In a major market move, the EU Commission has officially adopted the first set of methodologies under the Carbon Removals and Carbon Farming (CRCF) Regulation, marking a turning point for a number of carbon dioxide removal (CDR) pathways.
With this motion, the EU has created the world’s first comprehensive, voluntary standard for permanent carbon removals, providing a long-awaited clarity for CDR companies and investors.
Policy support is one of the crucial components needed for unlocking reliable CDR demand that would enable these technologies to scale to climate-relevant levels in time to avoid the worst consequences of climate change.
This major update is expected to stimulate CDR investments and innovations while also helping the EU advance towards its goal of becoming climate-neutral by 2050.
Additionally, its momentum could potentially echo in the upcoming revision of the EU Emissions Trading System and the Carbon Border Adjustment Mechanism (CBAM) in July, where the Commission is expected to explore the integration of carbon removals.
Commenting on the day of the news release, Christoph Gebald, CEO of CDR trailblazer Climeworks, said,
“Today marks a new era for carbon removal in Europe. By setting clear, enforceable rules for permanent carbon removals, the Commission is effectively de-risking the sector for investors and buyers alike. This isn’t just a regulatory update; it is the creation of a blueprint for a global carbon market. This standard cements Europe’s role as the primary architect of the future carbon economy.”
The three adopted CRCF certification methodologies apply for permanent carbon removal activities with direct air capture with carbon storage (DACCS), biogenic emissions capture with carbon storage (BioCCS), and biochar carbon removal (BCR).
These three approaches were selected due to their technological maturity and high potential for contributing towards the climate targets of the European Union.
The approved methodologies lay out clear, legally backed, voluntary rules for permanent carbon removals, providing definitions on what counts as a tonne of CO2 removed, criteria for permanence, and steps to be followed for addressing key risks such as leakages.
With established governance rules and the certification framework now in place, CDR developers active in these three sectors can start applying for EU CRCF certification, allowing the first projects to be recognized under this regulation in the coming months.
Relevant: EU Commission Announces New Steps Towards The CRCF Regulation
The delegated Regulation will now be transferred to the European Parliament and the Council of the EU for a two-month scrutiny period, which could be extended by two more months. Given there are no objections, the Regulation is expected to be published in the Official Journal in the beginning of April, and it would enter into force 20 days after the publication.
By approving the first CRCF methodologies, the European Union is fortifying its leadership in carbon management on the global market, setting a precedent for other regions working on climate development.
Wopke Hoekstra, European Commissioner for Climate, Net-Zero, and Clean Growth, stated, “The European Union is taking decisive action to lead the global effort in carbon removals. By establishing clear, robust voluntary standards, we are not only fostering responsible and climate action within Europe but also setting a global benchmark for others to follow. This is a vital step toward achieving our climate neutrality targets and ensuring a sustainable future.”
Read more: The Negative Emissions Platform Outlines Ways To Unlock Short-Term CDR Demand In The EU
At the same time, the EU is also working on delegated regulations for certification methodologies for carbon farming and CO2 storage in bio-based construction products, with adoption expected in 2026.
To stimulate the market for CRCF credits, the Union has also announced the establishment of an EU Buyers’ Club for permanent removals and carbon farming under the new EU Bioeconomy Strategy.
Going forward, the Union will work on driving both public and private finance for CDR solutions while also supporting this sector through the European Innovation Council and the Innovation Fund.
