Food System

Carbon farming, Council green light for EU certification of carbon credits in agriculture

December 21, 2022

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The Council approved the European Commission’s communication on carbon farming, to establish an EU certification system for carbon credits in agriculture, forestry and aquaculture (1,2).

EU member states highlight the key role of such activities both in combating climate change by storing carbon from the atmosphere and in ensuring food security.

National governments also identify sources of funding, public and private. And they propose the formation of a group of experts to develop carbon credit certification systems.

1) Green Deal and carbon farming, premise.

Carbon sequestration in agricultural soils and waters fits into the scenario of the
European Green Deal
. As a contribution to the achievement of greenhouse gas reduction targets, -55% between 1990 and 2030(Fit for 55 package), as defined in reg. EU 2022/1119(European Climate Law). (4)

Net carbon uptake in soils is therefore expected to reach by 2030 the level already last achieved in 2013 (310 Mt/year of CO2eq). In view of the climate neutrality of the entire agricultural sector to which the EU aspires by 2035. And so the revision of theLand Use, Land Use Change and Forestry (LULUCF) regulation was proposed. (5)

1.2) Sustainable Carbon Cycles, the European proposal.

Communication on Sustainable Carbon Cycles, proposes a series of short- and medium-term actions:

– Promote carbon farming practices under the Common Agricultural Policy (CAP) and other EU programs, such as LIFE and the Soil Deal for Europe research mission in Horizon Europe. As well as through national and private public funding,

– Establish EU standards on monitoring, reporting and verification necessary to establish a reliable certification system as a basis for the development of voluntary carbon markets,

– share know-how, data management, and consulting services for land, land and water managers (so-called blue carbon). Pilot projects in this area aim to implement marine regeneration, oxygen production and food security through new production models such as regenerative aquaculture.

1.3) The panel of experts

A group of experts is to be organized to assist the Commission in implementing the proposal. Namely, for:

Examine existing carbon farming practices and carbon credit certification systems,
Fine-tuning the EU model,
Assess its potential impacts on reducing greenhouse gas emissions in agriculture.

2) Funding Sources.

Farmers, foresters and aquaculture operators, the Council stresses, must be encouraged to adopt carbon farming practices with appropriate public and private funding measures.

Public funding sources for carbon sequestration in agricultural soils have been identified in the Common Agricultural Policy and other EU programs, including Cohesion Policy funds (Interregional Cooperation, INTERREG).

Horizon Europe
can in turn fund, in addition to good carbon practices, the additional resources useful for monitoring, reporting and verifying projects.

3) Certification of carbon credits

‘Establishing a robust and crediblecertification system for carbon removals is the crucial first step in achieving a net contribution from carbon removals in line with the EU’s climate neutrality goal.’ So said the majority (89%) of stakeholders who responded to the public consultation. (6)

3.1) QU.A.L.ITY

The carbon allowance certification proposed by the Commission and approved by the Council should meet four criteria, identified in the acronym QU.A.L.ITY:

QUantification
. Carbon removal activities must be measured accurately,
Additionality and baselines
. Carbon removal activities must go beyond existing practices and what is required by law.
Long-term storage
. The certificates are tied to the duration of carbon storage, so that permanent storage is guaranteed.
sustainabilITY
. Carbon removal activities must preserve or contribute to sustainability goals such as climate change adaptation, circular economy, water and marine resources, and biodiversity.

3.2) Certification, the three requirements

Certification schemes should also meet three requirements:

transparency. Certification schemes should be operated on the basis of reliable and transparent procedures,
independent verification. Compliance of carbon removals with QU.A.L.ITY criteria should be verified by a third party,
full disclosure. All information on certified carbon removals should be publicly available and traceable through public records.

The agricultural sector should make extra money from adhering to suitable agronomic practices to reduce Greenhouse Gases (GHG) emissions and retain carbon.

4) Perspectives

The European Commission will develop a carbon farming certification system tailored to the different types of activities, with technical support from the expert group mentioned above (see section 1.3).

The system will become fully operational when the Commission has adopted the first certification method and recognized the first certification scheme.

5) Greenwashing risk

The risk of greenwashing is high to the extent that carbon farming is not tied to agroecology. That is, to compliance with the rules established in the organic system, albeit in conversion. (7)

The business of ‘carbon farming’ must not exacerbate the loss of biodiversity already caused by the Common Agricultural Policy, (8) nor pesticide pollution of air, soil and water (surface and ground). (9)

The carbon credits market, on the other hand, cannot compensate for the failure of climate neutrality targets from which the EU is moving further and further away, partly because of the conflict decided in Brussels without involving citizens. (10)

Dario Dongo and Giulia Pietrollini

Notes

(1) Dario Dongo, Giorgio Perrone. Carbon farming and carbon certificates in agriculture, the EU project. GIFT (Great Italian Food Trade), 1.2.22

(2) Communication from the Commission to the European Parliament and the Council. Sustainable Carbon Cycles. https://climate.ec.europa.eu/system/files/2021-12/com_2021_800_en_0.pdf COM(2021) 800 final. 15.12.21

(3) Council of the EU. Council adopts conclusions on carbon farming. https://www.consilium.europa.eu/en/press/press-releases/2022/04/07/council-adopts-conclusions-on-carbon-farming/ Press release. 7.4.22

(4) European Climate Law. Regulation (EU) 2021/1119 establishing the framework for achieving climate neutrality https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32021R1119

(5) Commission staff working document impact assessment report, accompanying the document Proposal for a Regulation of the European Parliament and the Council amending Regulations (EU) 2018/841 as regards the scope, simplifying the compliance rules, setting out the targets of the Member States for 2030 and committing to the collective achievement of climate neutrality by 2035 in the land use, forestry and agriculture sector, and (EU) 2018/1999 as regards improvement in monitoring, reporting, tracking of progress and review. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52021SC0609&qid=1635331144182 SWD/2021/609 final

(6) Commission staff working document executive summary of the impact assessment report. Accompanying the document Proposal for a Regulation of the European Parliament and of the Council establishing a Union certification framework for carbon removal. 30.11.2022

(7) IFOAM Organics Europe position paper on carbon farming and the revision of the LULUCF Regulation. https://www.organicseurope.bio/content/uploads/2022/04/IFOAMEU_advocacy_climate-change_position-paper_042022.pdf?dd April 2022

(8) Dario Dongo. CAP, pesticides and biodiversity. EU Court of Auditors Report. GIFT (Great Italian Food Trade). 29.7.20

(9) Dario Dongo. ISPRA, 2020 report on pesticides in water. GIFT (Great Italian Food Trade). 24.12.20

(10) Donna Harris. How the war in Ukraine derails future climate negotiations: Can we put ourselves back on track for COP27? https://www.opml.co.uk/blog/how-war-ukraine-derails-future-climate-negotiations-back-track-cop27 Oxford Policy Management. September 2022