Changes from report parliamentary committee draft to plenary report

AddedArticle 2 – paragraph 1 – point h a (new): (ha) ‘carbon farming sequestration ’ means an activity related to land management in the subcategories of the land use, land use change and forestry sector covered by Article 2(1) of Regulation (EU) 2018/841, as amended by Regulation (EU) 2023/839, or related to coastal management, consisting of one or more carbon farming practices or processes carried out by an operator that results in the increase of atmospheric or biogenic carbon stored in biogenic carbon pools by enhancing carbon capture, as defined per activity in the certification methodology;

RemovedAny uncertainties in carbon removals should be determined in a conservative manner proportionate to the uncertainties, in order to limit the risk of overestimating the quantity of carbon dioxide removed from the atmosphere. All major carbon crediting programmes apply these principles.

AddedArticle 2 – paragraph 1 – point i: (i) ‘carbon storage in products’ means an activity consisting of one or more practices or processes carried out by an operator which ensures long-term storage of atmospheric and biogenic carbon in long-lasting harvested wood products or materials for construction for at least five decades in a manner consistent with other Union environmental objectives, as well as Regulation (EU) 2018/841 and IPCC Guidelines as adopted by the Conference of the Parties to the UNFCCC or the Conference of the Parties serving as the Meeting of the Parties to the Paris Agreement;

RemovedArticle 4 – paragraph 5: 5. The baseline shall correspond to the highly representative standard carbon removal performance of comparable activities in similar social, economic, environmental and technological circumstances and take into account the geographical context.

AddedArticle 2 – paragraph 1 – point i a (new): (ia) ‘geological storage of CO2’ means geological storage of CO2 as defined in Article 3(1) of Directive 2009/31/EC;

RemovedThe EU baselines set out in the certification methodologies should be much more precise and representative of regional and local conditions compared to the usual national standardised baselines.

AddedArticle 2 – paragraph 1 – point n: (n) ‘certificate’ means a conformity statement issued by the certification body certifying that the activity complies with this Regulation;

RemovedArticle 4 – paragraph 6: 6. By way of derogation from paragraph 5, where duly justified in the applicable certification methodology, the baseline may be based on the individual carbon removal performance of that activity.

AddedArticle 2 – paragraph 1 – point o: (o) ‘carbon removal unit’ means one tonne of certified net carbon removal benefit generated by carbon removals and registered by a certification scheme.

RemovedWhen a standardised baseline has not been set up in the certification methodology (e.g. due to the lack of data), that same methodology should define the rules for setting up activity/project specific baselines.

AddedArticle 2 – paragraph 1 – point o a (new): (oa) ‘reversal’ means the voluntary or involuntary release of carbon back into the atmosphere; in the case of geological storage of CO2, ‘reversal’ has the same meaning as leakage as defined in Article 3(5) of Directive 2009/31/EC or during CO2 transportation;

RemovedArticle 4 – paragraph 7: 7. The baseline shall be regularly reviewed and updated by the Commission at least every ten years.

AddedArticle 2 – paragraph 1 – point o b (new): (ob) ‘carbon farming sequestration unit’ means one tonne of certified net carbon farming sequestration benefit generated by carbon farming sequestration;

RemovedThe standardised baselines will be set out in the delegated acts establishing tailored certification methodologies, but should be regularly reviewed to reflect developments. On the other hand, a period less than 10 years may not be appropriate for several activities, e.g. DACCS or forestry activities.

AddedArticle 2 – paragraph 1 – point o c (new): (oc) ‘carbon storage product unit’ means one tonne of certified net carbon product sequestration benefit generated by carbon storage in products and registered by a certification scheme;

RemovedArticle 5 – paragraph 1 – introductory part: 1. A carbon removal activity shall be additional. To that end, the carbon removal activity shall meet the following criterion:

AddedArticle 2 – paragraph 1 – point o d (new): (od) ‘carbon farming emission reduction unit’ means one tonne of certified net carbon farming carbon reduction, net carbon farming nitrogen reduction or net carbon farming methane reduction benefit generated by carbon farming emission reduction and registered by a certification scheme, and separated and identified either as a ‘carbon farming emission reduction unit - carbon’, ‘carbon farming emission reduction unit - nitrogen’, or ‘carbon farming emission reduction unit - methane’;

RemovedArticle 5 – paragraph 1 – point a: (a) it goes beyond Union and national statutory requirements at the level of the individual operator.

