What changed between the draft committee report and the plenary report

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

5 unchanged paragraphs

on the proposal for a regulation of the European Parliament and of the Council establishing a Union certification framework for carbon removals

(COM(2022)0672 – C90399/2022 – 2022/0394(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2022)0672),

Changed:– having regard to to Article 294(2) and Article 192(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C9-0399/2022),

–– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the opinion of the European Economic and Social Committee of 22 March 2023,

– having regard to the opinion of the Committee of the Regions of 8 February 2023,

Changed:– having regard to RulesRule 59 of its Rules of Procedure,

– having regard to the opinion of the Committee on Agriculture and Rural Development,

– having regard to the letter from the Committee on Industry, Research and Energy,

Changed:– having regard to the report of the Committee on the Environment, Public Health and Food Safety (A90000/2023),(A9-0329/2023),

1. Adopts its position at first reading hereinafter set out;

Added:2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Change 1

Removed:Recital 1 a (new): (1a) According to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC), drastic and immediate greenhouse gas emission reductions are essential, but effectively all emission reduction pathways that limit warming to 1,5°C with no or limited overshoot, as well as those that limit warming to 2°C, will also require a significant scale-up of carbon removals between 2020 and 21001a, in particular for sectors such as agriculture, aviation, shipping and industrial processes. For the Union, corresponding carbon removal levels have been estimated to need to reach ranges of between 300 and 500 MtCO2, depending on the emission reduction pathway1b. / 1a IPCC AR6 Synthesis Report (2023). (Longer Report). / 1b Staff Working Document “Sustainable carbon cycles for a 2050 climate-neutral EU - Technical Assessment”.

Added:Title: Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a Union certification framework for carbon removals, carbon farming and carbon storage in products

Removed:Recital 1 b (new): (1b) Afforestation, reforestation, improved forest management, agroforestry and soil carbon sequestration are currently the only widely practiced carbon removal methods according to the IPCC and other scientific evidence, while the current global deployment of novel carbon removal methods, such as bioenergy with carbon capture and storage (BECCS) or direct air carbon capture and storage (DACCS), is far below that required for modelled pathways limiting global warming to between 1,5°C and 2°C and would need to grow by four to six orders of magnitude by mid-century to meet the Paris Agreement temperature goals1a, 1b. / 1a IPCC AR6 Synthesis Report (2023). / 1b The State of Carbon Dioxide Removal. A Global, Independent Scientific Assessment of Carbon Dioxide Removal. (2023). https://static1.squarespace.com/static/633458017a1ae214f3772c76/t/63e3d4602156db24bc18c91c/1675875445298/SoCDR-1st-edition.pdf

Added:Recital 1: (1) Under the Paris Agreement adopted under the United Nations Framework Convention on Climate Change22 ('the Paris Agreement'), the international community has agreed to hold the increase in the global average temperature well below 2° C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5° C above pre-industrial levels. That commitment has been reinforced with the adoption, under the UNFCCC, of the Glasgow Climate Pact on 13 November 2021, in which the Conference of the Parties to the UNFCCC, serving as the meeting of the Parties to the Paris Agreement, recognises that the impacts of climate change will be much lower at a temperature increase of 1,5 ºC, compared with 2 ºC, and resolves to pursue efforts to limit the temperature increase to 1,5 ºC. The Union and its Member States are Parties to the Paris Agreement and are strongly committed to its implementation by reduction of greenhouse gas emissions and increase in carbon removals and carbon farming.

Change 2

Changed:Recital 2: (2)2) At a global scale, the latest report23 by the International Panel on Climate Change (IPCC) points towards a decreasing likelihood of limiting global warming to 1.5 °C unless rapid and deep cuts in global greenhouse gas (GHG) emissions occur throughout the ongoing and forthcoming decades. The IPCC report also clearly states that carbon removal can fulfil three complementary roles:‘while loweringreaching net zero carbon dioxide (CO2) or net greenhouse gas emissions in the near term; counterbalancing ‘hard-to-abate’ residual emissions to help reach net zero CO2 or greenhouse gas emissions, and achieving net negative CO2 or greenhouse gasGHG emissions if deployed atrequires levelsdeep exceedingand annualrapid residualreductions emissions23ain andgross thatemissions, ‘thethe deployment of carbon dioxide removal to counterbalance hard-to-abate residual emissions is unavoidable if net-zero carbon dioxide (CO2) or GHG emissions are to be achieved’.achieved’ and that ‘carbon dioxide removal (CDR) will be necessary to achieve net negative CO2 emissions’. This will require the large-scale deployment of safe and sustainable activities for capturing CO2 from the atmosphere and durably storing it in geological reservoirs, terrestrial and marine ecosystems, or products. Today and with current policies, the Union is not on track to deliver the required carbon removals: carbon removals in terrestrial ecosystems have been decreasing in recent years, and no significant industrial carbon removals are currently taking place in the Union. / 23a23 ibidemIPCC (2023). Sixth Assessment Report (AR 6 Synthesis Report).

