EU's carbon removals framework clears final hurdle with approval from European Council

The European Council approved the EU-level certification framework for carbon removals, storage and farming Nov. 19, a significant step forward for the nascent sector.

The voluntary framework aims to promote high-quality carbon removal and soil emission reduction efforts within the EU, supporting the bloc's goal of achieving net zero emissions by 2050, the Council said.

The regulation will include permanent carbon removals that capture and store atmospheric or biogenic carbon for several centuries, which included technologies such as direct air capture and bioenergy with carbon capture and storage.

Carbon capture and storage activities in long-lasting products along with carbon farming activities that enhance carbon sequestration and storage in forests and soils, or emissions from soils, carried out over a period of at least five years; will also be part of the framework.

"The regulation will now be published in the EU's Official Journal and enter into force 20 days after its publication. It will then become directly applicable in all EU member states," the Council said.

Carbon dioxide removal refers to climate mitigation strategies that remove CO2 emissions from the atmosphere, as opposed to strategies to avoid such emissions.

It encompasses a wide array of approaches, including technology-based methods like direct air capture, biomass carbon removal and storage, and also nature-based projects such as afforestation and reforestation.

Removals certification, registry

Carbon removal activities will have to meet four overarching criteria in order to be certified: a quantified net carbon removal or net soil emission reduction benefit; additionality, ensure long-term storage, and they should do no significant harm to the environment and result in co-benefits of one or more sustainability goals.

Secondly, certification schemes will be in place for operators to prove compliance with the regulation. And, four years after the entry into force of the regulation, the European Commission will establish an electronic EU-wide registry to ensure transparency and full traceability of the certified units.

It will be the world's first registry for carbon dioxide removals and help scale up this emerging sector.

Critics argue that many carbon removal technologies are untested and expensive, while proponents say the methods are crucial for companies and countries to reach net zero.

But the popularity of carbon removals is on an uptrend despite some debate, with big corporate buyers pivoting toward premium-priced removals credits

Platts, part of S&P Global Commodity Insights, assesses the price of carbon credits generated from the most competitive tech-based credits.

Platts assessed the price of credits generated by tech-based carbon capture projects trading in the voluntary carbon market at $120/mt CO2e on Nov. 19.