AddedArticle 3 – paragraph 1 – introductory part: Carbon removals, carbon farming or carbon storage in products shall be eligible for certification under this Regulation where they meet both of the following conditions:

RemovedIn accordance with recital 11 of the Commission proposal, regulatory additionality concerns any activities already imposed upon the operators by the applicable law, not Member State targets or requirements which are outside of the control of the individual operator and do not apply directly to the individual operator.

AddedArticle 3 – paragraph 1 – point a: (a) they comply with the quality criteria set out in Articles 4 to 7;

RemovedArticle 5 – paragraph 1 – point b: deleted

AddedArticle 3 – paragraph 1 – point a a (new): (aa) they comply with the rules on use of units set out in Article 3a;

RemovedIt is unclear how the incentive effect of certification can be demonstrated before the certification has been applied. Moreover, all major pilot projects are partially incentivised through e.g. the Innovation Fund and it is unclear how to distinguish between the incentive effect of this support and the incentive effect of certification.

AddedArticle 3 a (new): Article 3a / Rules on the issuance and use of units / 1. Carbon farming sequestration and emission reduction units shall be issued by 31 December each year, provided that an annual monitoring check does not show any non-compliance with the requirements set out in this Regulation and does not show a reversal. The certification body shall be responsible for the annual monitoring check based on reliable real-world data, which may be provided by a legal person or relevant authority, such as the paying agency, with the aid of the identification system for agricultural parcels provided for in Article 68 of Regulation (EU) 2021/2116. The annual monitoring check shall be performed by 15 October each year. The certification body shall transmit data on any non-compliance or reversal to the certification scheme within one month of the monitoring check. / 2. Any use of units shall ensure the highest integrity of climate mitigation and shall lead to an overall lower concentration of greenhouse gas emissions in the atmosphere. All removals, sequestration and emission reductions generated under this Regulation shall contribute to achieving the Union’s nationally determined contributions (NDCs) and climate targets and objectives as set out in Regulation (EU) 2021/1119 and shall not contribute to a third country’s NDC. / 3. A certified unit shall not be used or claimed by more than one legal or natural person at any point in time, and shall not be counted towards more than one Member State’s …

RemovedArticle 5 – paragraph 2: 2. Where the baseline is established pursuant to Article 4(5), additionality as referred to in paragraph 1 is considered to be complied with. Where the baseline is established pursuant to Article 4(6), additionality as referred to in paragraph 1 shall be demonstrated through specific tests.

AddedArticle 4 – paragraph 1 – subparagraph 1: Net carbon removal benefit = CRbaseline – CRtotal – GHGassociated > 0

RemovedArticle 6 – title: Storage, monitoring, validity and expiry, and liability

AddedArticle 4 – paragraph 1 – subparagraph 2 – point c: (c) GHGassociated is the increase in direct and indirect greenhouse gas emissions, over the entire life cycle of the activity which are due to the implementation of the carbon removal activity, calculated in accordance with protocols set forth in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories. This includes, among others, emissions due to energy use, transportation, material inputs, displacement effects due to competing demand for energy or waste heat, and direct and indirect land use change, and covers both impacts within and outside the Union. The certification of a carbon removal activity based on the storage of CO2 from sustainable biomass shall not lead to an increase of the capacity of the plant beyond what is necessary for the carbon capture and storage.

RemovedArticle 6 – paragraph 1: 1. An operator or group of operators shall demonstrate that a carbon removal activity ensures that carbon is permanently stored or is stored temporarily but on a long-term basis.

AddedArticle 4 – paragraph 2: 2. A carbon farming activity shall provide net benefits, which shall be quantified using the following formulas: / Net carbon farming sequestration benefit = (CSbaseline – CStotal) – GHGassociated > 0, where: / (a) CSbaseline is the carbon sequestration under the baseline, / (b) CStotal is the total carbon sequestration of the carbon farming activity, / (c) GHGassociated is the direct and indirect greenhouse gas emissions over the entire life cycle of the activity, which are due to the implementation of the carbon farming activity. This includes, among others, emissions due to energy use, transportation, material inputs, and direct and indirect land use change, and covers both impacts within and outside the Union. / Net carbon farming carbon reduction benefit = (RCbaseline – RCtotal – GHGassociated) > 0 / Net carbon farming nitrogen reduction benefit = (N2Obaseline – N2Otota– GHGassociated) > 0 / Net carbon farming methane reduction benefit = (CH4baseline - CH4total– GHGassociated’) > 0 / where: / (a) RCbaseline is the carbon emissions under the baseline; / (b) RCtotal is the total reduction in carbon emissions achieved through the implementation of the carbon farming activity, / (c) GHGassociated is the direct and indirect greenhouse gas emissions over the entire life cycle of the activity, which are due to the implementation of the carbon farming activity. This includes, among others, emissions due to energy use, transportation, material inputs, and direct and indirect land…

RemovedThe verb “aim” indicates that the legislator does not establish a legal obligation and should therefore be deleted. Demonstrating permanent or long-term storage is a key component to ensure trust and transparency.

