Carbon removal certification: covering both emission reduction & sequestration

To meet its climate objectives, the European Union needs a strategy to support the implementation and deployment of carbon mitigation solutions. The stakes are high: Europe aims to have its Forestry andAgricultural Land Use sector climate-neutral by 2035.

The EU developed a system of incentives that would allow land managers, including farmers, to be rewarded financially for their transition towards low-carbon agriculture. Today, however, the agricultural sector emits 424 Mt CO2 eq/year, while the land use sector compensates for only half of its emissions (net LULUCF balance: -226 Mt CO2 eq).

Therefore, achieving a neutral balance in the next ten years is a major challenge.

Currently, the European Parliament is working on the carbon removal certification framework proposed byt the European Commission, which is a flagship regulation toward this goal. It aims at creating a system of incentives that would reward land managers, especially farmers, for mitigating emissions through the adoption of carbon farming practices.

Carbon farming” includes agricultural practices that allow :

  • Carbon removal/sequestration (carbon capture and storage in soil and biomass);
  • To avoid future emissions of CO2 and other GHGs (prevention of loss of already stored carbon);
  • To reduce existing CO2 and other GHG emissions.

The total global terrestrial mitigation potential is of 13.8 Gt CO2eq/year. Forests and other ecosystems account for the largest share of these mitigation measures, with a potential of 6.6 Gt CO2eq/year or nearly 50% of the global terrestrial potential. The reduction of global deforestation is the action with the highest potential mitigation, amounting to 25% of the total global mitigation potential (3.5 Gt CO2eq/year). Meanwhile, agriculture has the second largest share of land-based mitigation with a potential of 5.3 Gt CO2eq/year, or 38% of the global terrestrial potential (Figure 1).

The EU provides a land-based mitigation potential of 0.52 Gt CO2eq/year, which is less than 4% of the total global mitigation potential. By comparison, Brazil alone represents three times the European mitigation potential (1.6 Gt CO2eq/year), a potential mainly covered by mitigation linked to the reduction of deforestation in the country. Worldwide, 15 countries account for 62% of the total global mitigation potential. Most of thesecountries have, however, low feasibility potential (due to low levels of development).

The European Commission wants to develop a legal framework for the certification of carbon mitigationpractices in the agricultural sector and encourage farmers to increase their contribution to the achievement of climate goals by remunerating them for implementing agricultural carbon mitigation activities. This framework for carbon farming is subject to many uncertainties and issues that need to be addressed to harness its potential against climate change. A robust climate and environmental model is needed. The legislative framework for the certification and remuneration of CO2 elimination/reduction actions will have to address the following issues to ensure results that are compliant with EU climate requirements:

ADDITIONALITY

Only mitigation by carbon agriculture that goes beyond the legislative status quo will have a robust impact on the climate. Additionality is an essential condition in the design of the future European carbon agriculture rewards mechanism.

NO DOUBLE COUNTING

Carbon mitigation is additional if each carbon unit generated is counted only once. Carbon exploitation mechanisms will need to be strict and transparent enough to ensure the integrity of the carbon agriculture reward model.

REDUCTION & STORAGE

Assessing only carbon sequestration resulting from Carbon Farming actions can lead to serious calculation errors. An assessment based solely on sequestration overshadows the potential negative externalities of emission reduction practices. There is a close link between emissions and storage: the same practice can make it possible to increase carbon sequestration while increasing emissions (and vice versa), which can lead to counterproductive results. A results-based model that is robust at the climate and environmental levels must not separate reduction from sequestration.

IMPERMANENCE

Some changes, whether intentional or not, can lead to risks of inversions and losses of captured carbon. It is impossible to guarantee carbon storage in the agricultural sector for as long as it is often required (100 years). In order not to discourage sequestration actions, which in the short term can account for significant amounts of carbon, shortterm storage should be encouraged to stimulate farmers’ transition and investments in sequestration practices. Various mechanisms exist to integrate short-term storage into the carbon market and the associated risk which should be deployed: reserve funds, insurance, rebate systems, etc.

LEAKAGE EFFECTS

Climate change has no borders. If carbon mitigation measures in Europe lead to an increase in emissions in the rest of the world, the real impact of Europe’s climate actions will not be perceived. In particular, carbon farming actions leading to a decrease in European food production could lead to increased compensatory agricultural production at the global level, and therefore towards a less regulated production, polluting and emitting more GHGs. Therefore, the concept of Carbon Farming must be considered in perfect harmony with the primary vocation of agriculture: food production.

