Changes from report parliamentary committee draft to plenary report

Change 16

RemovedEach carbon removal activity should comply with all minimum sustainability objectives, but it is unreasonable to expect each activity to generate a positive co-benefit for all of these activities.

AddedArticle 6 – paragraph 1 a (new): 1a. An operator or group of operators shall ensure and demonstrate that a carbon farming activity results in the long-term sequestration of carbon, the reduction of greenhouse gas emissions, or both.

RemovedArticle 7 – paragraph 1 – point f a (new): (fa) food security.

AddedArticle 6 – paragraph 1 b (new): 1b. An operator or group of operators shall ensure and demonstrate that a carbon storage in products activity results in the long-term storage of carbon.

RemovedCarbon removals should not displace food production and jeopardise the supply of food.

AddedArticle 6 – paragraph 2: 2. For the purposes of paragraphs 1, 1a and 1b, an operator or group of operators shall comply with the following criteria set out in paragraphs 2a to 2e. / (deleted) / (deleted)

RemovedArticle 7 – paragraph 2: 2. For the purposes of paragraph 1, a carbon removal activity shall comply with minimum sustainability requirements laid down in the certification methodologies, set out in the delegated acts adopted pursuant to Article 8. Those minimum sustainability requirements shall, as appropriate, and taking into consideration local conditions, build on the technical screening criteria for the ‘do no significant harm’ principle concerning forestry activities and underground permanent geological storage of CO2, laid down in Delegated Regulation (EU) 2021/2139, and on the sustainability criteria for forest and agriculture biomass raw material laid down in Article 29 of Directive (EU) 2018/2001.

AddedArticle 6 – paragraph 2 a (new): 2a. An operator or group of operators shall monitor and mitigate any risk of a release of the stored carbon occurring during the monitoring period, which shall be set as follows: / (a) for carbon removal activities, the monitoring period and requirements shall be consistent with Articles 13, 17 and 18 of Directive 2009/31/EC; / (b) for carbon farming activities, the monitoring period and requirements shall cover at least the entire period during which the results of the activity are projected to be sustained as set out in the applicable certification methodology; / (c) for carbon storage in products activities, the monitoring period shall cover the entire lifetime of the product until and including the end of life of the product.

RemovedSustainability requirements should be consistent with the relevant technical screening criteria and sustainability criteria in RED.

AddedArticle 6 – paragraph 2 b (new): 2b. A carbon farming operator or group of operators may designate a legal person or relevant authority, such as the paying agency within the meaning of Article 9 of Regulation (EU) 2021/2116 in the case of carbon farming activities registered in the identification system for agricultural parcels, to be responsible for the monitoring, subject to all requirements under this Regulation being met.

RemovedArticle 7 – paragraph 3 a (new): 3a. Certificates shall clearly indicate whether the carbon removal activity has a neutral impact on or generates positive co-benefits for each of the sustainability objectives.

AddedArticle 6 – paragraph 2 c (new): 2c. An operator or group of operators shall be subject to appropriate liability mechanisms, and designate a liable natural or legal person to be responsible for addressing any reversal, including due to force majeure, at any point in time during the activity: / (a) for carbon removal activities, the liability mechanism shall be consistent with the liability mechanism set out in Directive 2009/31/EC; / (b) for carbon farming activities, the liability mechanism shall be set out and approved as part of the applicable certification methodology and ensure that equivalent carbon sequestration is generated as compensation for the reversal; / (c) for carbon storage in products activities, the liability mechanism shall be set out and approved as part of the applicable certification methodology and ensure that equivalent carbon storage is generated as compensation for the reversal. / The certification scheme shall continuously monitor and ensure the availability and readiness of the liability mechanism throughout the monitoring period of an activity.

RemovedActivities with positive co-benefits are expected to generate a higher value. To facilitate this, the certificates and the Union registry should clearly distinguish between activities with positive versus neutral impacts.

AddedArticle 6 – paragraph 2 d (new): 2d. In case of a reversal, the corresponding units shall be suspended in the certification registry where they are registered until the reversal has been addressed by the liability mechanism in accordance with paragraph 2c. / Where a reversal is not addressed within a reasonable timeframe through the liability mechanism in accordance with paragraph 2c, the validity of a certificate shall expire and the corresponding units shall be cancelled in the certification registry where they are registered.

RemovedArticle 8 – paragraph 2: 2. The Commission, after consulting the Expert Group on Carbon Removals, shall adopt delegated acts in accordance with Article 16 to establish the technical certification methodologies referred to in paragraph 1 for activities related to permanent carbon storage, carbon farming and carbon storage in products. Those certification methodologies shall include at least the elements set out in Annex I.

