coordination gains, legal certainty, greater effectiveness or complementarities). For
the purposes of this point 'added value of Union involvement' is the value resulting
from Union intervention which is additional to the value that would have beenotherwise created by Member States alone.
Climate change is a trans-boundary problem. Its effects are global, irrespective of thelocation of e.g. sources of greenhouse gas emissions. Therefore, these challenges
cannot be solved by national or local action alone, since individual action is unlikely
to lead to optimal outcomes. Coordination at the European level enhances climate
action and can supplement and reinforce national and local action effectively; EU
action is justified on grounds of subsidiarity, in line with Article 191 of the Treaty on
the Functioning of the European Union.
A European framework would be more appropriate than national initiatives inaddressing the difficulty to assess the quality of carbon removals. Such framework
would create a level-playing field and a fair internal market for the certification ofcarbon removals, enhancing comparability and trust. A patchwork of national
initiatives in this area would only exacerbate the problem rather than solving it.
The proposed Regulation will need to be supported by robust and transparent
certification methodologies. With regard to carbon farming, they will need to buildand further develop the approach followed in the existing LULUCF regulation. They
should also need to be able to make the link between land management choices madein the agriculture and LULUCF sector and the impact on carbon sequestration andbiodiversity protection.
At present, limited EEA resources are available for supporting the MRV of LULUCF
emission inventory, according to requirement set in Regulations EU 2018/841(LULUCF Regulation) and EU 2018/1999 (Governance Regulation).

1.5.3.

Lessons learned from similar experiences in the past
While the proposed Regulation establishes a new EU-wide certification framework forhigh quality carbon removals, it builds on the following existing experience at EU
level:- Under the Innovation Fund 39, the Commission 40 has developed detailed a number ofEU methodologies for the quantification of GHG emission avoidance of industrial
activities, including carbon removal activities such as bioenergy-based CCS (BECCS)
and Direct Air Carbon Capture and Storage (DACCS) projects. Furthermore, the

39
40

EN

Innovation Fund, https://climate.ec.europa.eu/eu-action/funding-climate-action/innovation-fund_en
Call for proposals Annex C: Methodology for calculation of GHG emission avoidance
https://ec.europa.eu/info/funding-tenders/opportunities/docs/2021-2027/innovfund/wp-call/callannex_c_innovfund-lsc-2020-two-stage_en.pdf

23ENImplementing Regulation (EU) 2018/2066 41 sets out detailed rules on monitoring andreporting of GHG emissions under the ETS.
- Under the EU Renewable Energy Directive (RED), the Commission has gained
nearly 15 years of experience in the certification of sustainability criteria forbioenergy. These EU criteria are implemented by around 15 public or private
certification schemes (called voluntary schemes) that have been recognised by theCommission. Under RED, the Commission has recently adopted an implementing act
setting detailed rules for the certification process carried out by certification bodies
and controlled by certification schemes.
1.5.4.

Compatibility with the Multiannual Financial Framework and possible synergies
with other appropriate instruments
This proposal is part of the European Green Deal. The March 2020 Circular
Economy Action Plan has announced that the Commission will develop an effective
regulatory framework for the certification of carbon removals to incentivise theuptake of carbon removal and to increase circularity of carbon, in full respect of thebiodiversity objectives. In addition, the overall objective of the Green Deal is to alignUnion legislation with the EU’s increased climate and biodiversity ambition. Thislegislative proposal is complementary to the climate and energy proposals made in
the Fit-for-55 legislative package, particularly the LULUCF regulation and therevised Renewable Energy Directive.
There are equally strong interlinkages with other Commission initiatives on
improving the resilience of the EU’s forests to climate change, restoring degraded
land and ecosystems, rewetting peatlands and promoting the bio-economy, including
the use of durable harvested wood products, in full respect of ecological principles
fostering biodiversity:a) Common Agriculture Policy;b) EU Biodiversity Strategy for 2030;c) Farm to Fork Strategy for a fair, healthy and environmentally-friendly foodsystem;d) EU Forest Strategy;e) EU Nature Restoration Plan;f) EU Strategy on Adaptation to Climate Change;g) A sustainable Bioeconomy for Europe;h) Circular Economy Action Plan for a cleaner and more competitive Europe;i) Zero Pollution Action Plan;j) A long-term Vision for the EU’s Rural Areas;

41

EN

Commission Implementing Regulation (EU) 2018/2066,
https://eur-lex.europa.eu/eli/reg_impl/2018/2066/oj

24

EN1.5.5.

