Mitigating climate change is one of the greatest challenges of our time, and European Union (EU) is committed to reducing greenhouse gas emissions and achieving carbon neutrality by 2050. As part of these efforts, the EU has created a Carbon Removal Certification Framework (CRCF) to promote and support the capture and storage of carbon dioxide by natural methods.
The CRCF is an important step towards a more sustainable and climate-neutral future. It will help to promote innovative carbon sequestration methods and support their wider uptake. Although there are challenges, the certification framework provides a clear and reliable way to verify and encourage carbon sequestration, which can significantly mitigate climate change.
Objectives and Legislative Process of the Carbon Removal Certification Framework
The CRCF aims to provide a standardised and reliable way to assess and certify a company's carbon project. This framework will enable carbon offset implementers to verify the impact of their project and gain recognition and funding for their efforts.
According to our information and our understanding, there is a broad consensus on this regulation among the relevant actors (parliament, commission, council, i.e. national governments). The wide majority in parliament on the 10th of April will allow the matter to proceed to legislation without a new vote in parliament, barring any surprises. This will require confirmation by the council and, technically, a subsequent publication officially. We expect the process to be completed in good time this year. However, final certainty will only be assured once a decision has been taken.
The certification framework will focus in particular on agriculture, forestry, and other land-use sectors where organic carbon sequestration methods are important. Preparatory work on the practical application of the regulation will proceed in June and October, in line with the current timetable, and we will do our part to contribute to this.
The certification process consists of several steps to ensure the quality and reliability of projects. The first step is to register the carbon sequestration project in the EU carbon register, which defines the project's objectives, carbon sequestration methodology, and estimated carbon sequestration results. Progress will then be continuously monitored and results will be reported regularly. This step ensures that carbon sequestration takes place in a planned and reliable manner.
The project results are checked and verified by external experts to ensure their accuracy and reliability. Once a project is deemed successful, it is awarded a certificate recognising the impact and value of carbon sequestration.
In terms of the technical entry into force of the regulation, we consider the most likely date of entry into force to be 2024, with a phased practical application between 2025 and 2028, with the common registry as the final phase of entry into force and the possibility of certification under the model opening up to the first practices in 2025, expanding in 2026.
The way the EU deals with this type of matter is based on a process with a maximum of three votes in the parliament. The need for the number of hearings is based on the path of the case and the rules, as well as any changes along the way. It is therefore not possible to know for certain the path and time of a case until it has been dealt with to its conclusion. Even if, contrary to expectations and due to changes, the case requires a new parliamentary procedure after the European elections, we see a likely passage of the legislative process even in that situation.
Importance and Impact of Carbon Sequestration Regulation
Regulating the carbon sequestration market is a necessary and considered compromise that we believe is necessary. It represents a significant step forward for market-based carbon action in the EU while preserving the principles of a voluntary market. Regulating carbon sequestration will be an important factor in shaping the market by removing the undesirable actors and creating space for the market to grow broadly. This, in turn, will allow large climate impacts to be achieved cost-effectively through price signals.
The certification framework will promote effective and reliable carbon sequestration practices that help reduce atmospheric carbon dioxide levels. Carbon sequestration projects will be eligible for funding and support, which will make them more economically viable. Many carbon sequestration practices, such as forestry and land improvement, also contribute to biodiversity.
Do you want to contribute to solving the challenges of climate change through concrete actions such as carbon reduction and carbon offsetting?
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