European Commission adopts first methodologies for certifying permanent CO2 removals

The European Commission has approved the first set of methodologies for the voluntary certification of activities involving the permanent removal of carbon dioxide (CO2) from the atmosphere. This milestone reinforces the European Union’s position as a pioneer in establishing a common technical framework for carbon removal solutions.

The decision strengthens Europe’s commitment to achieving climate neutrality by 2050, while also creating new opportunities for sectors focusing on innovation and climate technologies. In this context, emissions reduction must be complemented, where necessary, by properly certified permanent removal solutions.

ACTIVITIES COVERED BY THE NEW FRAMEWORK

The new rules fall under the CRCF (Certification for Carbon Removals and Carbon Farming) Regulation, which establishes the European legal framework for certifying carbon removal activities.

In this initial phase, the system covers three types of solutions that are considered to be technologically mature:

• Direct air capture with carbon storage (DACCS).
• Biogenic carbon capture with carbon storage (BioCCS).
• Biochar Carbon Removal (BCR).

Projects based on these technologies can now be recognised under the European carbon removal certification system, provided they meet the defined methodological requirements.

TECHNICAL RIGOUR AND HARMONISED CRITERIA

The methodologies adopted are aligned with Implementing Regulation (EU) 2025/2358, which was published in November. They clarify key aspects to ensure the environmental integrity of permanent carbon removals.

Key elements include:

• The methodology for quantifying one tonne of CO2 removed.
• Criteria for ensuring the permanence of storage.
• Monitoring and verification requirements.
• Risk management rules, including leakage, reversals and associated liabilities.

This harmonised approach means that certification is based on a common technical standard rather than fragmented methodologies. This strengthens the credibility of climate claims and reduces the risk of greenwashing.

The delegated act will now be reviewed by the European Parliament and the Council before formal publication.

NEXT DEVELOPMENTS EXPECTED IN 2026

The European Commission is currently finalising two additional delegated acts, which are expected to be adopted in 2026. These acts will extend the framework’s scope to new strategic areas.

Carbon Farming

Including practices such as:

• Regenerative agriculture.
• Agroforestry.
• Peatland rewetting.
• Reforestation.

Carbon storage in bio-based construction materials

Including solutions based on structural timber and other bio-based materials.

These developments are expected to significantly impact key sectors of the European economy and expand opportunities within the certified carbon removals market.

CARBON NEUTRALITY AND ESG TRANSITION: A STRATEGIC PRIORITY

Within the context of the ESG transition, companies are increasingly required to align their operations with carbon neutrality principles, in line with the European regulatory framework.

Environmental, social and governance (ESG) practices are no longer just a matter of reputation, they are now grounded in increasingly stringent technical and regulatory requirements. The new certification system reinforces this framework, ensuring greater transparency, consistency and credibility in the use of permanent removals as a complement to direct emissions reduction.

IMPLICATIONS FOR COMPANIES IN PORTUGAL

For companies with decarbonisation strategies or net-zero targets, the new framework introduces greater rigour in the use of permanent removals. Certification now complies with clear, verifiable and auditable methodological criteria.

In Portugal, where industrial sectors with potential for carbon capture and storage technologies coexist with a significant agroforestry sector, this system could generate opportunities in the following areas:

• Investment in climate technologies.
• Competitive differentiation.
• Access to financing with demanding ESG criteria.
• Greater funding for projects aligned with the European framework.

By establishing a common technical foundation for certifying permanent carbon removals, the European Union is strengthening trust in the climate solutions market and supporting a more structured and robust transition to ESG.

HOW H1ID CAN SUPPORT YOUR COMPANY IN CARBON REMOVAL CERTIFICATION

At H1ID, we closely monitor developments in the European ESG and carbon neutrality regulatory landscape. We support organisations in adapting their strategies to this evolving regulatory context.

We provide support in the following areas:

• Regulatory and strategic framework analysis.
• Technical structuring of projects.
• Assessment of eligibility for funding instruments.
• Preparation for certification, monitoring and reporting processes.

In a context of increasing regulatory requirements and market scrutiny, ensuring alignment with European standards is a key factor for competitiveness. H1ID is ready to support your organisation on this journey.