Legal provisions of COM(2022)672 - Union certification framework for carbon removals - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2022)672 - Union certification framework for carbon removals. |
|---|---|
| document | COM(2022)672  |
| date | November 27, 2024 |
CHAPTER 1
GENERAL PROVISIONS
Article 1
Subject matter and scope
1. The objective of this Regulation is to facilitate and encourage the deployment of permanent carbon removals, carbon farming and carbon storage in products by operators or groups of operators, as a complement to sustained emission reductions across all sectors to meet the objectives and targets laid down in Regulation (EU) 2021/1119. To that end, this Regulation establishes a voluntary Union framework for the certification of carbon removals and soil emission reductions by laying down:
(a) quality criteria for activities that take place in the Union;
(b) rules for the verification and certification of carbon removals and soil emission reductions generated by activities;
(c) rules for the functioning and recognition by the Commission of certification schemes;
(d) rules on the issuance and use of certified units.
2. This Regulation aims to support the achievement of the Union objectives under the Paris Agreement, in particular the collective achievement, at the latest by 2050, of the climate-neutrality objective laid down in Regulation (EU) 2021/1119. Accordingly, all carbon removals and soil emission reductions generated under this Regulation shall contribute to the achievement of the Union’s NDC and its climate objectives and not to third-party-NDCs or international compliance schemes.
3. This Regulation does not apply to emissions falling within the scope of Directive 2003/87/EC, with the exception of the capture and storage of CO2 emissions from biofuels, bioliquids and biomass fuels that meet the sustainability and greenhouse gas emissions saving criteria established under Article 29 of Directive (EU) 2018/2001, with any necessary adjustments for application under Directive 2003/87/EC, as set out in the implementing acts referred to in Article 14 of Directive 2003/87/EC, in accordance with Annex IV to Directive 2003/87/EC.
Article 2
Definitions
For the purposes of this Regulation, the following definitions apply:
(1) ‘carbon removal’ means the anthropogenic removal of carbon from the atmosphere and its durable storage in geological, terrestrial or ocean reservoirs, or in long-lasting products;
(2) ‘soil emission reduction’ means the reduction of net greenhouse gas emissions from biogenic carbon pools as listed in Section B, points (e) and (f), of Annex I to Regulation (EU) 2018/841 or the reduction of greenhouse gas emissions from the IPCC source category of agriculture, subcategory of 3.D agricultural soils, as determined pursuant to Regulation (EU) 2018/1999 and the implementing acts adopted pursuant to it, where the relevant activity, overall, reduces the emission of carbon from soil carbon pools or increases carbon removals in biogenic carbon pools;
(3) ‘activity’ means one or more practices or processes carried out by an operator, or a group of operators, resulting in a permanent carbon removal, a temporary carbon removal through carbon farming or through carbon storage in products, or soil emission reductions through carbon farming where such carbon farming, overall, reduces the emissions of carbon from soil carbon pools or increases carbon removals in biogenic carbon pools;
(4) ‘biogenic carbon pool’ means living biomass, litter, deadwood, dead organic matter, mineral soils and organic soils as listed in Section B, points (a) to (f), of Annex I to Regulation (EU) 2018/841;
(5) ‘operator’ means any natural or legal person or public entity that operates or controls an activity, or to whom or to which decisive economic power over the technical functioning of the activity has been delegated; in the case of a carbon farming activity, ‘operator’ means a farmer as defined in Article 3, point (1), of Regulation (EU) 2021/2115, any other manager of an activity in a terrestrial or coastal environment, a forest owner or manager as defined by national law, or a competent public entity;
(6) ‘group of operators’ means a legal entity that represents at least two operators and is responsible for ensuring that those operators comply with this Regulation;
(7) ‘activity period’ means a period during which the activity generates a net carbon removal benefit or a net soil emission reduction benefit, and which is determined in the applicable certification methodology;
(8) ‘monitoring period’ means a period during which the soil emission reduction or storage of carbon is monitored by an operator or a group of operators, which covers at least the activity period, and which is determined in the applicable certification methodology;