IMPACTS AND CO-BENEFITS

There is a risk that some mitigation measures will negatively affect other ecosystem aspects, such as biodiversity, soil health, air and water, or society. The Carbon Farming model will have to be consistent with the various EU environmental directives and regulations. Carbon agriculture programs must be able to support the full social, environmental and socio-economic objectives of the European Green Deal. There are many environmental crises, the climate crisis is just one of them.

Scaling up a Carbon Farming model requires reducing the uncertainties for farmers, and for all stakeholders involved. A standardization effort at the EU level is to be carried out, and the control and certification of these practices will have to follow high standards so that the certificates issued guarantee true environmental integrity.

There are close links between these different Greenhouse Gases (GHGs). Therefore, focusing only on measures of carbon storage or reduction of emissions (CO2, N2O, CH4) can have antagonistic effects and lead to harmful net emission balances.

In particular, because carbon storage in agricultural soils is directly proportional to the amount of biomass produced, reducing the production of biomass leads to risks of carbon removal from the soil.

For example, reducing a nitrogen input (to reduce N2O emissions), mechanically reduces biomass productionand therefore storage capacity. The introduction of pulses can also lead to a risk of soil destocking due to theiroften lower C/N ratio than other crops and sometimes lower biomass production. Conversely, increasingbiomass production by adding fertilizers can increase carbon sequestration in soils but also increase GHGemissions.

It is often difficult to reduce emissions without removing carbon from the soil, and conversely to store carbon in the soil without increasing emissions. These agronomic arguments based on the experience of actors in the field suggest that a method opting for a distinct approach between these two positions would lead to climatic aberrations. A comprehensive measure of the variation in greenhouse gas emissions and carbon storage caused by a project is required.

Links between sequestration and emissions are clear, and the rational at macro and micro level to cover both in the same regulation. Therefore, Farm Europe considers this regulation as a unique opportunity to send a clear signal to EU farmers and to unleash the potential of carbon farming practices, covering both, storage and emissions reduction.

Our case study on a farm in Eastern France confirm the need to cover both reduction and storage in a single scheme for agronomic, climate and economic reasons.

On this farm, since the end of 1990, an increase in the organic matter (OM) content of +12‰ has been identified, directly reflecting a proportional increase in the carbon content of the farm’s soils. This increase in soil carbon stocks should be compared with an increase in irrigated maize areas combined with an increase in crop productivity on the same period.

Maize and wheat crop yields have increased by +100% and +70% respectively since the 1970s. These results showcase the direct link that exists between the amount of biomass produced and the levels of carbon storage in soils.

This data clearly shows that it is possible to increase soil carbon storage while improving crop productivity. Europe’s low-carbon agriculture policy will have to prevent productivity losses in the EU, as the challenges of increasing global export emissions are considerable.

The farm in question has recently embarked on a low-carbon transition through three levers:

  • a reduction in GHG emissions from fertilization,
  • a reduction in off-farm emissions, and
  • an increase in soil carbon storage.

The operating balance after the implementation of the project is estimated at 288 tCO2eq/year (excluding hedge storage), a decrease of -13% compared to the initial situation. This balance represents a relatively high level of emissions depending on whether this figure is related to the ha or tonne produced. The emission level per ha is relatively high (4 tCO2eq/ha/year), while on the contrary, per tonne, the emission level is very low (0.4 tCO2eq/TMS/year). In a context, where leakage effects and food security constitute important climate and security issues, emission levels reported per tonne produced appear to be a more relevant way of measuring the climate impact of a farm.

LIVESTOCK IN THE UE – PERIODIC NEWS

INTRA-EU NEGOTIATIONS
Council reaches agreement on amendments to the Industrial Emissions Directive. The Member States amended the Commission’s proposal. This proposal will serve as a basis for negotiations with the European Parliament.

For MEPs, the Commission’s fertiliser strategy, which proposes mobilising the crisis reserve and increasing state aid ceilings, will not be enough. The demands are for the mobilisation of effective instruments in the longer term.

The Latvian and Lithuanian delegations draw the attention of the Commission and the Member States to the deteriorating situation in their dairy sectors. Exceptional and immediate financial support from the EU is requested by Latvia, Bulgaria and Lithuania.

