EU Carbon Removals and Carbon Farming Certification ("CRCF") Regulation

This has driven a rising number of greenwashing claims, as companies seek to distinguish themselves among consumers as sustainability frontrunners by claiming that their products are climate neutral, sometimes exclusively through the use of carbon offsetting - a practice which would be circumvented pursuant to the proposed Green Claims Directive. Until now, offsets have been mostly certified through initiatives of private actors, as opposed to methodologies underpinned by law. 

Simultaneously, there are efforts to reform the EU Common Agricultural Policy so that subsidies received by farmers incentivise the implementation of carbon farming practices, including rewetting peaty soils, planting trees (agroforestry), and soil protection measures. This is especially important in Ireland, where the agricultural sector is the largest contributor to the overall emissions, contributing to 37.8% of national greenhouse gas emissions in 2023.¹

New framework
EU Regulation 2024/3012 establishing a Union certification framework for permanent carbon removals, carbon farming and carbon storage in products ("CRCF Regulation") entered into force on 26 December 2024. This will assist the EU in reaching climate neutrality by certifying carbon removals and carbon farming to ensure that they are transparent and trusted, preventing greenwashing and creating new business opportunities.

The CRCF Regulation establishes a voluntary EU framework for the certification of carbon removals and soil emission reductions by laying down: 
•    quality criteria for carbon removal/reduction activities that take place in the EU; 
•    rules for the verification and certification of carbon removals and soil emission reductions; 
•    rules for the functioning and recognition by the European Commission of certification schemes; and
•    rules on the issuance and use of certified units. 

A relevant 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:

1) Quantification of the amount of additional carbon removals or soil emission reductions that an approved activity has generated in comparison to a baseline. The certification methodologies should establish standardised baselines which should be highly representative of the standard performance of comparable practices and processes in similar social, economic, environmental, regulatory and technological circumstances and take into account the geographical context, including local pedoclimatic and regulatory conditions.
2) Subtracting any associated greenhouse gas emissions occurring during the lifecycle of the activity and related to the implementation of the relevant activity.

Union Registry 

In order to ensure transparency and full traceability of certified units, and to avoid the risk of fraud and double counting, the Commission should establish by 25 December 2028 a Union registry for permanent carbon removals, carbon farming and carbon storage in products. 

Fraud concerns may result in repealing relevant decisions or cancelling the affected units. Fraud can take a number of forms:

• Where more than one certificate of compliance is issued for the same activity because the activity has been registered under two different certification schemes or has been registered twice under the same scheme. 
• Where the same certificate of compliance is used several times to make the same claim based on an activity or a certified unit. 

In order to account for the inherent risk of reversal of removed carbon, carbon farming sequestration units and carbon storage in product units should expire at the end of the monitoring period for the relevant activity, and be cancelled in the certification registry or, once established, in the Union registry, unless the operator or the group of operators commits to prolonging the monitoring period, in accordance with the rules set out in the applicable certification methodology.

Storage, monitoring and liability
In order to demonstrate that an activity stores carbon permanently or is aimed at storing carbon over the long-term, 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.

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.

Irish policy
An Irish Carbon Farming Framework is currently being developed. The Institute for European Environmental Policy recently analysed a sample 52 projects rolling out carbon farming practices (including eight in Ireland). These projects use combinations of 18 practices across four themes:

•    Agroforestry;
•    Cropland management;
•    Grassland, livestock and manure management; and
•    Peatland management.

Dr. Mike Brennan,  Senior Parliamentary Researcher in the Library and Research Service of the Oireachtas, outlined current codes covering carbon farming in existence in Ireland:

"These include work by LIFE Carbon Farming, FarmCarbon-EIP and Peatland Finance Ireland, all of which envisage a future where landowners can be financially rewarded for actions which reduce emissions and store carbon on their lands. The implementation of a single government-backed code, consistent with the EU’s CRCF Regulation, would support the successful operation of Carbon Farming in Ireland."

Business opportunities 
Wopke Hoekstra, Commissioner for Climate Action, spoke about the opportunities that will arise from the Regulation:

"Carbon removals and carbon farming will be an important part of our efforts to reach climate neutrality by 2050. With this new voluntary European certification framework for carbon removals and carbon farming, we will be unlocking new economic opportunities for farmers, foresters, builders and innovators. It's essential that we work with all these stakeholders for a more sustainable future where innovation meets environmental responsibility. Together we can create an innovative business environment to invest in and deploy high-quality carbon removals."

¹Environmental Protection Agency, "Ireland’s Provisional Greenhouse Gas Emissions" (EPA, July 2024), page 7.

How Fieldfisher can help
Fieldfisher's experts across its Planning & Environment and Corporate departments are well placed to manage your project from inception, through to planning and ultimately to successful operation.  Reach out to one of experts if you would like to discuss your project. 

Written by: Jonathan Moore and Adam Winston