(9) ‘permanent carbon removal’ means any practice or process that, under normal circumstances and using appropriate management practices, captures and stores atmospheric or biogenic carbon for several centuries, including permanently chemically bound carbon in products, and which is not combined with enhanced hydrocarbon recovery;
(10) ‘carbon farming’ means any practice or process carried out over an activity period of at least five years, related to the management of a terrestrial or coastal environment and resulting in the capture and temporary storage of atmospheric or biogenic carbon in biogenic carbon pools, or in the reduction of soil emissions;
(11) ‘carbon storage in products’ means any practice or process that captures and stores atmospheric or biogenic carbon for at least 35 years in long-lasting products, allows on-site monitoring of the carbon stored and is certified throughout the monitoring period;
(12) ‘permanently chemically bound carbon in products’ means carbon chemically stored within a product with the result that it does not enter the atmosphere under normal use of the product, including any normal activity taking place after the end of life of the product, in accordance with Article 12(3b) of Directive 2003/87/EC;
(13) ‘geological storage of CO2’ means geological storage of CO2 as defined in Article 3, point 1, of Directive 2009/31/EC;
(14) ‘certification body’ means an accredited or recognised independent conformity assessment body that has concluded an agreement with a certification scheme to carry out certification audits and issue certificates of compliance;
(15) ‘certification scheme’ means an organisation that certifies the compliance of activities and operators with the quality criteria and certification rules set out in this Regulation;
(16) ‘certification audit’ means an audit carried out by a certification body;
(17) ‘re-certification audit’ means an audit carried out in the process of renewing a certificate of compliance issued by a certification body;
(18) ‘certificate of compliance’ means a conformity statement issued by a certification body certifying that an activity complies with this Regulation;
(19) ‘permanent carbon removal unit’ means one metric tonne of CO2 equivalent of certified permanent net carbon removal benefit generated by a permanent carbon removal activity and registered by a certification scheme in its certification registry or, as applicable, in the Union registry provided for in Article 12;
(20) ‘soil emission reduction unit’ means one metric tonne of CO2 equivalent of certified net soil emission reduction benefit generated by a carbon farming activity and registered by a certification scheme in its certification registry or, as applicable, in the Union registry provided for in Article 12;
(21) ‘reversal’ means, in the case of geological storage of CO2, leakage as defined in Article 3, point 5, of Directive 2009/31/EC and, for other activities, the voluntary or involuntary release back into the atmosphere of carbon captured and stored by an activity;
(22) ‘carbon farming sequestration unit’ means one metric tonne of CO2 equivalent of certified temporary net carbon removal benefit generated by a carbon farming activity and registered by a certification scheme in its certification registry or, as applicable, in the Union registry provided for in Article 12;
(23) ‘carbon storage in product unit’ means one metric tonne of CO2 equivalent of certified temporary net carbon removal benefit generated by a carbon storage in product activity and registered by a certification scheme in its certification registry or, as applicable, in the Union registry provided for in Article 12.
Article 3
Eligibility for certification
Carbon removals and soil emission reductions shall be eligible for certification under this Regulation where they meet both of the following conditions:
(a) they are generated by an activity that complies with the quality criteria set out in Articles 4 to 7;
(b) they are independently verified in accordance with Article 9.
CHAPTER 2
QUALITY CRITERIA
Article 4
Quantification
1. A permanent carbon removal activity shall provide a permanent net carbon removal benefit, which shall be quantified using the following formula:
permanent net carbon removal benefit = CR. - CR , - GHG ., , > 0,
r baseline total associated ’
where:
(a) CR is the amount of carbon removals under the baseline;
baseline
(b) CRtotal is the total amount of carbon removals of the activity;
(c) GHG ., , is the increase in direct and indirect greenhouse gas emissions over the entire lifecycle of the activity which
associated
are attributable to its implementation, including indirect land use change, calculated, where applicable, in accordance with the protocols set forth in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories and any further refinement to these 2006 IPCC Guidelines.