Change 3

Changed:Recital 3: (3) The aim of this Regulation is to develop a voluntary Union certification framework for carbon removals, carbon farming and carbon storage in products, with the view to incentivise the uptake of safe, sustainable and high-quality carbon removals, carbon farming activities and carbon storage in products, in full respect of the biodiversity and the zero-pollution objectives. It is a tool to support the achievement of the Union objectives under the Paris Agreement, notably the goal of collective climate neutrality by 2050 laid down in Regulation (EU) 2021/1119 of the European Parliament and of the Council24. TheCouncil24, Unionas alsoa committedcomplement to generate negative emissionsthe afterirreversible 2050.and Ingradual accordancereduction withof Regulationanthropogenic (EU)greenhouse 2021/1119,gas priorityemissions shouldacross beall givensectors to reductions in direct emissions, which willmeet havethe toobjectives beand complementedtargets bylaid increaseddown carbonin removalsthat inRegulation orderand tothe achievegoals climateof neutrality.the RegulationParis (EU)Agreement. 2021/1119The recognisesUnion thatalso carboncommitted sinksto includegenerate naturalnegative andemissions technologicalafter solutions.2050. An important instrument to enhance carbon removals in terrestrial ecosystems is Regulation (EU) 2018/841 of the European Parliament and of the Council25, which was recently amended. The objective of the review is to set out a Union net removals target of 310 Mt CO2 eq by 2030, and to allocate respective targets to each Member State.Council25.

Change 4

Changed:Recital 4: (4) The Union certification framework will support the development of carbon removal activities in the Union that result in an unambiguous netregarding carbon removal benefit, while avoiding greenwashing. In the case of geological storage, the potential forremoval, carbon storage has been extensively explored and is available in third countries such as Norwayfarming and Iceland. The Union certification framework should therefore also allow the certification of carbon removal activities where the geological storage takes place in third countries, on the condition that the carbon is captured in the Union andproducts that those third countries apply the same legal requirements as provided forresult in Directive 2009/31/EC of thean Europeanunambiguous Parliamentnet andbenefit, ofwhile theavoiding Council.greenwashing. In the case of carbon farming, such certification framework should also encourage the uptake of carbon removal activities that generate co-benefits for biodiversity, therefore achieving the nature restoration targets set out in Union law on nature restoration. The Union certification framework will be instrumental in meeting the Union climate change mitigation objectives set in international agreements and in the Union legislation.

Change 5

Removed:Recital 5: (5) In order to support operators willing to make additional efforts to increase carbon removals in a sustainable way, the Union certification framework should take into account the different types of carbon removal activities, their specificities and related environmental impacts. Therefore, this Regulation should provide clear definitions of carbon removal which are consistent with scientific and international standards under the IPCC1a, and of carbon removal activities, and other elements of the Union certification framework. / 1a Van Diemen, R. et al. IPCC, 2022: Annex I: Glossary. in IPCC, 2022: Climate Change 2022: Mitigation of Climate Change. Contribution of Working Group III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (eds. Shukla, P. R. et al.) (Cambridge University Press, 2022). (IPCC_AR6_WGIII_Annex-I.pdf).

Added:Recital 4 a (new): (4a) Several Members of the European Economic Area (EEA) and other third countries bordering the Union, such as Norway or Iceland, have significant potential for geological storage of CO2. Therefore, where a legally binding agreement has been concluded between the Union and a Member of the EEA or another third country bordering the Union and that country applies the same legal requirements as those set out in Directive 2009/31/EC, the Union certification framework should also apply to atmospheric or biogenic carbon captured in the Union but geologically stored in that Member of the EEA, or in that country bordering the Union.