AddedArticle 4 – paragraph 2a: 2a. A carbon storage in products activity shall provide a net carbon storage in products benefit, which shall be quantified using the formula: / Net carbon product sequestration benefit = CPSbaseline – CPStotal – GHGassociated > 0 / (a) CPSbaseline is the carbon sequestered in a product under the baseline; / (b) CPStotal is the total carbon sequestered in the product of the activity; / (c) GHGassociated is the increase in direct and indirect greenhouse gas emissions, over the entire life cycle of the activity which are due to the implementation of the carbon removal activity. This includes, among others, emissions due to energy use, transportation, material inputs, displacement effects due to competing demand for energy or waste heat, and direct and indirect land use change, and covers both impacts within and outside the Union.

RemovedArticle 6 – paragraph 2 – introductory part: 2. For the purposes of paragraph 1, an operator or group of operators shall comply with the minimum requirements on monitoring, expiry and liability for carbon removals set out in paragraphs 2a to 2c:

AddedArticle 4 – paragraph 3: 3. Quantities referred to in paragraph 1 points (a), (b) and (c), in paragraph 2, points (a), (b), (c), (d), (e), (f) and (g), and in paragraph 2a, points (a), (b) and (c), shall be designated with a negative sign (-) if they are net greenhouse gas removals or, in the case of carbon farming emission reductions, net greenhouse gas reductions, and with a positive sign (+) if they are net greenhouse gas emissions, they shall be expressed in tonnes of carbon dioxide equivalent.

RemovedPermanent and temporary carbon storage can both contribute to climate policy, but under different conditions and requirements to avoid overaccounting of removals. The requirements on monitoring, rules on expiry and liability therefore need to be much stricter in case of non-permanent carbon storage.

AddedArticle 4 – paragraph 4: 4. Carbon removals, carbon farming and carbon storage in products shall be quantified in a relevant, accurate, complete, consistent, comparable and transparent manner. Uncertainties in the quantification of carbon removals shall be duly reported and accounted as part of the certification methodologies, in a manner that is conservative, proportionate to the level of uncertainty, and in accordance with recognised statistical approaches and the latest available scientific evidence.

RemovedArticle 6 – paragraph 2 – point a: deleted

AddedArticle 4 – paragraph 5: 5. In the case of carbon removals or carbon storage in products, the standardised baseline shall be representative of the state-of-the-art performance of common current practices of comparable activities in similar social, economic, environmental and technological circumstances and take into account the geographical context.

RemovedArticle 6 – paragraph 2 – point b: deleted

AddedArticle 4 – paragraph 5 a: 5a. In the case of carbon farming, the standardised baseline shall be representative of the performance of common current practices of comparable activities in similar social, economic, environmental and technological circumstances and take into account the geographical context. In the case of carbon farming sequestration, the calculation of the standardised baseline shall not take into account those common current practices of comparable carbon farming sequestration activities that result in net greenhouse gas emissions. In the case of carbon farming emission reduction, the calculation of the standardised baseline shall not take into account those common current practices of comparable carbon farming emission reduction activities that result in increased net greenhouse gas emissions. The respective methodologies shall differentiate between static or dynamic baselines where necessary.

RemovedReplaced by following amendments.

AddedArticle 4 – paragraph 6: 6. By way of derogation from paragraph 5, where duly justified in the applicable certification methodology by the absence of sufficient comparable activities to be able to set a representative baseline, the baseline may be based on the individual performance of that activity at the start of that activity.