AddedArticle 6 – paragraph 2 e (new): 2e. Where the validity of a certificate has expired in accordance with paragraph 2a, point (c), the operator or group of operators shall pay a corrective penalty reflecting the carbon cost of the amount of carbon released to the atmosphere. The Commission is empowered to adopt delegated acts in accordance with Article 16 to supplement this Regulation by establishing the formula for the calculation of the penalties and the arrangements for the payment of the penalties.

RemovedArticle 8 – paragraph 2 – subparagraph 1 a (new): The Commission shall prioritise the development of technical certification methodologies for types of activities that are the most mature, have the largest potential for carbon storage and, in the case of carbon farming activities, that have the largest potential to provide positive co-benefits for biodiversity.

AddedArticle 6 – paragraph 3: 3. For carbon farming and carbon storage in products, the net benefit generated by the activity during the entire lifetime of the activity shall be considered released to the atmosphere at the end of the monitoring period or, in the event that the monitoring has been discontinued, before the end of the monitoring period, and the corresponding units shall be cancelled in the certification registry where they are registered, unless the operator or the group of operators carry out a re-certification of the activity and demonstrate the continuation of the activity and monitoring period. However, a carbon farming activity shall not lead to a decreased carbon sink, as defined in Regulation (EU) 2018/841, compared to the baseline beyond the monitoring period.

RemovedArticle 8 – paragraph 2 – subparagraph 1 b (new): The technical certification methodologies for activities related to carbon permanently chemically bound in products or materials shall be consistent with the delegated act to be adopted in accordance with Article 12(3b), second subparagraph, of Directive 2003/87/EC.

AddedArticle 7 – paragraph 1: 1. A carbon removal activity shall at least have a neutral impact on each of, and may generate co-benefits for one or more of, the following sustainability objectives: / (a) climate change mitigation beyond the net benefit referred to in Article 4(1); / (aa) the avoidance of the risk of carbon leakage in third countries; / (d) transition to a circular economy, including the efficient use of sustainably sourced bio-based materials;

RemovedArticle 8 – paragraph 2 – subparagraph 1 c (new): The technical certification methodologies for activities related to carbon storage in long-lasting products or materials shall be consistent with the Commission report on the possible benefits and trade-offs of the inclusion of sustainably sourced long-lived carbon storage products that have a net-positive carbon sequestration effect in accordance with Article 17(3) of Regulation (EU) 2018/841.

AddedArticle 7 – paragraph 1a (new): 1a. A carbon farming activity shall at least generate co-benefits for the sustainability objective referred to in point (f) of this paragraph, and shall at least have a neutral impact on each of the sustainability objectives listed in points (a) to (ea) or may generate co-benefits for one or more of the sustainability objectives listed in points (a) to (ea) as follows: / (a) climate change mitigation beyond the net carbon farming benefit referred to in Article 4(1a); / (b) climate change adaptation; / (c) sustainable use and protection or improvement of water quality and marine resources; / (d) transition to a circular economy, including the efficient use of sustainably sourced bio-based materials; / (e) pollution prevention and control; / (ea) prevention of soil degradation, soil restoration, improvement of soil fertility and of nutrient management and soil biota; / (f) protection and restoration of biodiversity and ecosystems.

RemovedNot all methodologies can be presented at the same time or in the short term. The Commission should prioritise the methodologies for the most mature and promising activities. Methodologies for carbon storage in products should await the relevant delegated acts and assessments in ETS and LULUCF to ensure consistency.

AddedArticle 7 – paragraph 1b (new): 1b. A carbon storage in product activity shall at least have a neutral impact on each of, and shall generate co-benefits for at least one of, the following sustainability objectives: / (a) climate change mitigation beyond the net carbon farming benefit referred to in Article 4(1a); / (b) climate change adaptation; / (c) sustainable use and protection or improvement of water quality and marine resources; / (d) transition to a circular economy, including the efficient use of sustainably sourced bio-based materials; / (e) pollution prevention and control; / (ea) prevention of soil degradation, soil restoration, improvement of soil fertility and of nutrient management and soil biota; / (f) protection and restoration of biodiversity and ecosystems.

AddedArticle 7 – paragraph 1 c (new): 1c. Carbon farming activities shall not negatively affect the Union’s food security and shall not lead to land grabbing or land speculation. They shall respect the rights of local communities and indigenous people affected by those activities, both within and outside the Union, as well as the balance between the environmental, economic and social impact on local communities and small-scale land managers. / An activity under the scope of this Regulation shall not negatively affect other activities under the scope of this Regulation.