Assessment of the different available financing options, including scope forredeployment
Considering the current staff and financial constraints put on the Commission, DG
CLIMA has exhausted its internal redeployment possibilities and optimised its
resources as much as it could, hiring contractual agents and intramuros to fill in thelack in staff. Nevertheless, even with many of the (more technical, scientific) tasks
outplaced to external contractors, adequate staffing is crucial to keep our ability tomeet our obligations and implement the additional tasks put in this legislative
proposal for a Regulation on carbon removal certification.

1.6.

Duration and financial impact of the proposal/initiative
 limited duration

in effect from [DD/MM]YYYY to [DD/MM]YYYYFinancial impact from YYYY to YYYY for commitment appropriations and fromYYYY to YYYY for payment appropriations.
X unlimited duration
Implementation with a start-up period from mid-2024 to end of 2025,
followed by full-scale operation.
1.7.

Management mode(s) planned42

 Direct management by the Commission
 by its departments, including by its staff in the Union delegations; by the executive agencies
 Shared management with the Member States Indirect management by entrusting budget implementation tasks to: third countries or the bodies they have designated; international organisations and their agencies (to be specified); the EIB and the European Investment Fund; bodies referred to in Articles 70 and 71 of the Financial Regulation; public law bodies; bodies governed by private law with a public service mission to the extent that they
provide adequate financial guarantees; bodies governed by the private law of a Member State that are entrusted with theimplementation of a public-private partnership and that provide adequate financial guarantees; persons entrusted with the implementation of specific actions in the CFSP pursuant to Title
V of the TEU, and identified in the relevant basic act.
If more than one management mode is indicated, please provide details in the ‘Comments’ section.
42

EN

Details of management modes and references to the Financial Regulation may be found on the
BudgWeb site:
https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx

25

ENComments
As included in Article 8 of the proposed Regulation, the Commission will develop a numberof certification methodologies tailored to the main types of carbon removal activities, with theview to ensure a correct, harmonised and cost-effective implementation of the EU quality
criteria for carbon removals.

EN

26

EN

2.

MANAGEMENT MEASURES

2.1.

Monitoring and reporting rules
Specify frequency and conditions.

As set out in the proposed Regulation, the carbon removal claims made by operators
will need to be regularly monitored, reported and independently verified bycertification bodies. All these reports will be publically available on the registries ofcertification schemes and will provide a significant amount of information on theimpacts of the proposed Regulation. Furthermore, the data on carbon removal
quantification, monitoring and reporting, verification (MRV) gathered by the EEA
will be a key source for information for the Commission to evaluate progress in theimplementation of the proposed Regulation. In addition, the Commission will
monitor the deployment of certified carbon removal activities through the annual
reports of the certification schemes recognized by the Commission. Finally, theCommission regularly carries out studies on various pertinent aspects of EU climate
policy.
2.2.

Management and control system(s)2.2.1.

Justification of the management mode(s), the funding implementation mechanism(s),the payment modalities and the control strategy proposed
Not applicable - The proposal is not implementing a financial programme but
designing a long-term policy. Management mode, funding implementation
mechanisms, payment modalities and control strategy in relation to error rates are notapplicable. The implementation of this proposal will require the redeployment of
human resources within the Commission for both the start-up and the full-scale
operational phases. Appropriate procedures are in place.

2.2.2.

Information concerning the risks identified and the internal control system(s) set up
to mitigate themThis proposal does not bring about new significant controls/risks that would not becovered be an existing internal control framework. No specific measures beyond theapplication of the Financial Regulation have been envisaged.

2.2.3.

Estimation and justification of the cost-effectiveness of the controls (ratio of "control
costs ÷ value of the related funds managed"), and assessment of the expected levelsof risk of error (at payment & at closure)

2.3.