2. A carbon farming activity shall provide a temporary net carbon removal benefit or a net soil emission reduction benefit, which shall be quantified using the following formulas:
(a) temporary net carbon removal benefit = CR. - CR , - GHG ., , > 0,
' ' r / baseline total associated ’
where:
(i) CR is the amount of carbon removals under the baseline;
baseline
(ii) CRtotal is the total amount of carbon removals of the activity;
(iii) GHG is the increase in direct and indirect greenhouse gas emissions over the entire lifecycle of the activity
associated
which are attributable to its implementation, including indirect land use change, calculated, where applicable, in accordance with the protocols set forth in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories and any further refinement to these 2006 IPCC Guidelines;
(b) net soil emission reduction benefit = LSE .. - LSE , + ASE .. - ASE , - GHG ., , > 0,
baseline total baseline total associated
where:
(i) LSE .. is the amount of LULUCF soil emissions under the baseline;
baseline
(ii) LSEtotal is the total amount of LULUCF soil emissions of the activity;
(iii) ASE is the amount of agricultural soil emissions under the baseline;
baseline
(iv) ASEtotal is the total amount of agricultural soil emissions of the activity;
(v) GHG is the increase in direct and indirect greenhouse gas emissions over the entire lifecycle of the activity
associated
which are attributable to its implementation, including indirect land use change, calculated, where applicable, in accordance with the protocols set forth in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories and any further refinement to these 2006 IPCC Guidelines.
The scope of the quantities referred to in CRbaseline and CRtotal corresponds to the net greenhouse gas removals included in the scope of Regulation (EU) 2018/841.
The scope of the quantities referred to in LSE and LSE corresponds to the net greenhouse gas emissions from baseline total
biogenic carbon pools as listed in Section B, points (e) and (f), of Annex I to Regulation (EU) 2018/841.
The scope of the quantities referred to in ASEbaseline and ASEtotal corresponds to the emissions from the IPCC source category of agriculture, subcategory of 3.D agricultural soils.
3. The applicable certification methodologies shall require a breakdown by greenhouse gas of all quantities referred to in paragraph 2.
4. If soil emissions increase as a consequence of an activity that results in a temporary carbon removal through carbon farming, they shall be quantified and accounted for in the net carbon removal benefit. In particular, emissions from biogenic carbon pools as listed in Section B, points (e) and (f), of Annex I to Regulation (EU) 2018/841 shall be quantified and reported as part of CR p and emissions from the IPCC source category of agriculture, subcategory of 3.D agricultural soils, shall be quantified and reported as GHG ., ,.
If soil emissions decrease as a consequence of an activity that results in a temporary carbon removal through carbon farming, they shall be quantified, reported and accounted for as a net soil emission reduction benefit.
Where an activity results in both a temporary net carbon removal benefit and a net soil emission reduction benefit, the relevant methodology shall specify the allocation rules for the associated direct and indirect greenhouse gas emissions which are attributable to that activity.
5. A carbon storage in product activity shall provide a temporary net carbon removal benefit, which shall be quantified using the following formula:
temporary net carbon removal benefit = CR, - CR , - GHG ., , > 0,
r / baseline total associated ’
where:
(a) CR,, is the amount of carbon removals under the baseline;
baseline
(b) CRtotal is the total amount of carbon removals of the activity;
(c) GHG is the increase in direct and indirect greenhouse gas emissions over the entire lifecycle of the activity which
associated
are attributable to its implementation, including indirect land use change, calculated, where applicable, in accordance with the protocols set forth in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories and any further refinement to these 2006 IPCC Guidelines.
6. Quantities referred to in paragraphs 1 to 5 shall be attributed a negative sign (-) if they are net greenhouse gas removals and a positive sign (+) if they are net greenhouse gas emissions; they shall be expressed in tonnes of CO2 equivalent.
7. Permanent carbon removals, temporary carbon removals through carbon farming and carbon storage in products, soil emission reductions and associated greenhouse gas emissions shall be quantified in a relevant, conservative, accurate, complete, consistent, transparent and comparable manner, in accordance with the latest available scientific evidence. The monitoring shall be based on an appropriate combination of on-site measurements with remote sensing or modelling in accordance with the rules set out in the applicable certification methodologies.
8. The baseline referred to in paragraphs 1, 2 and 5 shall be highly representative of the standard performance of comparable practices and processes in similar social, economic, environmental, technological and regulatory circumstances and take into account the geographical context, including local pedoclimatic and regulatory conditions (‘standardised baseline’).
9. The standardised baseline shall be established by the Commission in the applicable certification methodologies set out in the delegated acts adopted pursuant to Article 8.
The Commission shall review at least every five years and update, where appropriate, the standardised baseline in light of evolving regulatory circumstances and of the latest available scientific evidence. The updated standardised baseline shall apply only to an activity for which the activity period starts after the entry into force of the applicable certification methodology.
