Vulcan Insight | European Commission presents a carbon removal certification scheme  

This week, the European Commission adopted a proposal for the first EU-wide carbon removal certification scheme. With this proposal, the Commission hopes to “boost innovative carbon removal technologies and sustainable carbon farming solutions, and contribute to the EU’s climate, environmental and zero pollution goals”.

As already acknowledged by the Commission and as we all know, reaching climate neutrality by mid-century will require us to use both natural ecosystems and industrial methods. Natural carbon removal takes place constantly all around us. Natural processes, mainly through forests, soils and oceans, involve the absorption of CO2 as part of the natural carbon cycle. Such processes can be encouraged through various means including reforestation and so-called carbon farming methods. In more recent years, extensive research and tests are being carried out to find technical solutions to find more carbon capture methods that will help strengthen the global fight against climate change. Direct air capture systems, which involve giant fans that suck CO2 from the air and then store it in either solid or liquid form, are one such example.

With this proposal, the Commission is now seeking to expand sustainable carbon removals and encourage the use of innovative solutions to capture, recycle and store CO2 by industry, farmers and foresters. Announcing the Commission’s proposal this week, Commissioner Timmermans, who leads the Commission’s climate change policy, described the proposal as “a historic step in our fight against the climate crisis” and that in order to reach climate neutrality the EU must “sharply reduce greenhouse gas emissions” and “remove carbon from the atmosphere”.

The Commission’s proposed certification regulation, which is voluntary, will improve the EU’s ability to quantify, monitor and verify carbon removals. To ensure the transparency and credibility of the certification process, this proposal outlines rules for the independent verification of carbon removals and rules to recognise certification schemes that can be used to prove compliance with the EU framework. The proposal sets out the following four QU.A.L.ITY criteria

1. Quantification: All carbon removal activities must be measured accurately and provide benefits to the climate.
2. Additionality: Removal activities need to go beyond existing practices and what is required by law.
3. Long-term storage: In order to ensure permanent storage, certificates will be linked to the duration of carbon storage.
4. Sustainability: Carbon removal activities must contribute to overarching sustainability objectives.

In line with the ordinary legislative procedure, the proposal will now be discussed in the European Parliament and Council. Based on the QU.A.L.ITY criteria outlined above, the Commission, supported by the expert group, will develop tailored certification methodologies for the various types of carbon removal activities. The first meeting of the expert group is expected to take place in Q1 of 2023.

Compliments of Vulcan Consulting – a member of the EACCNY.