Measures to prevent fraud and irregularities
Specify existing or envisaged prevention and protection measures, e.g. from the AntiFraud Strategy.
DG CLIMA’s fraud prevention and detection strategy will apply.

EN

27

EN

3.

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1.

Heading(s) of the multiannual financial framework and expenditure budgetline(s) affected• Existing budget lines
In order of multiannual financial framework headings and budget lines.
Type ofexpenditure

Budget line
Heading ofmultiannual
financial
framework

NumberDiff./Nondiff. 43

Contribution
from
EFTA
countries
44

fromcandidatecountries 45

from third
countries

within themeaning of
Article 21(2)(b) of
the Financial
Regulation

3

09 02 03

Diff

YES

NO

NO

NO

3

09 10 02

Diff

YES

YES

YES

NO

7

20 01 02 01

Non-diff.

NO

NO

NO

NO

7

20 02 06 01

Non-diff.

NO

NO

NO

NO

7

20 02 06 02

Non-diff.

NO

NO

NO

NO

7

20 02 06 03

Non-diff.

NO

NO

NO

NO

• New budget lines requested
NA

43
44
45

EN

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.
EFTA: European Free Trade Association.
Candidate countries and, where applicable, potential candidates from the Western Balkans.

28

EN

3.2.

Estimated financial impact of the proposal on appropriations

3.2.1.

Summary of estimated impact on operational appropriations



The proposal/initiative does not require the use of operational appropriations
 The proposal/initiative requires the use of operational appropriations, as explained below:
EUR million (to three decimal places)

Heading of multiannual financial
framework

3

DG: CLIMA

Natural Resources and Environment

Year
2024

Year
2025

Year
2026

3.000
1.000

2.000
2.000

2.000

3.000

2.000

1.000

2.000

Year
2027

TOTAL

 Operational appropriations
09 02 03

Commitments(1a)Payments

(2a)

-

5.000
5.000

Appropriations of an administrative nature financed from theenvelope of specific programmes 46
XXX

(3)

TOTAL appropriations
for DG CLIMA

46

EN

Commitments
Payments=1a+1b+3=2a+2b
+3

5.000
2.000

-

5.000

Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research.

29

EN TOTAL operational appropriations

Commitments

(4)

3.000

2.000

Payments

(5)

1.000

2.000

 TOTAL appropriations of an administrative naturefinanced from the envelope for specific programmes

TOTAL appropriations
under HEADING 3 of the multiannual
financial framework

5.000
2.000

-

5.000

(6)

Commitments

=4+ 6

3.000

2.000

Payments

=5+ 6

1.000

2.000

5.000
2.000

-

5.000

If more than one operational heading is affected by the proposal / initiative, repeat the section above:
TOTAL appropriations
under HEADINGS 1 to 6of the multiannual financial framework(Reference amount)EN

Commitments=4+ 6

Payments

=5+ 6

30

EN

Heading of multiannual financial
framework

7‘Administrative expenditure’

This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative
Financial Statement (Annex V to the internal rules), which is uploaded to DECIDE for interservice consultation purposes.
EUR million (to three decimal places)
Year
2024

Year
2025

Year
2026

Year
2027

 Human resources

0.785

1.099

1.099

1.099

4.082

 Other administrative expenditure

0.070

0.070

0.070

0.070

0.280

0.855

1.169

1.169

1.169

4.362

0.855

1.169

1.169

1.169

4.362

TOTAL

DG: CLIMATOTAL DG CLIMATOTAL appropriations
under HEADING 7of the multiannual financial framework

Appropriations(Total commitments =Total payments)

EUR million (to three decimal places)

TOTAL appropriations
under HEADINGS 1 to 7of the multiannual financial framework

3.2.2.

