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(1) Under the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (UNFCCC) (the ‘Paris Agreement’), which was approved by means of Council Decision (EU) 2016/1841 , the international community has agreed to hold the increase in the global average temperature well below 2 oC above pre-industrial levels and to pursue efforts to limit the temperature increase to 1,5 oC above pre-industrial levels. The Conference of the Parties to the UNFCCC also adopted the Glasgow Climate Pact on 13 November 2021, which acknowledges that the impact 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 reducing greenhouse gas emissions and by increasing carbon removals.

(2) On a global scale, the reports by the Intergovernmental Panel on Climate Change (IPCC) point towards a decreasing likelihood of limiting global warming to 1,5 oC unless rapid and deep cuts in global greenhouse gas emissions occur throughout the remainder of this decade and in the coming decades. The IPCC reports also clearly state that the deployment of carbon dioxide (CO2) removal to counterbalance hard-to-abate residual emissions is unavoidable if net-zero CO2 or greenhouse gas emissions are to be achieved. This will require the large-scale deployment of sustainable activities for capturing CO2 from the atmosphere and durably storing it in geological, terrestrial or marine reservoirs, including oceans, or in long-lasting 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.

(3) The aim of this Regulation is to develop a voluntary Union certification framework for permanent carbon removals, carbon farming and carbon storage in products (the ‘Union certification framework’), with a view to facilitating and encouraging the uptake of high-quality carbon removals and soil emission reductions, in full respect of the Union’s biodiversity and the zero-pollution objectives, as a complement to sustained emission reductions across all sectors. The Union certification framework will thus be a tool to support the achievement of the Union objectives under the Paris Agreement, in particular the collective achievement by 2050 of the climate-neutrality objective laid down in Regulation (EU) 2021/1119 of the European Parliament and of the Council . All carbon removals and soil emission reductions certified under the Union certification framework should contribute to the achievement of the Union’s nationally determined contribution (NDC) and its climate objectives. Therefore, in order to avoid double counting, those carbon removals and soil emission reductions should not contribute to third-party NDCs or international compliance schemes. The Union also committed to generating negative emissions after 2050. An important instrument to enhance carbon removals in terrestrial ecosystems is Regulation (EU) 2018/841 of the European Parliament and of the Council on the inclusion of greenhouse gas emissions and removals from land use, land use change and forestry (LULUCF) in the 2030 climate and energy framework, which sets out a Union target for net removals of 310 million tonnes of CO2 equivalent by 2030 and allocates targets to each Member State.

(4) In its communication of 6 February 2024 entitled ‘Towards an ambitious Industrial Carbon Management for the EU’, the Commission envisages assessing overall objectives for carbon removal needs in line with the Union’s 2040 climate ambition and the goal to reach climate neutrality by 2050 and negative emissions thereafter; developing policy options and support mechanisms for industrial carbon removals, including if and how to account for them in the Union emissions trading system; and in parallel, boosting Union research, innovation and early-of-a-kind demonstration for novel industrial technologies to remove CO2 under Horizon Europe, the framework programme for research and innovation established by Regulation (EU) 2021/695 of the European Parliament and of the Council , and the Innovation Fund established by Directive 2003/87/EC of the European Parliament and of the Council . In addition, it is appropriate that the Commission assess options for Union targets for carbon removals, including clearly setting a separate target for permanent carbon removals.

(5) A harmonised Union certification framework is expected to enhance the environmental integrity and transparency of permanent carbon removals, carbon farming and carbon storage in products and promote trust in their certification, while reducing the associated administrative costs. The voluntary nature of the Union certification framework means that existing and new public and private certification schemes will be able to apply for recognition by the Commission under this Regulation but will not be obliged to do so in order to operate in the Union.