AddedArticle 7 – paragraph 2: 2. For the purposes of paragraphs 1, 1a, 1b and 1c, the Commission shall set out the minimum sustainability requirements for each type of activity in the relevant certification methodology, as part of the delegated acts adopted pursuant to Article 8. The minimum sustainability requirements shall take into account the impacts both within and outside the Union and local conditions. Those minimum sustainability requirements shall, where appropriate, be consistent with the technical screening criteria for the ‘do no significant harm’ principle concerning forestry activities and underground permanent geological storage of CO2 laid down in Delegated Regulation (EU) 2021/2139, and shall promote the sustainability of forest and agriculture biomass raw material in accordance with the sustainability and GHG saving criteria for biomass laid down in Article 29 of Directive (EU) 2018/2001.

AddedArticle 7 – paragraph 3: 3. Where an operator or group of operators report co-benefits that contribute to the sustainability objectives referred to in paragraph 1,1a or 1b beyond the minimum sustainability requirements referred to in paragraph 2, they shall comply with the certification methodologies set out in delegated acts referred to in Article 8. The certification methodologies shall incentivise the generation of co-benefits going beyond the minimum sustainability requirements for the objectives referred to in paragraph 1a and shall provide for the possibility of generating a carbon farming premium for such co-benefits, for which the Commission shall set out the methodology by delegated acts by ... [please insert the date one year from the entry into force of this Regulation]. Certificates shall indicate whether an activity has a neutral impact or generates co-benefits for the sustainability objectives.

AddedArticle 8 – paragraph 2: 2. The Commission shall adopt delegated acts in accordance with Article 16 to establish the technical certification methodologies referred to in paragraph 1 for each type of activity. Each certification methodology for each type of activity shall be subject to a separate delegated act. Those certification methodologies shall include at least the elements set out in Annex I. The first such delegated act shall be adopted by ... [please enter the date 12 months from the entry into force of this regulation]. / The Commission shall prioritise the development of certification methodologies for those types of activities that are the most mature, have the potential for generating the largest net benefits and the potential to provide the largest co-benefits. In the case of carbon farming activities, the Commission shall as a part of its prioritisation take into account in addition whether the activities contribute to sustainable management of agricultural land and forests. / The delegated acts referred to in the first subparagraph shall be reviewed periodically to include new or innovative activities, prepared in accordance with criteria listed in paragraphs 2a and 3. / The technical certification methodologies for activities related to carbon storage in products shall only be developed following and on the basis of the report to be presented by the Commission in accordance with Article 17(3) of Regulation (EU) 2018/841.

AddedArticle 8 – paragraph 2 a (new): 2a. Prior to adopting the delegated act referred to in paragraph 2 of this Article, the Commission shall consult the Platform referred to in Article 8a regarding the technical certification methodologies referred to in paragraph 2 of this Article.

AddedArticle 8 – paragraph 2 b (new): 2b. For each draft delegated act, the Commission shall carry out a thorough impact assessment, which shall be based on conclusive scientific evidence and a public consultation for a period of at least four weeks, and its final results shall be made public at the time of adoption of the related delegated act. / Within 6 months of ... [please insert the date of the entry into force of this Regulation], the Commission shall, in accordance with paragraph 2 and after consulting the Platform, publish guidance for potential carbon farming operators or groups of operators on the list of carbon farming activities that are to be prioritised in the preparation of the methodologies. That list may be periodically reviewed and extended.

AddedArticle 8 – paragraph 3 – point a: (a) the objectives of ensuring the robustness of the activities and recognising the protection and restoration of ecosystems;

AddedArticle 8 – paragraph 3 – point a a (new): (aa) the certification methodologies shall be based on the best available scientific evidence and the precautionary principle enshrined in Article 191 of the Treaty on the Functioning of the European Union;

AddedArticle 8 – paragraph 3 – point a b (new): (ab) the outcome of the public consultation and the advice of the Platform;

AddedArticle 8 – paragraph 3 – point a c (new): (ac) existing standards and best practices in the certification methodologies, where they comply with the requirements and criteria set out in this Regulation;

AddedArticle 8 – paragraph 3 – point b: (b) the objective of minimising administrative and financial burden and keeping the certification procedure as simple as possible for operators, particularly for small-scale carbon farming operators and for small- and medium-sized enterprises, without compromising the quality of the carbon removals or co-benefits;

AddedArticle 8 – paragraph 3 – point b a (new): (ba) the certification methodologies shall be easy to use and established in a manner that facilitates the verification of their compliance;

Article 8 – paragraph 3 a (new): 3a. The Commission shall make the certification methodologies publicly available.