Removed:Recital 5 a (new): (5a) The different types of carbon removal activities vary in terms of the removal process, the storage medium and the timescales of the storage, which can vary from decades to centuries for carbon farming or storage in certain products, to permanent storage in geological formations1a 1b where it is estimated that the carbon can be permanently isolated from the atmosphere if the geological storage site is appropriately selected and managed1c. Both permanent and temporary but long-term carbon removals can contribute to meeting climate goals, but under different conditions. Those conditions should be more strict for temporary carbon removals, in terms of monitoring, expiry and liability requirements1d, 1e. / 1a Babiker, M. et al. Cross-sectoral perspectives. in IPCC, 2022: Climate Change 2022: Mitigation of Climate Change. Contribution of Working Group III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (eds. Shukla, P. R. et al.) (Cambridge University Press, 2022). / 1b Smith, S. M., et al. (2023). The State of Carbon Dioxide Removal - 1st Edition. The State of Carbon Dioxide Removal. doi:10.17605/OSF.IO/W3B4Z / 1c IPCC (2023). Sixth Assessment Report (AR 6 Synthesis Report). / 1d Smith, S. M., et al. (2023). The State of Carbon Dioxide Removal - 1st Edition. The State of Carbon Dioxide Removal. doi:10.17605/OSF.IO/W3B4Z / 1e Matthews, D. H. et al. (2022). Temporary nature-based carbon removal can lower peak warming in a well-below 2 °C scenario…

Added:Recital 4 b (new): (4b) The Union certification framework should also encourage research and innovation, whilst emphasising the role of Horizon Europe missions, as well as other programmes in the field of technologies with carbon removal capacity, taking into account the existing processes and possible developments with the aim of facilitating access to the market for new technologies.

Removed:Recital 5 b (new): (5b) There is currently no scientific consensus on durability of carbon removals in terms of the thresholds or timescales of storage. However, it is widely accepted that storage which re-releases carbon within a few years or less, such as direct air carbon capture used to produce fuels, or biomass used as food, does not constitute a form of carbon removal, while the IPCC and existing government and voluntary standard-setting schemes consider carbon removals as durable only if the carbon is stored for decades or more1a, 1b. / 1a Smith, S. M., et al. (2023). The State of Carbon Dioxide Removal - 1st Edition. The State of Carbon Dioxide Removal. doi:10.17605/OSF.IO/W3B4Z. / 1b Babiker, M. et al. Cross-sectoral perspectives. in IPCC, 2022: Climate Change 2022: Mitigation of Climate Change. Contribution of Working Group III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (eds. Shukla, P. R. et al.) (Cambridge University Press, 2022).

Added:Recital 4 c (new): (4c) In this regard, the Commission and the Member States should engage in cross-disciplinary cooperation, involving national and regional research institutions, scientists, farmers and small and medium-sized enterprises.

Removed:Recital 5 c (new): (5c) Carbon stored in products should either be permanently chemically bound in a product or material so that it does not enter the atmosphere under normal use, including any normal activity taking place after the end of life of the product, in a manner consistent with the rules established under Directive 2003/87/EC of the European Parliament and of the Council1a, such as CO2 mineralisation to form stable carbonate minerals in cementitious construction products, or it should be stored for at least several decades in a long-lasting product which is clearly traceable up to and including the end of life of the product, such as durable harvested wood products used in construction, for example as panels and sawn wood, in a manner consistent with other Union environmental objectives, as well as IPCC Guidelines as adopted by the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) or the Conference of the Parties serving as the Meeting of the Parties to the Paris Agreement and Regulation (EU) 2018/841. Those construction products characteristically store carbon for decades after having captured it during tree growth. Furthermore, at the end of their use as products, the carbon could be transferred to another more durable form of storage, for instance if used for BECCS. / 1a Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Uni…

Added:Recital 5: (5) Activities regarding carbon removal, carbon farming and carbon storage in products have different characteristics as regards the storage process, the storage medium and the expected duration of the storage, which can vary from decades to centuries for certain carbon farming activities or storage in certain products, to permanent storage in geological formations if the site for geological storage of CO2 is appropriately selected and managed. In order to ensure the integrity of the framework while supporting operators willing to make additional efforts to increase carbon sequestration or biogenic emission reductions in a sustainable way, the Union certification framework should clearly distinguish the different types of activities, their specificities and related environmental impacts. Therefore, this Regulation should clearly separate the definitions, the quality criteria and the rules on the use related to activities regarding carbon removals, carbon farming and carbon storage in products in the Union certification framework

