Businesses remain sceptical that a new EU certification framework for carbon removals is sufficient to generate a self-sustaining market, arguing Brussels must do more to make removing carbon from the atmosphere financially attractive.
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The prospect of a new EU certification framework for carbon removals is met with skepticism by businesses still determining its potential to stimulate a thriving market. While EU lawmakers strive to combat greenwashing in voluntary carbon offsetting, they aim to endorse qualifying carbon removals with an EU stamp of approval, expecting this to galvanize industry investment. However, concerns linger regarding the framework’s efficacy in making carbon removal financially appealing.
Fraught with allegations of fraud and ambiguity, carbon removals have struggled to align with the EU’s ambitious emissions reduction goals. The proposed certification regulation encompasses diverse carbon removal methods, from natural reforestation to technological solutions such as Direct Air Capture (DAC) and bioenergy with carbon capture and storage (BECCS). Despite efforts to ensure quantifiability and verification, doubts persist about its ability to create a robust market.
The discussion extends to the Emission Trading System (ETS), considered a primary avenue for making carbon removals financially feasible in Europe. Speculation arises about the ETS’s competitiveness against the potentially cheaper cost of carbon removals. While the ETS imposes a price on carbon emissions, its future trajectory concerning the cost-effectiveness of carbon removals remains to be determined. Proposals to integrate harmful carbon emissions into the ETS face debate and require exploration of a feasible framework.
The contention surrounding the EU’s certification framework for carbon removals reflects a broader challenge in aligning regulatory efforts with the financial attractiveness necessary to stimulate robust industry investment. Questions persist about whether these measures can sufficiently propel the market towards achieving ambitious emission reduction targets.
During Carbonica’s lifespan, certification and accreditation protocols will fully align with the new EU certification framework for carbon removals markets to support farmers by presenting a distinctive business opportunity that interconnects carbon farming innovations, environmental sustainability, and promising financial prospects.