(6) Regulation (EU) 2021/1119 also sets out a binding Union climate target of a domestic reduction of net greenhouse gas emissions by at least 55 % compared to 1990 levels by 2030. In order to ensure that sufficient mitigation efforts are deployed up to 2030, the contribution of net removals to the Union 2030 climate target is limited to 225 million tonnes of CO2 equivalent.

(7) The Union certification framework will support the development of permanent carbon removals, carbon farming and carbon storage in products in the Union that result in an unambiguous positive climate impact, while avoiding greenwashing. In the case of carbon farming, the Union certification framework should also promote the uptake of activities that generate co-benefits for biodiversity, thereby contributing to achieving the nature restoration targets set out in Union law.

(8) It is appropriate that the Union certification framework also encourage research and innovation, including by emphasising the role of relevant research programmes, with the aim of facilitating access to the market for new technologies. In this regard, the Commission and the Member States are encouraged to engage in cross-disciplinary cooperation, involving national and regional research institutions, scientists, farmers and small and medium-sized enterprises.

(9) In order to support operators willing to make additional efforts to increase carbon removals or reduce soil emissions in a sustainable way, the Union certification framework should take into account the different types of activities, their specificities and the related environmental impact. Therefore, this Regulation should provide clear definitions of permanent carbon removals, carbon farming and carbon storage in products, and other elements of the Union certification framework. Its scope should include activities that enhance carbon storage in geological, terrestrial or marine reservoirs, including oceans, and in long-lasting products. Activities should include one or more practices or processes that remove carbon from the atmosphere. Certain activities, such as those based on the use of biochar, can result in different types of net carbon removal benefits and durations of carbon storage, depending on the specific conditions under which the activities take place. Accordingly, appropriate monitoring and liability rules should be set out in the applicable certification methodologies to be established at Union level pursuant to this Regulation.

(10) In the case of carbon farming, relevant activities can include practices and processes carried out in marine and coastal ecosystems. Relevant activities can also include practices or processes that reduce greenhouse gas emissions from soils or result in the reduction of carbon release into the atmosphere from soil carbon pools as listed in Section B, points (e) and (f), of Annex I to Regulation (EU) 2018/841, as is the case, for instance, for activities that improve soil management or restore degraded peatlands. In addition, reductions of emissions from agricultural soils, corresponding to the emissions from the IPCC source category of agriculture, subcategory of agricultural soils, as reported in table 3.D of the common reporting format tables under the UNFCCC reporting guidelines on annual inventories for Parties included in Annex I to that Convention, should also be included in the quantification of carbon farming activities as long as those emission reductions result from an activity that, overall, reduces the emission of carbon from soil carbon pools or increases carbon removals in biogenic carbon pools. On the contrary, activities which do not result in either carbon removals or soil emission reductions, such as avoided deforestation projects or renewable energy projects, should not be included in the scope of the Union certification framework.

(11) This Regulation should set out the requirements under which carbon removals and soil emission reductions are eligible for certification under the Union certification framework. To that end, carbon removals and soil emission reductions should be quantified in an accurate and robust way, and should be generated only by activities that generate a net carbon removal benefit or a net soil emission reduction benefit, are additional and aim to ensure long-term storage of carbon. They should do no significant harm to the environment and should be able to result in a co-benefit in relation to sustainability objectives. Carbon removals and soil emission reductions should be subject to independent third-party auditing carried out by certification bodies in order to ensure the credibility and reliability of the certification process. Furthermore, this Regulation should set out rules on the issuance and use of certified units.

(12) Mandatory Union carbon pricing rules established through Directive 2003/87/EC 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 capture and storage of CO2 emissions from biofuels, bioliquids and biomass fuels that meet the sustainability and greenhouse gas emissions saving criteria established under Directive (EU) 2018/2001 of the European Parliament and of the Council , 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.

(13) An activity should result in a net carbon removal benefit or a net soil emission reduction benefit, thereby showing that it delivers a positive climate impact. The net carbon removal benefit or the net soil emission reduction benefit should be quantified following two steps.