Year
2024

Year
2025

Year
2026

Year
2027

Commitments

3.855

3.169

1.169

1.169

9.362

Payments

1.855

3.169

3.169

1.169

9.362

TOTAL

Estimated output funded with operational appropriations
Commitment appropriations in EUR million (to three decimal places)

EN

31

EN

Year
N

Indicate
objectives andoutputs

Year
N+2

Year
N+3

Enter as many years as necessary to show theduration of the impact (see point 1.6)

TOTAL

Cost

Cost

Cost

No

Cost

No

Cost

No

Cost

No

Avera
ge
cost

No

Type 47No

OUTPUTS

No



Year
N+1

Cost

Total
No

Total
cost

SPECIFIC OBJECTIVE No 1 48…
- Output- Output- Output
Subtotal for specific objective No 1
SPECIFIC OBJECTIVE No 2 ...
- Output
Subtotal for specific objective No 2
TOTALS

47
48

EN

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.).
As described in point 1.4.2. ‘Specific objective(s)…’32

EN

3.2.3.

Summary of estimated impact on administrative appropriations


The proposal/initiative does not require the use of appropriations of an administrative
nature The proposal/initiative requires the use of appropriations of an administrative nature,
as explained below:
EUR million (to three decimal places)
2024

2025

2026

2027

TOTAL

HEADING 7of the multiannual
financial framework
Human resources

0.785

1.099

1.099

1.099

4.082

Other administrative
expenditure

0.070

0.070

0.070

0.070

0.280

Subtotal HEADING 7of the multiannual
financial framework

0.855

1.169

1.169

1.169

4.362

0.855

1.169

1.169

1.169

4.362

Outside HEADING 7 49of the multiannual
financial framework

Human resources
Other expenditureof an administrative
natureSubtotaloutside HEADING 7of the multiannual
financial framework

TOTAL

The appropriations required for human resources and other expenditure of an administrative nature will be met byappropriations from the DG that are already assigned to management of the action and/or have been redeployed within theDG, together if necessary with any additional allocation which may be granted to the managing DG under the annual
allocation procedure and in the light of budgetary constraints.

49

EN

Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes
and/or actions (former ‘BA’ lines), indirect research, direct research.

33

EN

Estimated requirements of human resources

The proposal/initiative does not require the use of human resources.

 The proposal/initiative requires the use of human resources, as explained below:
Estimate to be expressed in full time equivalent units
2024

2025

2026

2027

5

7

7

7

5

7

7

7

 Establishment plan posts (officials and temporary staff)
20 01 02 01 (Headquarters and Commission’s Representation
Offices)
20 01 02 03 (Delegations)
01 01 01 01 (Indirect research)
01 01 01 11 (Direct research)
Other budget lines (specify)
 External staff (in Full Time Equivalent unit: FTE) 50
20 02 01 (AC, END, INT from the ‘global envelope’)
20 02 03 (AC, AL, END, INT and JPD in the delegations)
XX 01 xx yy zz 51- at Headquarters- in Delegations

01 01 01 02 (AC, END, INT - Indirect research)
01 01 01 12 (AC, END, INT - Direct research)
Other budget lines (specify)
TOTAL

XX is the policy area or budget title concerned.
The human resources required will be met by staff from the DG who are already assigned to management of theaction and/or have been redeployed within the DG, together if necessary with any additional allocation which
may be granted to the managing DG under the annual allocation procedure and in the light of budgetary
constraints.

Description of tasks to be carried out:
Officials and temporary staff

The AST post will support the management the relevant Expert Group and theRegulatory Committee.
The AD posts will:- Prepare a number of delegated act setting out detailed certification methodologies fordemonstrating compliance with the EU quality criteria for carbon removals.
- Prepare a number of implementing acts to set out rules for the certification of carbon
removal activities, for the governance of certification schemes and for the set up andmanagement of public registries of carbon removals.
- Carry out assessment of certification schemes applying for Commission recognitionand prepare the releated Commission Decisions.
- Prepare policy proposals in the areas of carbon removals for the period after 2030.

External staff

50
51

EN

AC= Contract Staff; AL = Local Staff; END= Seconded National Expert; INT = agency staff;
JPD= Junior Professionals in Delegations.
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines).

34

EN

3.2.4.