RemovedArticle 6 – paragraph 2 a (new): 2a. An operator or group of operators shall monitor and mitigate any risk of release of the stored carbon occurring during the monitoring period, which shall be set as follows: / (a) for permanent carbon storage, the monitoring period shall be consistent with the monitoring as set out in Articles 13 and 18 of Directive 2009/31/EC; / (b) for carbon permanently chemically bound in products, the monitoring period shall be consistent with the delegated act concerning the requirements for considering that greenhouse gases have become permanently chemically bound adopted in accordance with Article 12(3b) of Directive 2003/87/EC; / (c) for carbon storage in long-lasting products, the monitoring period shall cover the entire lifetime of the product until and including the end of life of the product; / (d) for carbon farming, the monitoring period shall cover the entire duration of the activity until and including the end of the activity;

AddedArticle 4 – paragraph 7: 7. The baseline shall be regularly reviewed and updated by the Commission at least every five years. The baseline shall remain constant for the operator throughout the monitoring period once an activity has started, but shall be reviewed and updated upon re-certification.

RemovedCarbon stored through carbon farming and storage in long-lasting products is more likely to be released back into the atmosphere at some point in time and should therefore be monitored and traced during the entire storage lifetime or activity (e.g. until and including disposal of a harvested wood product used in construction).

AddedArticle 4 – paragraph 8: deleted

RemovedArticle 6 – paragraph 2 b (new): 2b. Unless an operator or group of operators demonstrates that the carbon storage is ongoing through continuous monitoring activities, the validity of the underlying carbon removal units shall expire: / (a) for permanent carbon storage and carbon permanently chemically bound in products, in case of reversal; / (b) for carbon storage in long-lasting products and carbon farming, in case of reversal or at the end of the monitoring period, at which point the carbon stored by a carbon removal activity shall be considered released to the atmosphere.

AddedArticle 4 – paragraph 9: 9. To support the quantification of carbon farming, the operator or group of operators shall gather data on carbon sequestration and greenhouse gas emissions based on the use of Tier 3 methodologies in accordance with the 2006 IPCC guidelines for National Greenhouse Gas inventories, and 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, taking into account the objective of minimising the administrative burden for small-scale operators in accordance with Article 8(3) of this Regulation.

RemovedCertificates related to carbon farming activities and long-term carbon storage in long-lasting products should only be valid as long as there is effective storage. In case of uncertainty or the end of storage, they should expire and result in invalidation, compensation or renewal of their use (see new article 7a).

AddedArticle 5 – paragraph 1 – introductory part: 1. Each activity shall be additional. To that end, the activity shall meet both of the following criteria:

RemovedArticle 6 – paragraph 2 c (new): 2c. An operator or group of operators shall be subject to appropriate liability mechanisms and appoint a liable party to be responsible for addressing any reversal from the carbon removal activity at any time: / (a) for permanent carbon storage, the liability mechanism shall be consistent with the mechanism referred to in Directive 2009/31/EC; / (b) for carbon permanently chemically bound in products, the liability mechanism shall be consistent with the delegated act concerning the requirements for considering that greenhouse gases have become permanently chemically bound adopted in accordance with Article 12(3b) of Directive 2003/87/EC; / (c) for carbon storage in long-lasting products and carbon farming and, the liability mechanism shall be one or more of the following options, as duly justified in the applicable certification methodology: up-front insurance, collective buffers or accounts of carbon removal units, or discounting of carbon removal units.

AddedArticle 5 – paragraph 1 – point a: (a) it goes beyond Union and national statutory requirements at the level of the individual operator;

RemovedIn case of expiration, there should always be a liability mechanism, including a liable party, to remediate intentional or unintentional reversals.

AddedArticle 5 – paragraph 1 – point b: (b) the incentive effect of the certification is needed for the activity to become financially attractive.

RemovedArticle 6 – paragraph 3: deleted

AddedArticle 5 – paragraph 2: (2) Where the baseline is established pursuant to Article 4(5) or (5a), additionality as referred to in paragraph 1, point (a) is considered to be complied with. Where the baseline is established pursuant to Article 4(6), additionality as referred to in paragraph 1, points (a) and (b), shall be demonstrated through specific tests set out as part of the certification methodologies referred to in Article 8.

RemovedMoved to the new paragraphs 2a to 2c above.

AddedArticle 6 – title: Storage duration, monitoring and liability requirements

Change 15

ChangedArticle 76 – paragraph 1 – introductory part:1: 1. A carbon removal activity shall have at least a neutralAn impactoperator onor allgroup theof followingoperators sustainabilityshall objectivesensure and may generatedemonstrate positivethat co-benefitsa forcarbon oneremoval oractivity moreresults ofin the followingpermanent sustainabilitystorage objectives:of carbon.