10. By way of derogation from paragraph 8, where duly justified in the applicable certification methodology, including due to the lack of data or the absence of sufficient comparable activities, an operator shall use a baseline that corresponds to the individual performance of a specific activity (‘activity-specific baseline’).
11. The activity-specific baselines shall be periodically updated, at the beginning of each activity period, unless otherwise stated in the applicable certification methodologies set out in the delegated acts adopted pursuant to Article 8.
12. The quantification of permanent carbon removals, temporary carbon removals through carbon farming and carbon storage in products, and soil emission reductions shall account for uncertainties in a conservative manner and in accordance with recognised statistical approaches. Uncertainties in the quantification of carbon removals and soil emission reductions shall be duly reported.
13. To support the quantification of temporary carbon removals and soil emission reductions generated by a carbon farming activity, the operator or group of operators shall, where feasible, gather data on carbon removals 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 the refinements to these 2006 IPCC Guidelines, 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.
Article 5
Additionality
1. Any activity shall be additional. To that end, it shall meet both of the following criteria:
(a) it goes beyond Union and national statutory requirements at the level of an individual operator;
(b) the incentive effect of the certification under this Regulation is needed for the activity to become financially viable.
2. Where a standardised baseline is used, additionality as referred to in paragraph 1 shall be considered to be complied with.
Where an activity-specific baseline is used, additionality as referred to in paragraph 1 of this Article shall be demonstrated through specific additionality tests in accordance with the applicable certification methodologies set out in the delegated acts adopted pursuant to Article 8.
Article 6
Storage, monitoring and liability
1. An operator or group of operators shall demonstrate that an activity stores carbon permanently or is aimed at storing carbon over the long-term.
2. For the purposes of paragraph 1, an operator or group of operators shall be:
(a) subject to monitoring rules and rules on the mitigation of any identified risks of reversal occurring during the monitoring period;
(b) liable to address any reversal of the carbon captured and stored by an activity which occurs during the monitoring period for that activity through appropriate liability mechanisms in accordance with the applicable certification methodologies set out in the delegated acts adopted pursuant to Article 8.
3. The monitoring rules referred to in paragraph 2, point (a), shall:
(a) for permanent carbon removals, be consistent with the rules set out in Articles 13 to 16 of Directive 2009/31/EC;
(b) for permanently chemically bound carbon in products, be consistent with the rules adopted pursuant to Article 12(3b) of Directive 2003/87/EC;
(c) for carbon farming and carbon storage in products, be set out and duly justified in accordance with the rules laid down in the applicable certification methodologies set out in the delegated acts adopted pursuant to Article 8.
4. The liability mechanisms referred to in paragraph 2, point (b), shall:
(a) for permanent carbon removals, be consistent with the rules set out in Articles 17 and 18 of Directive 2009/31/EC;
(b) for permanently chemically bound carbon in products, be consistent with the rules adopted pursuant to Article 12(3b) of Directive 2003/87/EC;
(c) for carbon farming and carbon storage in products, be set out and duly justified in the applicable certification methodologies set out in the delegated acts adopted pursuant to Article 8 and may include collective buffers or up-front insurance mechanisms.
5. The carbon removed and subsequently stored by a carbon removal activity shall be considered released into the atmosphere at the end of the monitoring period, unless that monitoring period is prolonged through a new certification of the activity or the carbon is stored permanently pursuant to paragraph 3, points (a) and (b), and paragraph 4, points (a) and
(b).
6. Soil emission reduction activities shall be subject to appropriate monitoring rules and liability mechanisms as set out in the delegated acts adopted pursuant to Article 8.
Article 7
Sustainability
1. An activity shall do no significant harm to the environment and may generate co-benefits for one or more of the following sustainability objectives:
(a) climate change mitigation beyond the net carbon removal benefit and net soil emission reduction benefit referred to in Article 4(1) and (2);
(b) climate change adaptation;
(c) the sustainable use and protection of water and marine resources;
(d) transition to a circular economy, including the efficient use of sustainably sourced bio-based materials;
(e) pollution prevention and control;
(f) protection and restoration of biodiversity and ecosystems, including soil health as well as avoidance of land degradation.
2. A carbon farming activity shall at least generate co-benefits for the sustainability objective referred to in paragraph 1, point (f).