Removed:Recital 5 d (new): (5d) The scope of carbon farming covered under the Union carbon removal certification framework should be consistent with the scope of Regulation (EU) 2018/841,as amended by Regulation (EU) 2023/839, and of the reporting under that Regulation in the national greenhouse gas inventories. Some of those carbon farming processes gradually result in carbon removals after a certain period, for example in the case of peatland rewetting. Degraded peatland emits carbon formerly stored in peat. Such carbon release can, through well-managed restoration and rewetting of the peatland, gradually be reduced and halted, and subsequently result again in carbon removal once the peatland has been fully restored. Furthermore, conserving and restoring peatlands also has a very large potential for prevention of biodiversity loss and enhancement of water quality according to the IPCC guidelines on peatland rewetting1a . / 1a IPCC: 2013 Supplement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories: Wetlands (2013).

Added:Recital 5 a (new): (5a) Under the Union certification framework, activities that, under normal circumstances and using appropriate management practices, ensure the permanent storage of atmospheric or biogenic carbon for several centuries through geological storage of CO2, such as bioenergy with carbon capture and storage and direct air carbon capture and storage, or through permanently bound carbon mineralisation, should be considered permanent carbon removals. Activities 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 or related to coastal management, that result in carbon sequestration, or activities that result in biogenic emission reductions, such as methane reductions from feed changes or manure management, or nitrous oxide reductions from fertiliser reductions or manure management, for a minimum period of at least five years, are considered carbon farming activities. Certain carbon farming activities, in particular peatland rewetting, can result in carbon sequestration once the peatland is fully restored, while reducing carbon emissions through well-managed restoration and rewetting in an initial phase. Certain other activities, such as those based on the use of biochar, can be categorised under different types of activities depending on the specific conditions under which the activities take place. In light of the uncertainties in the measuring and monitoring methodologies related to …

Removed:Recital 6: (6) This Regulation should set out the requirements under which carbon removals should be eligible for certification under the Union certification framework. To this end, carbon removals should be quantified in an accurate and robust way. The degree of conservatism in the quantification of carbon removals should be proportionate to the level of uncertainty in order to limit the risk of overestimating the quantity of CO2 removed from the atmosphere. Moreover, they should be generated only by carbon removal activities that generate a net carbon removal benefit, are additional, ensure permanent or long-term storage of carbon, and have at least a neutral impact and have a co-benefit on sustainability objectives. Furthermore, carbon removals should be subject to independent third-party auditing in order to ensure the credibility and reliability of the certification process, and should be publicly available through a Union registry in order to ensure that there is transparency concerning the certificates and underlying carbon removal units and that such certificates and carbon removal units are traceable. Mandatory Union carbon pricing rules established through Directive 2003/87/EC of the European Parliament and of the Council26 are in place which regulate the treatment of emissions from activities covered by that Directive. This Regulation should be without prejudice to Directive 2003/87/EC, except in relation to the certification of removals of emissions from sustainable biomass …

Added:Recital 5 b (new): (5b) The carbon removal certification framework should also provide the necessary flexibility to cater for regional, technical, structural and geophysical specificities, taking into account the variety of conditions in terms of production systems in the Member States and their regions.

Removed:Recital 7: (7) A carbon removal activity should result in a net carbon removal benefit showing that it delivers a positive climate impact. The net carbon removal benefit should be computed following two steps. First, operators should quantify the amount of additional carbon removals that a carbon removal activity has generated in comparison to a baseline. A standardised baseline reflecting the standard performance of comparable activities in similar social, economic, environmental and technological circumstances and geographical locations should be preferred because it ensures objectivity, minimises compliance and other administrative costs, and positively recognises the action of first movers who have already engaged in carbon removal activities. In the context of carbon farming, the use of available digital technologies, including electronic databases and geographic information systems, remote sensing, artificial intelligence and machine learning, and of electronic maps should be promoted to decrease the costs of establishing baselines and of monitoring carbon removal activities. However, where it is not possible to set such a standardised baseline, a project-specific baseline based on the operator’s individual performance may be used. In order to reflect the social, economic, environmental and technological developments and to encourage ambition over time in line with the Paris Agreement, baselines should be regularly reviewed by the Commission and updated, at least every ten years.