NUTRITION – LABELING
The French Nutriscore no longer seems to be the only option for the Commission to design a European scheme. Brussels is currently examining the various existing display systems.

TRADE
The European agricultural sector is concerned about the planned agreement between the EU and Mercosur. While the German government defends the agreement, some Member States, such as France and Austria, share the concerns of the agricultural sector. France is demanding mirror clauses to ensure a level playing field.

REPORTS
A new EFSA report recommends avoiding the use of cages in laying hen and broiler farms.

The Commission’s Report on Pigmeat was presented. It provides socio-economic, environmental, health and animal welfare recommendations.

According to data published by the EU’s Copernicus Climate Change Service, the average temperature in Europe was 1.4 degrees Celsius above the 1991-2020 average (over the December/February period). The areas at risk are mainly northern Italy, France and Spain.

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NUTRITION & HEALTH : IMITATION MEAT DEBUTS IN THE USA

In November, the US Food & Drugs Administration, the public office responsible for food safety, approved the first step that opens the door to commercialization to an imitation of ‘chicken’ produced in the lab by UPSIDE Food. At the same time, ingredient-provider start up is proposing to replace bees with bioreactors and precision-fermentation to supply the honey of the future. A study that was published analyzing the change in diets (based on fewer animal-based products) confirms that it could lead to a resurge of iodine deficiency disorders, with potential long-lasting impact on brain development.

More delays expected for the front-of-pack nutritional labelling dossier: in fact, even if the Commission was expected to start discussing draft legislation under the Czech Presidency of the Council, during several public events, it announced that the dossier still needs further analysis, and an impact assessment is undergoing. Probably, it will be the Swedish Presidency that will have to handle this file … if the Commission proposed a draft in the next six months.

New literature finds that industrial products that aim to imitate meat contain ‘anti-nutrients’, that do not allow the body to correctly absorb specific nutrients such as iron and zinc.

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FARM TO FORK STRATEGY: MEMBER STATES CALL FOR A NEW REVISION OF SUR

November was marked by the Commission communication on fertilizers whose aim is to face the consequences of the skyrocketing prices for this agricultural input for farmers.

On the legislative dossiers, the revision of the sustainable use of pesticides has also been affected by the current crisis and the consequences of the Russian aggression to Ukraine, having an important group of member States calling for the Commission to reconsider its proposal and demanding a new Impact Assessment that considers the new situation. Mid-December, the Council adopted a formal decision asking the Commission to improve its impact assessment within a maximum period of 6 months.

The Commission also advanced ideas on the Carbon certification dossier, specifying that this certification will be granted to farms that put into practice activities that have neutral or positive impact on the environment, create a net gain in CO2 presence in the atmosphere, are additional, aim to be long-term, and are monitored.

Over the month of December, animal welfare standards have been discussed at the EU level. The EU ministers informally find an agreement on the fact that if higher standards will be applied to animals raised in the EU, so will the ones be coming from third countries (‘mirror clauses’). To set the basis for the revision of the EU legislation on the matter, the Commission presented an evaluation of the current law, concluding that the current set-up does not allow to meet current and future needs.

December also marked a provisional institutional agreement over deforestation law. Once adopted and applied, the new law will ensure that a set of key goods placed on the EU market will no longer contribute to deforestation and forest degradation.

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NEW GENOMIC TECHNIQUES: UK AS A FRONTRUNNER FOR NEW LEGISLATION

While at the European Parliament the political group of the Greens hosted the ‘GM-free Europe’ event where policy makers and stakeholders from national and NGO organisations expressed worries around the possibility to a deregulation of ‘new GMOs’, the Commissioner for Health replied to the chair of the AGRI Committee saying that new technologies could be a way to help the implementation of the Farm to Fork objectives on pesticide reduction.  Meanwhile, Presidents of several agricultural value chain organisation addressed a letter to the European Executives on the matter of NGTs, arguing for a timely adoption of the revision proposal and defending the positive aspects that these techniques will have for sustainability standards.

In the UK, concrete steps have been made towards the approval of a new legislation.

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LIVESTOCK IN THE EU – CLOSE TO A PROPOSAL FOR ORIGIN LABEL

Key issues affecting the EU livestock sectors:

Avian flu cases are soaring across Europe. More than 48 million birds have died in the past year in the UK and the EU. EU farmers may no longer have to remove the free-range label from their eggs in the event of an extended mandatory housing order.

