EU paves the way for carbon farming credits

All farmers should have access to carbon emission and removal data for their land by 2028. Carbon credits play a key role in the EU Commission’s plans to boost carbon sequestration on farmland.

In mid-December, the European Commission presented a communication on Sustainable Carbon Cycles1. The first part of the action plan presents several short-term measures to increase carbon removal in agriculture.

The central aim is to create more incentives for landowners to adopt practices that contribute to carbon storage, so-called carbon farming. This includes a broad range of activities such as: afforestation, agroforestry, conversion of arable land to permanent grassland, cover crops, conservation tillage and restoration of peatlands.

The Commission recognises that most of these measures can already be supported through Common Agricultural Policy. However, the extent to which this is done is up to the member states in the formulation of strategic plans. Most member states submitted their strategic plans to the EU Commission at the turn of the year for approval. In a recent evaluation carried out by the European Environment Bureau2, climate measures are either absent or insufficient in most of these plans. The Commission has the power to reject plans that do not deliver adequately on the set climate ambition. To what extent they will do that remains to be seen. At a conference in January, Vice-president Commissioner Frans Timmermans answered vaguely that they “will not be shy in pointing out the deficiencies” and “we are going to help member states doing the right thing”.

Is there a failing belief in member states’ willingness to pay for the necessary increase in carbon sequestration themselves? Much effort is put into preparing for a more widespread sale of carbon credits on a voluntary market. Potential buyers would be food companies with claims of being carbon neutral. Or even private individuals who would buy credits to soothe their climate conscience.

There is already a small and so far, unregulated market for carbon farming credits. However, among the pioneering projects there is considerable variation in how the carbon credits are calculated and validated. This is not good for an industry that is based on trust. The remedy put forward by the Commission is standardisation of monitoring, reporting and verification (MRV) methodologies for carbon farming. They have previously announced a law proposal for carbon farming credits by the end of this year.

To gather knowledge and experience from member states and stakeholders, the Commission announced that they will set up an expert group on carbon farming. Improving the quality of carbon farming credits and MRV methodologies is highlighted as a central task for the expert group. Furthermore, it is declared that every land manager should have access to verified emission and removal data by 2028.

The communication also contains proposals for research and development. A special section is dedicated to development of carbon storage in marine environments, so called blue carbon. This could include carbon farming through nature-based solutions, for example on coastal wetlands as well as seaweed and mollusc regenerative aquaculture and marine permaculture.

Finally, the Commission also promises by 2023 to carry out a study to assess the potential to apply the polluter-pays principle to emissions from agricultural activities. This seems a little out of place considering the focus on carbon removal in the communication. Although it may be justifiable in the sense that if you get paid for carbon sequestration, you must also pay for your emissions.

Kajsa Pira

¹ Sustainable Carbon Cycles COM(2021) 800 https://ec.europa.eu/clima/eu-action/forests-and-agriculture/sustainable...
² CAP Strategic Plans – are they likely to deliver on given promises? February 2022 https://eeb.org/cap-national-strategic-plans-will-fail-to-deliver-on-eur...