Change 17

RemovedIt is important to ensure transparency on the underlying certification methodology in order to ensure trust, transparency and traceability of certified activities and certified carbon units.

AddedArticle 8 a (new): Article 8a / Platform on Carbon Removal, Carbon Farming and Carbon Storage in Product Activities / 1. The Commission shall establish a Platform on Carbon removal and Carbon farming Activities (the ‘Platform’). It shall be composed in a balanced manner of the following groups: / (a) representatives of: / (i) the European Environment Agency; / (ii) the European Scientific Advisory Board on Climate Change established under Article 10a of Regulation (EC) No 401/2009 of the European Parliament and of the Council1a; / (b) experts representing relevant private stakeholders, including farmers and forest owners or managers, and business sectors, representing relevant industries, involved in the areas covered by this Regulation; / (ba) representatives of certification schemes; / (c) experts representing civil society with expertise in the areas covered by this Regulation; / (d) experts appointed in a personal capacity who have proven knowledge and experience in the areas covered by this Regulation; / (e) experts representing academia, including universities, research institutes and other scientific organisations. / The members of the Expert Group on carbon removals shall be integrated into the groups of representatives and experts referred to in points (a) to (e) in a way that guarantees that groups in points (a) to (e) are represented in a balanced manner. / 2. The Platform shall: / (a) advise the Commission on the technical certification methodologies referred to in Article 8, includ…

RemovedArticle 8 a (new): Article 8a / General criteria on the issuance and use of carbon removal units / 1. A carbon removal unit shall not be double counted. / 2. Past and current holders and purposes for which a carbon removal unit is held shall be registered in the Union registry referred to in Article 12. / 3. Upon expiry of a carbon removal certificate in accordance with Article 6(2b), the corresponding carbon removal units shall either be invalidated and deducted or compensated for at an equivalent level for the purpose for which the unit is held.

AddedArticle 9 – paragraph 1: 1. To apply for a certification of compliance with this Regulation, an operator or a group 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 a certification body a comprehensive description of the activity, including the certification methodology applied to assess compliance with Articles 3a to 7, and the expected total net benefit. Groups of operators shall also specify how advisory services on activities are provided, in particular to small-scale operators, and what measures are taken to limit the administrative burden for land managers. For operators or groups of operators involved in cross-border or multi-country projects, a single certification body may be appointed for all cross-border and multi-country projects. / For carbon farming activities, Member States may provide advice to farmers in the framework of the advisory services referred to in Article 15 of Regulation (EU) 2021/2115. / For carbon farming, agricultural parcels registered in the Land Parcel Identification System (LPIS) set out in Article 68 of Regulation (EU) 2021/2116 on which a carbon farming activity certified by a certification scheme is taking place cannot be certified for the same activity by a different certification scheme. / In order to ensure consistency with Annex I (ba), for carbon farming, the following information shall be registered in the Identification system for agricultural parce…

RemovedTo avoid unsubstantiated uses of carbon removals for any purpose, any carbon removal units whose certificates have expired due to reversal, the end of storage or uncertainties on storage (see Article 6(2b)(new) should be invalidated or compensated at equivalent levels for the use.

AddedArticle 9 – paragraph 2: 2. The certification scheme shall appoint a certification body which shall conduct a certification audit to verify that the information submitted in accordance with paragraph 1 is accurate and reliable, and confirm compliance of the activity with Articles 3a to 7. When multiple different carbon farming activities take place at farm level, the certification audits may be conducted on a single occasion. When as a result of that certification audit the compliance of the information submitted in accordance with paragraph 1 has been verified, the certification 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, and make the certification audit report and the certificate publicly available in full or, where necessary to preserve the confidentiality of commercially sensitive information in conformity with the relevant Union and national law, excluding that commercially sensitive information, in the Union registry referred to in Article 12.

Change 18

ChangedArticle 9 – paragraph 2:3: 2.3. The certification body shall conductcarry aout certificationperiodic auditre-certification audits to reconfirm compliance of the activity with Articles 3a to 7 and verify the informationgenerated submittednet inbenefit. accordanceRe-certification withaudits paragraphshall 1take andplace toat confirmleast complianceevery of5 theyears for carbon removalfarming activityactivities, withand Articlesat 4least toevery 7.10 years for other activities, following a risk-based approach. As a result of that certificationre-certification audit, the certification body shall issue a certificationre-certification audit report, that includes a summary, and a certificate containing, as a minimum, the information set out inan Annexupdated II.certificate. The certification scheme shall control the certificationre-certification audit report and the updated certificate, and make the certificationre-certification audit reportreport, the updated certificate and the certificatecertified carbon removal units publicly available in full or, where necessary to preserve the confidentiality of commercially sensitive information,information in anconformity abridgedwith form,the relevant Union and national law, excluding that commercially sensitive information, in the Union registry referred to in Article 12.