Added:Recital 6: (6) This Regulation should set out the requirements under which carbon removals, carbon farming or carbon storage in products should be eligible for certification under the Union certification framework. To this end, carbon removals, carbon farming sequestration, carbon farming emission reductions and carbon storage in products should comply with the criteria on issuance and use; be quantified in an accurate and robust way; and they should be generated only by activities that generate a net benefit, are additional, ensure permanent or long-term carbon farming sequestration and/or the reduction of greenhouse gas emissions, and comply with the monitoring and liability requirements, and have at least a neutral impact or co-benefit on sustainability objectives in accordance with the requirements set out in this Regulation. Furthermore, activities should be subject to independent third-party auditing in order to ensure the credibility and reliability of the certification process, and the information relating to the certificates and certification process should be publicly available through a Union registry. Mandatory Union carbon pricing rules established through Directive 2003/87/EC of the European Parliament and of the Council26 are in place which regulate the treatment of emissions from activities covered by that Directive. This Regulation should be without prejudice to Directive 2003/87/EC, except in relation to the certification of removals of emissions from sustainable bioma…

Removed:The 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.

Added:Recital 7: (7) An activity should result in a net benefit showing that it delivers a positive climate impact. The calculation of the net benefit should be differentiated for permanent carbon removals, carbon farming sequestration, carbon farming, carbon, nitrogen or methane emission reductions and carbon storage in products, in order to take into account their fundamentally different characteristics, and should be computed following two steps. First, operators should quantify, as applicable, the amount of additional carbon removals, in the case of carbon removal activities, the amount of additional carbon sequestration, in the case of carbon farming sequestration activities or carbon storage in product activities, or the amount of additional biogenic emission reductions, in the case of carbon farming emission reductions, that an activity has generated in comparison to a baseline. A standardised baseline should be representative of the performance of common current practices of comparable activities in similar social, economic, environmental and technological circumstances and geographical locations should be preferred because it ensures objectivity, minimises compliance and other administrative costs, and positively recognises the action of first movers who have already engaged in carbon removal activities. In order to ensure the climate integrity of the framework, in the case of permanent carbon removals the standardised baseline should be representative of the state-of-the-art of comp…

Change 6

Changed:Recital 8: (8) The second step for quantifying the net carbon removal benefit should consist of subtracting any increase in greenhouse gas emissions related to the implementationentire life cycle of the carbonimplementation removalof the activity. Relevant greenhouse gas emissions that should be taken into consideration include direct emissions, such as those resulting from the use of more fertilisers, chemicals, fuel or energy, or indirect emissions, such as those resulting from materials or land use change within- or outside the Union, with consequenttransportation, risksmaterial forinputs, fooddisplacement securityeffects due to displacement of agricultural production. Acompeting reductiondemand infor greenhouseenergy gasor emissionswaste resultingheat, fromor thedirect implementationand ofindirect theland carbonuse removalchange activitywith shouldconsequent notrisks befor takenfood intosecurity accountdue to quantify the net carbon removal benefit, but should be considered as a co-benefit towards the sustainability objectivedisplacement of climate change mitigation; by being reported on the certificates, decreasesagricultural inproduction, greenhouseand gasshould emissionscover (likeboth the other sustainability co-benefits) can increaseimpacts thewithin valueand ofoutside the certified carbon removals.Union.

Change 7

Removed:Many existing and upcoming carbon removal technologies deploy chemicals, whose climate impact should also be taken into account in the overall GHG impact of the removal activity.

Added:Recital 9: (9) An activity delivers a net benefit when, respectively, the carbon removals, the carbon sequestration or the emission reductions above the baseline outweigh any increase in greenhouse gas emissions due to the implementation of the activity. For instance, in the case of activities that deliver permanent carbon storage by injecting carbon underground, the amount of permanently stored carbon should outweigh the energy-related greenhouse gas emissions from the industrial process during capture, transport and storage as well as the displacement effects due to competing demand for energy or waste heat. In the case of carbon farming sequestration, the carbon captured and sequestered by an afforestation activity or the carbon kept in the ground by a peatland re-wetting activity should outweigh the emissions from the machinery used to carry out the activity or the indirect land use change emissions that can be caused by carbon leakage. In the case of carbon farming emission reductions, the carbon emissions reduced by a peatland re-wetting activity should outweigh the emissions from the machinery used to carry out the activity or the indirect land use change emissions that can be caused by carbon leakage.