Compatibility with the current multiannual financial framework
The proposal/initiative: can be fully financed through redeployment within the relevant heading of theMultiannual Financial Framework (MFF).
That the expenditure will be incurrected within the LIFE enveloperequires use of the unallocated margin under the relevant heading of the MFF and/or
use of the special instruments as defined in the MFF Regulation.
requires a revision of the MFF.

3.2.5.

Third-party contributions
The proposal/initiative:

 does not provide for co-financing by third parties

provides for the co-financing by third parties estimated below:
Appropriations in EUR million (to three decimal places)
Year
N 52

Year
N+1

Year
N+2

Year
N+3

Enter as many years as necessary
to show the duration of the
impact (see point 1.6)

Total

Specify the co-financing
body
TOTAL appropriations
co-financed

52

EN

Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the
expected first year of implementation (for instance: 2021). The same for the following years.

35

EN

3.3.

Estimated impact on revenue

 The proposal/initiative has no financial impact on revenue.
The proposal/initiative has the following financial impact:–

 on own resources– on other revenue–

please indicate, if the revenue is assigned to expenditure lines 
EUR million (to three decimal places)

Budget revenue line:

Appropriations
available forthe current
financial year

Impact of the proposal/initiative 53
Year
N

Year
N+1

Year
N+2

Year
N+3

Enter as many years as necessary to show
the duration of the impact (see point 1.6)

Article ………….

For assigned revenue, specify the budget expenditure line(s) affected.

Other remarks (e.g. method/formula used for calculating the impact on revenue or any otherinformation).

53

EN

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net
amounts, i.e. gross amounts after deduction of 20 % for collection costs.

36

ENEUROPEAN
COMMISSION

Brussels, 30.11.2022
COM(2022) 672 final
ANNEX 1ANNEX
to theProposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE
COUNCIL
establishing a Union certification framework for carbon removals{SEC(2022) 423 final} - {SWD(2022) 377 final} - {SWD(2022) 378 final}

EN

EN

ANNEX I
Elements of the certification methodologies referred to in Article 8
When adopting delegated acts pursuant to Article 8, the certification methodologies
shall include at least the following elements:

EN

(a)

description of the carbon removal activity covered, including its
monitoring period;(b)rules for identifying all carbon removal sinks and GHG emission sourcesreferred to in Article 4(1);(c)

rules for calculating the carbon removals under the baseline referred to in
Article 4(1), point (a);(d)

rules for calculating the total carbon removals referred to in Article 4(1),point (b);(e)

rules for calculating the increase in direct and indirect greenhouse gas
emissions referred to in Article 4(1), point (c);(f)

rules to address uncertainties in the quantification of carbon removals
referred to in Article 4(8);(g)

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

(h)

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

rules on appropriate liability mechanisms referred to in Article 6(2), point
(b);

(j)

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

(k)

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

1

EN

EUROPEAN
COMMISSION

Brussels, 30.11.2022
COM(2022) 672 final
ANNEX 2

ANNEX
to theProposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE
COUNCIL
establishing a Union certification framework for carbon removals{SEC(2022) 423 final} - {SWD(2022) 377 final} - {SWD(2022) 378 final}

EN

EN

ANNEX II
Minimum information included in the certificate referred to in Article 9
The certificate shall include the following minimum information:(a)name and type of the carbon removal activity, including the name andcontact details of the operator or group of operators;(b)the location of the carbon removal activity, including geographically
explicit location of the activity boundaries, respecting 1:5000 mapping
scale requirements for the Member State;(c)start date and end date of the carbon removal activity;(d)name of the certification scheme;(e)name and address of the certification body and logo;(f)(unique) certificate number or code;(g)place and date of issuance of the certificate;(h)reference to the applicable certification methodology referred to in
Article 8;(i)

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

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

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

increase in direct and indirect greenhouse gas emissions referred to in
Article 4(1), point (c);(m) breakdown by gases, sources, carbon sinks and stocks with regard to theinformation referred to in points (j), (k) and (l) of this Annex;

EN

(n)

duration of the monitoring period of the carbon removal activity;(o)any sustainability co-benefits referred to in Article 7(3);(p)

reference to any other carbon removal certification.

1

EN