3. For the purposes of paragraph 1 of this Article, an activity shall comply with the minimum sustainability requirements laid down in the applicable certification methodologies set out in the delegated acts adopted pursuant to Article 8.
The minimum sustainability requirements shall:
(a) take into account the impact both within and outside the Union and local conditions;
(b) where appropriate, be consistent with the technical screening criteria for the ‘do no significant harm’ principle;
(c) promote the sustainability of forest and agriculture biomass raw material in accordance with the sustainability and greenhouse gas emissions saving criteria for biofuels, bioliquids and biomass fuels laid down in Article 29 of Directive (EU) 2018/2001.
4. Where an operator or group of operators reports co-benefits that contribute to the sustainability objectives referred to in paragraph 1 of this Article beyond the minimum sustainability requirements referred to in paragraph 3 of this Article, that operator or group of operators shall comply with the applicable certification methodologies set out in the delegated acts adopted pursuant to Article 8. Those certification methodologies shall include elements to incentivise as much as possible the generation of co-benefits going beyond the minimum sustainability requirements, in particular for the objective referred to in paragraph 1, point (f), of this Article.
Article 8
Certification methodologies
1. An operator or a group of operators shall use the applicable certification methodology to comply with the quality criteria laid down in Articles 4 to 7 (‘certification methodology’).
2. The Commission shall adopt delegated acts in accordance with Article 16 to supplement this Regulation by establishing certification methodologies, which shall specify, for each activity, the elements set out in Annex I.
The Commission shall prioritise the development of certification methodologies for those activities that are the most mature, that have the potential to provide the largest co-benefits or for which Union law relevant for the development of those methodologies has already been adopted.
In the case of carbon farming activities, as part of its prioritisation the Commission shall take into account whether the activities contribute to the sustainable management of agricultural land, forests and the marine environment.
In the case of carbon storage in products, the Commission shall prioritise certification methodologies for wood-based and bio-based construction products.
3. Delegated acts adopted pursuant to paragraph 2 shall make a distinction between activities related to permanent carbon removal, carbon farming and carbon storage in products and further differentiate the activities on the basis of their characteristics.
The certification methodologies shall:
(a) ensure the robustness and transparency of carbon removals and soil emission reductions;
(b) promote the protection and restoration of biodiversity and ecosystems;
(c) contribute to ensuring the Union’s food security and avoiding land speculation;
(d) take into account the competitiveness of farmers and forest owners and managers in the Union in a sustainable manner, in particular for small-scale operators;
(e) promote the sustainability of biomass in accordance with the sustainability and greenhouse gas emissions saving criteria for biofuels, bioliquids and biomass fuels laid down in Article 29 of Directive (EU) 2018/2001;
(f) ensure the consistency of the application of the principle of the cascading use of biomass as per national authorities in accordance with Article 3(3) of Directive (EU) 2018/2001;
(g) ensure the avoidance of unsustainable demand for biomass raw material;
(h) minimise the administrative and financial burden on operators, in particular on small-scale operators, and keep the certification process as simple as possible, and easy to use;
(i) ensure that cases of reversal are addressed through appropriate liability mechanisms such as collective buffers or up-front insurance mechanisms and, as a last resort, direct cancellation of units.
4. When preparing the delegated acts referred to in paragraph 2, the Commission shall take into account:
(a) relevant Union and national law;
(b) relevant Union, national and international certification methodologies and standards; and
(c) best available scientific evidence.
CHAPTER 3
CERTIFICATION
Article 9
Certification of compliance
1. To apply for 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 group of operators shall submit to a certification body an activity plan that includes evidence of compliance with Articles 4 to 7 and the expected net carbon removal benefit or the expected net soil emission reduction benefit generated by the activity, and a monitoring plan.
Groups of operators shall also specify how advisory services are provided, in particular to small-scale carbon farming operators.
For carbon farming activities, Member States may provide advice to farmers in the framework of the farm advisory services referred to in Article 15 of Regulation (EU) 2021/2115.
In order to promote the interoperability of relevant databases on carbon farming, where applicable, Member States may include, in the identification system for agricultural parcels referred to in Article 68 of Regulation (EU) 2021/2116, key information listed in Annex II to this Regulation, including management practices related to the carbon farming activity, the start date and end date of the activity, the unique number or code of the certificate of compliance, the name of the certification body and the name of the certification scheme.