Change 8

Changed:Recital 10: (10) Carbon removalsActivities should be quantified in a relevant, accurate, complete, consistentconsistent, comparable and comparabletransparent manner. Uncertainties in the quantification should be duly reported and accounted as part of the certification methodologies, in a manner that is conservative and isconservative, proportionate to the level of uncertainty, and in accordance with recognised statistical approaches and with the latest available scientific evidence, in order to limit the risk of overestimating the quantity of carbon dioxide removed from the atmosphere. Carbon removalssequestration and emission reductions generated by carbon farming should be quantified with a high level of accuracy to assure the highest quality and minimise uncertainties.uncertainties, based on the use of Tier 3 methodologies in accordance with the 2006 IPCC guidelines for National Greenhouse Gas inventories. Moreover, in order to incentivise synergies between Union climate and biodiversity objectives, enhanced monitoring of land needs to be required, thereby helping to protect and enhance the resilience of nature-based carbon removalssinks throughout the Union. The satellite and on-site monitoring and reporting of emissions and removals need to closely reflect those approaches, and make the best use of advanced technologies available under Union programmes, such as Copernicus, making full use of already existing tools, and ensure consistency with the national greenhouse gas inventories.

Change 9

Changed:Recital 11: (11) In order to ensure that the Union certification framework channels incentives toward carbon removalsactivities that go beyond the standard practice, carbon removal activities should be additional. Therefore, these activities should go beyond statutory requirements,requirements at the level of the individual operator, that is, operators should carry out activities that are not already imposed upon them by the applicable law. In the case of carbon farming, such statutory requirements include relevant statutory management requirements and good agricultural and environmental conditions standards established under Title III, Chapter I, Section 2 of Regulation (EU) 2021/2115 and relevant minimum requirements for the use of fertiliser and plant protection products, animal welfare, as well as other relevant statutory requirements established by Union and national law, applicable at the level of the operator. Moreover, activities should take place due to the incentive effect provided by the certification making the activity financially attractive. Such effect is present when the incentive created by the potential revenues, resulting from the certification, changes the behaviour of operators in such a way that they engage in the additional activity to achieve additional net benefits.

Change 10

Removed:It 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.

Added:Recital 12: (12) A standardised baseline should reflect the statutory and market conditions in which the activity takes place. If an activity is imposed upon operators by the applicable law, its performance will be reflected in the baseline. For this reason, an activity that generates net benefits in excess of such a baseline should be presumed to be additional to statutory requirements. Hence, the use of a standardised baseline should simplify the demonstration of regulatory additionality for operators. Therefore, it should reduce the administrative burden of the certification process, which is particularly important in the case of small-scale land managers.

Removed:Recital 12: (12) A highly representative standardised baseline should reflect the statutory and market conditions in which the carbon removal activity takes place. If a carbon removal activity is imposed upon operators by the applicable law, or it does not need any incentives to take place, its performance will be reflected in the baseline. For this reason, a carbon removal activity that generates carbon removals in excess of such a baseline should be presumed to be additional. Hence, the use of a standardised baseline should simplify the demonstration of additionality for operators. Therefore, it should reduce the administrative burden of the certification process, which is particularly important in the case of small-scale land managers.

Added:Recital 13: (13) Atmospheric and biogenic carbon that is captured and stored through an activity risks being released back into the atmosphere (e.g. reversal) due to natural causes, including extreme weather and force majeure events, or anthropogenic causes. Therefore, operators should take all relevant preventive measures to mitigate those risks and duly monitor that carbon continues to be stored over the monitoring period laid down for the relevant activity. The validity of the certificate should depend on the expected duration of the storage or biogenic emission reduction and the different risks of reversal associated with the given activity. Activities that store carbon in geological formations provide enough certainties on the very long-term duration of several centuries for the stored carbon and can be considered as providing permanent storage of carbon. Therefore, the monitoring period and requirements of the certified storage generated by permanent carbon removals should be consistent with the provisions set out in Articles 13, 17 and 18 of Directive 2009/31/EC. Carbon farming or carbon storage in products are more exposed to the risk of voluntary or involuntary release of carbon into the atmosphere. To account for this risk, the monitoring period of the certified sequestration or emission reduction generated by carbon farming should 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 m…

Removed:The 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.

