The European Parliament has approved a provisional agreement to establish a voluntary certification framework for carbon removal activities.
The vote passed on Wednesday (10 April) with a significant majority (441 to 139), aims to encourage the development and use of various carbon removal techniques, including carbon storage through industrial technologies, long-lasting products, and carbon farming practices that improve soil carbon balance.
The use of carbon removals continues to be an ongoing topic of debate when it comes to decarbonisation. Some businesses use them to address scope 3 emissions, those indirectly generated throughout their supply chain, often accounting for over 90% of their total emissions.
However, concerns exist about potential “greenwashing,” with critics arguing that companies may rely on removals to avoid genuine emission reductions elsewhere.
For example, in 2023, a Guardian report raised concerns about the effectiveness of rainforest carbon offset programs, suggesting that more than 90% of carbon offsets by the biggest credit certifier, Verra, were worthless.
Shortly after, Verra, who has issued over one billion carbon credits since 2009, offered a rebuttal, submitting that the studies ‘massively miscalculate’ the impact of the projects they had previously validated.
The agreement comes alongside the Science Based Targets Initiative’s (SBTi) recent announcement regarding the decision to allow use of carbon credits in corporate net zero strategies as part of its Net Zero Standard. Notably, SBTi will only allow these credits to offset Scope 3 emissions.
Whilst it is currently unclear the scope and impact this certification will hold, the legislation aims to address concerns in the carbon removal market by promoting high-quality practices and ensuring their credibility through robust verification processes.
According to the EU, for any activity to qualify for certification it must go beyond both EU and national requirements for individual operators and the incentive effect of the certification must be needed for the activity to become financially viable.
Co-legislators also agreed that all carbon removals and emission reductions generated under this Regulation shall contribute to achieving the EU’s nationally determined contributions (NDCs) under the Paris Agreement.
“We delivered! I am very happy that the European Parliament has given its final green light to the Carbon Removal Certification Framework,” said rapporteur Lídia Pereira after the vote came through.
“I look forward to a future in which those who actively remove and store carbon get a proper incentive to do it. I am also thrilled to see that farmers can have an extra revenue stream for all their efforts! The Parliament was, once again, on the right side of history!”
The new legislation will now need to be approved by member states in the EU Council before entering into force.