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 of this Article is accurate and reliable, and to confirm compliance of the activity with Articles 4 to 7.
When, as a result of that certification audit, the compliance of the information submitted in accordance with paragraph 1 of this Article has been verified, the certification body shall issue a certification audit report that includes a summary, and shall issue a certificate of compliance that contains, as a minimum, the information set out in Annex II.
The certification scheme shall review the certification audit report and the certificate of compliance, and make the certification audit report, in full or, where necessary to preserve the confidentiality of commercially sensitive information, in a summarised form, and the certificate of compliance publicly available in its certification registry or, once established, in the Union registry provided for in Article 12 (the ‘Union registry’).
3. At least every five years, or more frequently where so specified in the applicable certification methodology based on the characteristics of the relevant activity, the certification body shall carry out re-certification audits to reconfirm compliance of the activity with Articles 4 to 7 and verify the net carbon removal benefit or the net soil emission reduction benefit generated by the activity. As a result of that re-certification audit, the certification body shall issue a re-certification audit report that includes a summary, and, where appropriate, shall issue an updated certificate of compliance.
The certification scheme shall review the re-certification audit report and the updated certificate of compliance, and make the re-certification audit report, in full or, where necessary to preserve the confidentiality of commercially sensitive information, in a summarised form, and the updated certificate of compliance publicly available in its certification registry or, once established, in the Union registry.
The certification registry of the certification scheme or, once established, the Union registry shall issue certified units based on the updated certificate of compliance resulting from the re-certification audit.
4. The operator or group of operators shall support the certification body during the certification audit and re-certification audit, in particular by giving access to the premises of the activity and providing any data and documentation required by that certification body.
5. The Commission shall adopt implementing acts to set out the structure, format and technical details of the activity plan and of the monitoring plan referred to in paragraph 1 of this Article, and of the certification audit and re-certification audit reports referred to in paragraphs 2 and 3 of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17.
Article 10
Certification bodies
1. Certification bodies appointed by certification schemes shall be accredited by a national accreditation body pursuant to Regulation (EC) No 765/2008 or be recognised by a national competent authority as being competent to cover the scope of this Regulation or the specific scope of the certification scheme.
2. Certification bodies shall:
(a) be competent to carry out the certification audit and re-certification audit;
(b) be legally and financially independent of an operator or of a group of operators; and
(c) carry out in the public interest the activities required under this Regulation.
3. For the purpose of paragraph 2, point (b), certification bodies or any part thereof shall not: (a) be an operator or a group of operators, the owner of an operator or of a group of operators, or be owned by them;
(b) have relations with an operator or with a group of operators that could affect their independence and impartiality.
4. Member States shall supervise the operation of certification bodies.
Certification bodies shall submit, upon request by the national competent authorities, all relevant information necessary to supervise their operation, including the date, time and location of the certification audit and re-certification audit.
Where Member States find issues of non-conformity, they shall inform the certification body and the relevant certification scheme thereof without delay.
The information on issues of non-conformity shall be published in the certification registry or, once established, in the Union registry.
CHAPTER 4 CERTIFICATION SCHEMES
Article 11
Operation of certification schemes
1. In order to demonstrate compliance with this Regulation, an operator or a group of operators shall participate in a certification scheme recognised by the Commission pursuant to Article 13.
2. Certification schemes shall operate in an independent manner 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, and development and management of certification registries.
Certification schemes shall set transparent fees and make information about those fees easily accessible to operators, including by publishing them on their websites.
Certification schemes shall put in place easily accessible complaint and appeal procedures. Information about those procedures shall be made publicly available in the certification registry or, once established, in the Union registry.
3. Certification schemes shall verify whether the information and data submitted by an operator or a group of operators for the certification of compliance pursuant to Article 9 were subject to independent auditing and whether the certification of compliance, including the re-certification audit reports, was carried out in an accurate, reliable and cost-effective manner.
4. Certification schemes shall at least annually publish in their certification registries or, once established, in the Union registry a list of the appointed certification bodies, stating for each certification body by which national accreditation body it was accredited or by which national competent authority it was recognised and which national competent authority is monitoring it.
5. The Commission shall adopt implementing acts setting out the structure, format, technical details and process required for the purposes of paragraphs 2, 3 and 4 of this Article which are to apply to all certification schemes recognised by the Commission. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17.
