Understanding the European Union Carbon Certification Framework
What is the EU CRCF?
The EU CRCF (European Union Carbon Removal Certification Framework) is a voluntary certification system established by the European Union to certify carbon removals, carbon farming, and carbon storage in products.
- The framework defines the criteria for activities to be eligible for certification and methodologies for quantifying net carbon removals and soil emission reductions.
- Upon verification of an activity, a certificate of compliance is issued, followed by the issuance of certified units (carbon credits).
- The framework also establishes a system of certification organisations, certification processes, and quantification methodologies.
Key Criteria for Certification
To be certified under the EU CRCF, projects must meet stringent quality standards:
1. Demonstrate Net Benefits:
Carbon farming activities must yield measurable carbon removal or soil emission reduction benefits. Net benefits are calculated using standardised or activity-specific baselines, accounting for greenhouse gas (GHG) emissions across the project lifecycle.
2. Ensure Additionality:
Projects must exceed existing legal requirements and be incentivised by certification. Additionality is presumed for activities using standardised baselines, but others may require further testing.
3. Long-Term Carbon Storage:
Projects must prove carbon is stored long-term through regular monitoring and risk mitigation plans. Without compliance, carbon units may expire and be cancelled.
4. Generate Sustainability Co-Benefits:
Certified activities must meet minimum sustainability and biodiversity standards, ensuring a positive environmental and societal impact.
5. Independent Verification:
Certification bodies assess and verify compliance through audits before issuing certificates and units.
How Does the Certification Process Work?
The EU CRCF certification process involves the following steps:
- Submission of Application: The Operator submits an application for certification of an activity to the Certification Scheme.
- Submission of Activity Details: The Operator provides the activity plan, evidence of compliance with quality criteria, net carbon removal/soil emission reduction benefit, and monitoring plan to the Certification Body.
- Appointment of Certification Body: The Certification Scheme appoints a Certification Body to assess the application.
- Certification Audit: The Certification Body conducts an audit to verify the information provided by the Operator.
- Issue of Certificate of Compliance: If the audit is successful, the Certification Body issues a Certificate of Compliance (CoC). The Certification Scheme publishes the CoC and audit report in its registry.
- Recertification Audit and Reissue of CoC: The Certification Body conducts periodic recertification audits (at least every 5 years) to ensure ongoing compliance.
- Issue of Units: After verification of net carbon removal/soil emission reduction benefits, the Certification Registry or Union Registry issues the corresponding carbon units.
Opportunities & Challenges
Project developers considering certification under the EU CRCF might face the following opportunities and challenges:
Opportunities:
- Transparency: The issuance of government-backed units and the maintenance of public certification records can enhance the credibility of carbon removal projects.
- Higher Value Units: The stringent standards of the EU CRCF could lead to certified units commanding premium prices in the voluntary carbon market.
- Sustainability Incentives: The framework's emphasis on biodiversity and co-benefits can add environmental and economic value to projects.
- Knowledge and Financial Support: Project developers may be able to access advisory services and funding through agricultural and national programs.
Challenges:
- Costs: Certification involves fees, the establishment of liability mechanisms, and ongoing monitoring expenses.
- Operational Complexity: Compliance with evolving standards and quantification methodologies may necessitate updates to existing systems.
- Limitations on Credit Use: CRCF-certified units contribute solely to EU Nationally Determined Contributions (NDCs), limiting their utility for international compliance buyers.
Why Consider EU CRCF Certification?
Project developers should consider EU CRCF certification because it offers:
- Robust assurances for carbon removal and soil emission reduction activities: The certification process ensures that projects meet high standards for quality and effectiveness.
- A signal of commitment to transparency, credibility, and long-term environmental impact: Aligning with the framework demonstrates a project's dedication to environmental responsibility.
- Enhanced credibility: The issuance of government-backed units and public certification records increases the trustworthiness of certified projects.
- Potential for higher-value units: The stringent standards of the EU CRCF could make certified units more valuable in the voluntary carbon market.
Overall, the EU CRCF provides a framework for project developers to demonstrate the quality and impact of their carbon removal efforts, potentially leading to increased recognition and financial benefits.
Frequently Asked Questions
Where do existing certification standards and organisations fit in the EU CRCF?
Existing standards can operate independently of the EU CRCF, as it is a voluntary framework. Projects can choose certification under the CRCF or other standards like Verra.
Organisations can also seek recognition as certification schemes under the EU CRCF, with details on eligibility and process still to be clarified. Recognised schemes would certify projects for compliance with CRCF requirements.
Is Verra or any other organisation/standard recognised under the EU CRCF?
Since the EU CRCF has not yet entered into force, no organisation has been recognised as a certification scheme under the CRCF.
Verra has expressed that it’s open to accrediting the VCS as a certification scheme under the EU CRCF.
How does the Verified Carbon Standard (VCS) differ from the EU CRCF?
Scope
- The Verified Carbon Standard (VCS) covers a wider range of activities compared to the Carbon Farming Framework (CRCF), which is limited to specific carbon farming activities in Treeconomy’s context.
- CRCF excludes activities under the EU ETS and those tied to non-EU Nationally Determined Contributions (NDCs).
Quality Criteria and Methodology
- CRCF has stricter requirements, including biodiversity benefits, long-term monitoring, and liability mechanisms, which go beyond the VCS principles.
- Both frameworks share key principles like additionality, transparency, and safeguards for reversal.
- The methods for meeting these criteria differ between the two.
Procedural Differences
While the certification steps are broadly similar, key differences include:
- Re-verification: CRCF requires additional checks after monitoring before issuing units.
- Monitoring: CRCF demands stricter long-term monitoring with penalties for non-compliance.
- Reviews: CRCF mandates routine re-verification, unlike VCS's occasional project reviews.
- Public Comment: VCS allows a public comment period; CRCF does not.
- Audit Process: VCS developers directly hire validators, whereas CRCF assigns auditors through its schemes.
- Regulation: CRCF involves oversight by the European Commission and Member States, adding an accreditation process for schemes and auditors.
Would there be project-specific protocols and methodologies?
Yes, different activities would have their methodologies to account for their unique characteristics. The Expert Group on Carbon Removal is currently discussing the methodologies for activities like forestry, agriculture, peatlands, and biochar.
Can a project be EU CRCF certified but NOT certified under another standard?
Once the CRCF is in operation, a project can be certified under the CRCF and not under another standard. Since the CRCF is a voluntary standard, projects are not bound to receive certification under it.
Get your nature and carbon strategy started with us.
Reach out
Follow us
A member of