Added:Recital 14: (14) In addition to measures taken to minimise the risk of carbon release into the atmosphere during the monitoring period, appropriate liability mechanisms should be introduced and a liable natural or legal person should be designated to be responsible for addressing cases of reversal. To avoid double regulation for permanent carbon removal activities, the liability mechanism should be consistent with the liability mechanism set out in Directive 2009/31/EC , while for carbon farming activities, the liability mechanism should 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. Such mechanisms could include e.g. discounting of carbon removal units, collective buffers or accounts of carbon removal units, a percentage of credits to be put in a pool managed by the certification scheme in the case of carbon farming activities, and up-front insurance mechanisms. In order to ensure that liability mechanisms continue to be fit for purpose, certification schemes should continuously monitor and ensure the availability and readiness of the liability mechanisms throughout the monitoring period of an activity.

Change 11

Changed:Recital 13: (13) Atmospheric and biogenic carbon that is captured and stored through14 a carbon(new): removal(14a) activityTo risksaccount beingfor releasedthe backrisk intoof thereversal atmosphereand (e.g.ensure reversal)the dueclimate tointegrity naturalof orthe anthropogenicframework, causes.the Therefore,certified operatorsunits should takebe allsuspended relevantin preventivethe measuresregistry tountil mitigatethe thosereversal riskshas andbeen dulyaddressed monitorthrough thatthe carbonliability continuesmechanism. toWhere bea storedreversal overhas thenot monitoringbeen periodaddressed laidthrough downthe forliability themechanism relevantwithin carbona removalreasonable activity.timeframe, Thethe validity of the certified carbon removalscertificate should depend on the expected duration of the storageexpire and the differentcorresponding risksunits ofshould reversalbe associatedcancelled withfrom the given carbon removal activity.registry Activitiesand thatthe storeoperator carbonor ingroup geologicalof formationsoperators orshould throughbe carbonsubject mineralisationto providea enoughcorrective certaintiespenalty onreflecting the very long-termcarbon durationcost of several centuries for the stored carbon and can beamount consideredof ascarbon providingreleased permanentto storagethe ofatmosphere. carbon.For Carboncarbon farming oractivities and carbon storage in products are more exposed toproducts, the riskvalidity of voluntary orthe involuntarycertified releaseunits ofshould carbonbe intosubject theto atmosphere.an Toexpiry accountdate forthat thiscorresponds risk,to the monitoring periodend of the certifiedrelevant carbonmonitoring removalsperiod. generatedThereafter, byor carbonin farmingthe andevent carbonthat storagethe inmonitoring productsis shoulddiscontinued coverbefore the entire durationend of the activity or lifetimemonitoring ofperiod, the product, includingnet thebenefit endgenerated ofby the activity orshould endbe ofassumed theto lifebe ofreleased to the product,atmosphere and those certifiedthe carboncorresponding removalsunits should be subject to an expiry date matchingcancelled within the endregistry, ofunless the relevant monitoring period. Thereafter,economic oroperator inproves the eventmaintenance thatof the monitoring is discontinuedcarbon beforestorage thethrough enduninterrupted ofmonitoring t…activities.

Change 12

Removed:The IPCC and broader scientific research consider CO2 to be permanently bound through carbon mineralisation to form stable carbonate minerals either through reaction with activated minerals in natural rocks or with activated minerals in industrial wastes.

Added:Recital 15: (15) Carbon removal, carbon farming and carbon storage in product activities have a strong potential to deliver win-win solutions for sustainability, even if trade-offs cannot be excluded. Therefore, it is appropriate to establish minimum sustainability requirements to ensure that carbon removal activities have at least a neutral impact or generate co-benefits for the sustainability objectives of climate change mitigation and adaptation, the protection and restoration of biodiversity and ecosystems, the sustainable use and protection of water and marine resources, the transition to a circular economy, and pollution prevention and control, to ensure that carbon farming activities generate co-benefits for at least the sustainability objective of protection and restoration of biodiversity and ecosystems and have at least a neutral impact on the sustainability objectives of climate change mitigation and adaptation, the sustainable use and protection or improvement of water quality and marine resources, the transition to a circular economy, pollution prevention and control and prevention of soil degradation, soil restoration, improvement of soil fertility and of nutrient management and soil biota, and to ensure that carbon storage in products activities generate co-benefits for at least one, and have at least a neutral impact on the rest, of the sustainability objectives of climate change mitigation and adaptation, the protection and restoration of biodiversity and ecosystems, the…

Removed:Recital 14: (14) In addition to measures taken to minimise the risk of carbon release into the atmosphere during the monitoring period, appropriate liability mechanisms should be introduced to address cases of reversal and there should be a liable party at any moment of time. Such mechanisms may include e.g. discounting of carbon removal units, collective buffers or accounts of carbon removal units, and up-front insurance mechanisms. Since liability mechanisms in respect of geological storage and CO2 leakage, and relevant corrective measures have already been laid down by Directive 2003/87/EC and Directive 2009/31/EC of the European Parliament and of the Council27, those liability mechanisms and corrective measures should apply to avoid double regulation.