Article 12
Union registry for permanent carbon removals, carbon farming and carbon storage in products, and certification registries
1. The Commission shall establish by 27 December 2028 and thereafter duly maintain a Union registry for permanent carbon removals, carbon farming and carbon storage in products, to make publicly available the information related to the certification process in an accessible way, containing, as a minimum, the information set out in Annex III.
When establishing the Union registry, the Commission shall take into account the reports referred to in Article 30(5), point
(a), of Directive 2003/87/EC and Article 17(3) of Regulation (EU) 2018/841.
The Union registry shall use automated systems, including electronic templates, to make publicly accessible in a secure way the information related to the certification process, including the certificates of compliance and updated certificates of compliance, to enable the tracing of the quantity of certified units and avoid double counting.
The Union registry shall be financed by annual fixed fees payable by users. Those fees shall be proportionate to the use of the Union registry and sufficient to contribute to the coverage of the establishment costs and annual operating costs of the Union registry, such as those for staff or IT tools.
Resources from such fees shall constitute external assigned revenue for the purpose of Article 21(5) of Regulation (EU, Euratom) 2018/1046. That revenue shall, in particular, cover the costs of IT tools, services and security, including the operation and licensing systems, and the costs of staff working on the management of the Union registry.
2. The Commission shall adopt delegated acts in accordance with Article 16 to supplement this Article by laying down the necessary requirements concerning the Union registry, including rules to ensure sufficient oversight of the trading of certified units, and the factors to be considered for determining the level of fees referred to in paragraph 1 of this Article and their recovery.
During each last quarter of the year preceding the calendar year of application, the Commission shall adopt one or more implementing acts to set out or revise the individual amounts of the fees referred to in paragraph 1 of this Article to be applied for that calendar year.
3. Until the establishment of the Union registry, a certification scheme shall establish and duly maintain a certification registry to make publicly accessible in a secure way the information related to the certification process, including the certificates of compliance and updated certificates of compliance, containing, as a minimum, the information set out in Annex III, to enable the tracing of the quantity of units certified in accordance with Article 9.
A certification registry shall use automated systems, including electronic templates, and shall be interoperable with registries of other recognised certification schemes in order to avoid double counting.
The Commission shall adopt implementing acts setting out the structure, format and technical details of the certification registries and of the recording, holding or use of certified units, including as referred to in this paragraph. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17.
4. Certified units shall be issued by certification registries or, once established, by the Union registry only after the generation of a net carbon removal benefit or net soil emission reduction benefit, based on a valid certificate of compliance resulting from a re-certification audit.
Any certified unit shall not be issued more than once and shall not be used by more than one natural or legal person at any point in time.
Permanent carbon removal units, carbon farming sequestration units, carbon storage in product units and soil emission reduction units shall remain distinct from one another.
5. Carbon farming sequestration units and carbon storage in product units shall expire at the end of the monitoring period for the relevant activity, and be cancelled in the certification registry or, once established, in the Union registry, unless the long-term storage of the removed carbon is proven through continued monitoring, in accordance with the rules set out in the applicable certification methodology.
Article 13
Recognition of certification schemes
1. Only a certification scheme recognised by the Commission by means of a decision may be used by an operator or a group of operators to demonstrate compliance with this Regulation. Such decision shall be valid for a period of no more than five years and shall be made publicly available in the Union registry.
2. A Member State shall notify to the Commission an application for recognition of a public certification scheme.
The legal representative of a private certification scheme shall notify to the Commission an application for recognition of that private certification scheme.
3. The Commission may, after appropriate consultation with the certification scheme, repeal a decision recognising that scheme pursuant to paragraph 1 of this Article where the certification scheme fails to implement the rules set out in the implementing acts referred to in Article 11(5).
Where a Member State or any other interested party raises duly substantiated concerns that a certification scheme does not operate in accordance with the rules set out in the implementing acts referred to in Article 11(5) which constitute the basis for decisions under paragraph 1 of this Article, the Commission shall investigate the matter and take appropriate action, including repealing the relevant decision.
4. The Commission shall adopt implementing acts setting out the structure, format and technical details of the recognition and notification processes referred to in paragraphs 1 and 2 of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17.
