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 baseline – CR total – GHG associated > 0,
where:
(a)
CR baseline is the amount of carbon removals under the baseline;
(b)
CR total is the total amount of carbon removals of the activity;
(c)
GHG associated is the increase in direct and indirect greenhouse gas emissions over the entire lifecycle of the activity 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.
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 baseline – CR total – GHG associated > 0,
where:
(i)
CR baseline is the amount of carbon removals under the baseline;
(ii)
CR total is the total amount of carbon removals of the activity;
(iii)
GHG associated is the increase in direct and indirect greenhouse gas emissions over the entire lifecycle of the activity 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 baseline – LSE total + ASE baseline – ASE total – GHG associated > 0,
where:
(i)
LSE baseline is the amount of LULUCF soil emissions under the baseline;
(ii)
LSE total is the total amount of LULUCF soil emissions of the activity;
(iii)
ASE baseline is the amount of agricultural soil emissions under the baseline;
(iv)
ASE total is the total amount of agricultural soil emissions of the activity;
(v)
GHG associated is the increase in direct and indirect greenhouse gas emissions over the entire lifecycle of the activity 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 CR baseline and CR total 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 baseline and LSE total corresponds to the 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.
The scope of the quantities referred to in ASE baseline and ASE total 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 total , and emissions from the IPCC source category of agriculture, subcategory of 3.D agricultural soils, shall be quantified and reported as GHG associated .
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 baseline – CR total – GHG associated > 0,
where:
(a)
CR baseline is the amount of carbon removals under the baseline;
(b)
CR total is the total amount of carbon removals of the activity;
(c)
GHG associated is the increase in direct and indirect greenhouse gas emissions over the entire lifecycle of the activity 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.
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 CO 2 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.
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.
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.
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.
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.