Added:Recital 15 a (new): (15a) Furthermore, carbon farming activities should not negatively affect the Union’s food security and should not lead to land grabbing or land speculation. Such activities should respect the rights of local communities and indigenous people that they affect, 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.

Removed:Recital 15: (15) Carbon removal activities, in particular carbon farming, have a strong potential to deliver win-win solutions for sustainability, even if trade-offs cannot be excluded. Therefore, it is appropriate to establish minimum sustainability requirements to ensure that carbon removal activities have at least a neutral impact or generate co-benefits for the sustainability objectives of climate change mitigation and adaptation, the protection and restoration of biodiversity and ecosystems, the sustainable use and protection of water and marine resources, the transition to a circular economy, and pollution prevention and control, taking into account the impacts in the Union and in third countries. Furthermore, carbon removal activities should not have a negative impact on or displace food production and food supply in the Union or in third countries. Those sustainability requirements should, as appropriate, and taking into consideration local conditions, respect the ‘do no significant harm’ principle and build on the technical screening criteria concerning forestry activities and underground permanent geological storage of CO2, laid down in Commission Delegated Regulation (EU) 2021/213928, and on the sustainability criteria for forest and agriculture biomass raw material laid down in Article 29 of Directive (EU) 2018/2001 of the European Parliament and of the Council29. Practices, such as forest monocultures, that produce harmful effects for biodiversity should not be eligible for …

Added:Recital 16: (16) Farming practices that remove CO2 from the atmosphere contribute to the climate neutrality objective and should be rewarded, either via the Common Agricultural Policy (CAP) or other public or private initiatives. The Commission should, after consulting the Platform and within 6 months of the entry into force of this Regulation, publish guidance to inform potential carbon farming operators or groups of operators about those carbon farming activities that are to be prioritised in the preparation of the certification methodologies. / (deleted)

Change 13

Changed:Recital 17: (17) Operators or groups of operators may report co-benefits that contribute to the sustainability objectives beyond the minimum sustainability requirements.requirements and certificates should clearly indicate the positive co-benefits generated by an activity, where applicable. To this end, their reporting should comply with the certification methodologies tailored to the different carbon removal activities, developed by the Commission. Certification methodologies should, as much as possible, incentivise the generation of co-benefits for biodiversity going beyond the minimum sustainability requirements.requirements Theand, incentivisationin ofthe co-benefitscase isof particularlycarbon importantfarming foractivities, biodiversityprovide andfor ecosystemthe protectionpossibility andof restorationgenerating througha carbon farming activities.premium for such co-benefits. These additional co-benefits will give more economic value to the certified carbon removalsactivities and will result in higher revenues for the operators. Therefore,In the carbonlight removalof certificatethese andconsiderations, the Union registryCommission should clearly indicateprioritise whetherthe adevelopment carbonof removaltailored activitycertification hasmethodologies aon positivethose ortypes aof neutralactivities impact.that Inare the lightmost ofmature, thesehave considerations,the itpotential isfor alsogenerating appropriatethe forlargest net benefits and the Commissionpotential to prioritiseprovide the developmentlargest ofco-benefits. tailoredIn certificationthe methodologiescase onof carbon farming activities, such prioritisation should in addition take into account whether the activities thatcontribute provideto significantsustainable co-benefitsmanagement forof biodiversity.agricultural land and forests.

Change 14

Removed:Recital 20 a (new): (20a) A certified carbon removal unit should not be double counted at any given moment in time. Upon expiry of a carbon removal certificate, the corresponding carbon removal units should either be invalidated and deducted, or compensated through equivalent carbon removal units. In order to ensure there is transparency and traceability, all current and past holders and purposes for which a carbon removal unit is held should be registered in the Union registry.