Article 14
Reporting requirements
1. Every year by 30 April, each certification scheme recognised by the Commission that has operated for at least 12 months shall submit to the Commission an annual report about its operations, including a description of any cases of fraud and related remediation measures, which covers the preceding calendar year.
The Commission shall make the reports referred to in the first subparagraph publicly available, in full or, where necessary to preserve the confidentiality of commercially sensitive information, in an aggregated form.
2. The Commission shall adopt implementing acts setting out the structure, format and technical details of the reports referred to in paragraph 1 of this Article. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 17.
CHAPTER 5
FINAL PROVISIONS
Article 15
Amendment to Annexes
1. The Commission is empowered to adopt delegated acts in accordance with Article 16 to amend Annex I in order to adapt it to new and emerging types of activities and to scientific and technical progress.
2. The Commission is empowered to adopt delegated acts in accordance with Article 16 to amend Annex II in order to adapt it to technical progress.
Article 16
Exercise of delegation
1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.
2. The power to adopt delegated acts referred to in Articles 8, 12 and 15 shall be conferred on the Commission for an indeterminate period of time from 26 December 2024.
3. The delegation of power referred to in Articles 8, 12 and 15 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.
4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Inter-institutional Agreement of 13 April 2016 on Better Law-Making.
5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.
6. A delegated act adopted pursuant to Article 8, 12 or 15 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.
Article 17
Committee procedure
1. The Commission shall be assisted by the Climate Change Committee established by Article 44(1), point (a), of Regulation (EU) 2018/1999. That committee shall be a committee within the meaning of Regulation (eU) No 182/2011.
2.
Where reference is made to this Article, Article 5 of Regulation (EU) No 182/2011 shall apply.
Article 18
Review
1. This Regulation shall be kept under review in all aspects, taking into account:
(a) relevant developments concerning Union law, including its consistency with Regulations (EU) 2018/841, (EU) No 2018/842 and (EU) 2021/1119 and Directives 2003/87/EC and (EU) 2018/2001;
(b) relevant developments concerning the UNFCCC and the Paris Agreement, including rules and guidelines related to the implementation of Article 6 of that Agreement;
(c) technological and scientific progress, best practices and market developments in the field of carbon removals;
(d) the potential for permanent carbon storage in third countries, subject to the existence of international agreements referred to in Chapter III of Regulation (EU) 2024/1735, while providing for conditions equivalent to those laid down in Directive 2009/31/EC to ensure that geological storage of CO2 that is captured is permanently secure and environmentally safe;
(e) the environmental impact of increased biomass use resulting from the application of this Regulation, including the impact on land degradation and ecosystem restoration;
(f) the impact on Union food security and land speculation; and
(g) the cost of the certification process.
2. By 27 December 2027, and subsequently within six months of the outcome of each global stocktake agreed under Article 14 of the Paris Agreement, the Commission shall report to the European Parliament and to the Council on the application of this Regulation.
3. By 31 July 2026, the Commission shall review the application of this Regulation to emissions reduction from the IPCC source category of agriculture, subcategory of 3.A enteric fermentation and subcategory of 3.B manure management, as determined pursuant to Regulation (EU) 2018/1999 and the implementing acts adopted pursuant to that Regulation, taking into consideration opportunity costs, the evolution of the regulatory framework, possible negative effects leading to an increase in greenhouse gas emissions, and the Union 2040 climate target as proposed in accordance with Article 4(3) of Regulation (EU) 2021/1119, and submit a report to the European Parliament and the Council. That report shall be based, inter alia, on a pilot certification methodology for activities that reduce agricultural emissions from enteric fermentation and manure management.
The Commission shall, where appropriate, submit a legislative proposal accompanying that report to extend the scope of the activities covered under this Regulation to emissions reduction from the IPCC source category of agriculture, subcategory of 3.A enteric fermentation and subcategory of 3.B manure management, as determined pursuant to Regulation (EU) 2018/1999.
4. By 31 July 2026, the Commission shall assess additional requirements needed to align this Regulation with Article 6 of the Paris Agreement and best practices, including corresponding adjustments, host party authorisation and methodologies. In that assessment, the Commission shall review the use of certified units to compensate for emissions generated outside of the Union’s NDC and the Union’s climate objectives. That assessment shall be accompanied, where appropriate, by a legislative proposal.
Article 19
Entry into force
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.