EU Creates Carbon Removal Framework

The European Council and Parliament have approved a voluntary framework intended to increase the deployment of high-quality carbon removal and soil emission reduction activities. Once in force, the finalised regulation will be the first step towards a comprehensive carbon removal and soil emission reduction framework in EU legislation, contributing to the 2050 climate neutrality goals set out in European law. The agreement extends the scope of the regulation to soil emission reductions and maintains an open definition of carbon removals, in line with that used by the UN Intergovernmental Panel on Climate Change (IPCC). It also differentiates between various carbon removal and emission reduction activities, setting out four different types of units: permanent carbon removal; temporary carbon storage in long-lasting products; temporary carbon storage from carbon farming; and soil emission reduction. By 2026, the EU Commission is due to produce a report on the feasibility of certifying activities that result in emissions reduction (other than those related to soils), based on a pilot certification methodology. In addition, the agreed text calls on the Commission to establish a common and transparent electronic EU-wide registry four years after the entry into force of the regulation, to make information on the certification and units publicly available and accessible.

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top