In a significant step towards environmental sustainability, European Union legislators have agreed to establish the world’s first EU carbon removal registry. This registry aims to certify carbon dioxide removals achieved through eco-farming practices and industrial processes, marking a pivotal moment in the fight against climate change. The agreement, reached in the early hours of February 20, focuses on scaling up high-quality carbon removal within the EU to meet the ambitious goal of net-zero emissions by 2050.
The most common method of carbon removal currently is planting trees, which naturally absorb CO2 from the atmosphere. However, the EU is also looking towards advanced industrial technologies like Direct Air Capture (DAC). DAC involves using large fans to extract CO2 from the atmosphere for permanent storage. The EU carbon removal registry is designed to facilitate the trading of carbon removal units, each representing the removal of one tonne of CO2 from the atmosphere. This system was proposed by the European Commission in November 2022 and is seen as a critical first step in developing a cohesive EU-wide approach to carbon removal.
MEP Lídia Pereira, the Parliament’s speaker on the proposal, highlighted that the new certification scheme is set to prevent greenwashing and encourage private investment in carbon removals. This move is also expected to bolster the development of the voluntary carbon market. The framework laid out by the EU carbon removal registry categorizes carbon removals into four types: permanent carbon removals (like DAC and Bioenergy with Carbon Capture and Storage), temporary storage in long-lasting products (such as wood-based construction for at least 35 years), temporary storage from carbon farming (including forest and soil restoration, wetland management, and seagrass meadows for a minimum of five years), and soil emission reduction from carbon farming practices (also lasting at least five years).
The registry emphasizes that the last two activities must not lead to speculative land acquisition adversely affecting rural communities. It also expands the scope of eligible carbon removals to include those from marine environments, creating new business opportunities for farmers and foresters. However, projects aimed at avoiding deforestation are not eligible for certification under this framework.
The certification process is voluntary for now, but only certified units will count towards meeting the EU’s climate goals and commitments under the Paris Agreement. This approach is designed to encourage governments to take action. The next steps involve the European Commission developing specific certification methodologies based on quantification, additionality, long-term storage, and sustainability, including clear liability mechanisms. An electronic EU carbon removal registry for certification units is expected to be operational within four years of the regulation coming into force.