Change 19

RemovedIn order to ensure trust, transparency and traceability of certified activities and certified carbon units, it is important to ensure transparency on the certification audits, while respecting the privacy of commercially sensitive business information.

AddedArticle 9 – paragraph 4: 4. The operator or a group of operators shall support the certification body during certification and re-certification audits, notably by giving access to the activity premises and providing any data and documentation required.

RemovedArticle 9 – paragraph 3: 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 the generated carbon benefit. As a result of that re-certification audit, the certification body 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 re-certification audit report, the updated certificate and the certified carbon removal units publicly available in full or, where necessary to preserve the confidentiality of commercially sensitive information, in an abridged form, in the Union registry referred to in Article 12.

AddedArticle 9 – paragraph 4 a (new): 4a. Certification bodies shall be remunerated by the certification scheme in order to ensure the independence of the certification or re-certification audits.

RemovedIn order to ensure trust, transparency and traceability of certified activities and certified carbon units, it is important to ensure transparency on the certification audits, while respecting the privacy of commercially sensitive business information.

AddedArticle 9 – paragraph 5: 5. The Commission shall no later than ... [please insert the date 12 months from the entry into force of this Regulation] adopt implementing acts to set out the structure, format, technical details of the comprehensive description of the 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 in accordance with the examination procedure referred to in Article 17.

RemovedArticle 9 – paragraph 4: 4. The operator or a group of operators shall support the certification body during certification and re-certification audits, notably by giving access to the activity premises and providing any required data and documentation.

Article 10 – paragraph 1: 1. Certification bodies appointed by certification schemes shall be accredited by a national accreditation authority pursuant to Regulation (EC) No 765/2008 of the European Parliament and of the Council37. The list of accredited certification bodies shall be made publicly available in the Union registry referred to in Article 12.

Change 20

RemovedIn order to ensure trust, transparency and traceability of certified activities and certified carbon units, it is important to ensure transparency on the accredited certification bodies.

AddedArticle 10 – paragraph 2 – point b: (b) legally and financially independent from the operators or from a group of operators, and carry out the activities required under this Regulation in the public interest.

Change 21

ChangedArticle 10 – paragraph 4: 4. Member States and, where applicable, regional authorities shall supervise the operation of certification bodies. Certification bodies shall submit, upon request by the national and, where applicable, regional competent authorities, all relevant information necessary to supervise their operation, including date, time and location of the audits referred to in Article 9. Where Member StatesStates, and when applicable, regional authorities, find issues of non-conformity, they shall inform the certification body and the relevant certification scheme thereof without delay and the corresponding information shall be madepublish publiclythat availablenotice throughin the Union registry referred to in Article 12.

Change 22

RemovedIn order to ensure trust, transparency and traceability of certified activities and certified carbon units, it is important to ensure transparency on any issues of non-conformity of an accredited certification body.

AddedArticle 11 – paragraph 2: 2. Certification schemes shall operate on the basis of reliable and transparent rules and procedures, in particular with regard to internal management and monitoring, handling of complaints and appeals, stakeholder consultation, transparency and publication of information, appointment and training of certification bodies and addressing non-conformity issues. For the purpose of handling complaints and appeals, certification schemes shall put in place easily accessible complaint and appeal procedures. Those procedures shall be made publicly available in the Union registry referred to in Article 12.

RemovedArticle 11 – paragraph 2: 2. Certification schemes shall operate on the basis of reliable and transparent rules and procedures, in particular with regard to internal management and monitoring, handling of complaints and appeals, stakeholder consultation, transparency and publication of information, appointment and training of certification bodies, addressing non-conformity issues, development and management of registries. Certification schemes shall provide the information on those rules and procedures to the Commission to be made publicly available in the Union registry referred to in Article 12.

AddedArticle 11 – paragraph 3: 3. Certification schemes shall verify if the information and data submitted by the operator 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 and the re-certification audit reports were carried out in an accurate, reliable, and cost-effective manner.

RemovedIn order to ensure trust, transparency and comparability of certified activities and certified carbon units, it is important to ensure transparency on the rules and procedures applied by certification schemes.