Impact of the opening of the EU market to Ukrainian poultry production. The lifting of tariffs and the suspension of quotas on Ukrainian agricultural products, including Ukrainian poultry for a year, has led to a surge in Ukrainian poultry imports into the EU. The European Commission has said it could re-impose duties if EU producers face serious difficulties.

A German parliamentary group has called for the animal welfare label to be applied to products from other EU Member States and third countries.

The Commission may present a proposal for EU-wide origin labelling early next year.

In Germany, piggeries should be converted to improve animal welfare.  This could result in a reduction of the pig population.

Germany tightens animal transport rules and calls for EU-wide monitoring. Germany will also tighten rules on antibiotics for livestock.

According to the European Food Safety Authorityanimal transport times should be shortened to reduce the risk of antibiotic-resistant germs.

The European Commission published in November a Communication on “Ensuring the availability and affordability of fertilisers”. The text sets out long-term objectives for Europe and the rest of the world.

MEPs call for initiative on mental health in agriculture 

Members of the European Parliament’s Agriculture Committee have called for concerted efforts to support the mental health of EU farmers as pressures mount on the already strained sector.

The European Parliament has called for a downgrading of the protection status of wolves in the EU to help protect the livestock sector. 

This resolution could put political pressure on the European Commission to re-evaluate its approach to the management of wolf populations.

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FARM TO FORK NEWSLETTER: THE FERTILIZERS HEADACHE

In the midst of the price and energy crisis and the impact of the Russian-Ukrainian war on the food market, the Commission is about to publish a communication on fertilizers (on November 9th). According to some rumors, the Commission will call on national capitals to ensure supplies of gas for fertilizers manufacturers, and encourage to use the agricultural crisis reserve. At the same time, coming from the latest Council meeting, most of the 27 ministers of agriculture agreed on the importance of manure-made fertilizers and asked for legal flexibilities on the current nitrate legislation.

On animal welfare, while EFSA published some guidelines on the welfare of animals on transportation, stressing that transport should be short and that deep cleaning of the vehicle should be done, the German minister for agriculture is proposing a bill for a mandatory animal welfare label which might cause market distortion issues, critics argue.The European Commission, on the same topic, published an overview of the achievements and challenges of the current Animal welfare legislation, concluding that the current setting has improved the welfare of many EU animals including their protection during transport and slaughter.

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LIVESTOCK IN THE EU – A DECLINING MEAT AND DAIRY PRODUCTION

The European Commission’s short-term outlook – Autumn 2022 edition – shows that production of meat and dairy products in the European Union is expected to decline this year, and the following one.

Persistently high feed costs and African swine fever (ASF) continue to limit the growth of EU pigmeat production.

Beef production is expected to decline by -0.6% in 2022, mainly due to structural adjustment in the beef and dairy sector, despite high prices.

New records in Europe of Highly Pathogenic Avian Influenza (HPAI), and a persistent virus in wild birds continue to impact the poultry sector.

Signs of declining livestock production warn of limited supplies which could exacerbate the high food inflation in Europe. The historic drought has reduced the availability of grass and feed (especially maize), thereby increasing costs for farms, which are also faced with soaring energy and fertiliser prices.

In view of a review of animal welfare legislation the Commission has published a “Fitness Check” which gives an overview of the achievements and challenges of current animal welfare legislation.

The European Scientific Committee of the Nutri-score has published an update of the algorithm which is supposed to be more “consistent” and “aligned” with nutritional and public health recommendations. These changes propose a more severe rating for certain foods, including meat.

The European Parliament voted in mid-September to extend the list of agricultural products covered by the future new anti-deforestation law to include maize, poultry and pork.

According to the World Climate Report, methane emissions are overestimated, with cattle producing 3 to 4 times less carbon dioxide than assumed.

The Swiss initiative “No to intensive livestock farming in Switzerland” was rejected by 63%.

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NUTRITION & HEALTH : EU label legislation postponed

As the expectations around the Commission’s proposal about a EU-wide nutritional labelling systems are getting higher, many events are being organized around this topic. However, the Commission seems that it will postpone this legislative initiative at a later stage of 2023 considering the ‘complexity’ of the issue and the fact that more time is needed for the EU executive to take a final position on the matter. At the same time, Italian researchers have proposed another label to be displayed on food products, the ‘Med Index’, that would promote those products that are in line with the Mediterranean diet and with its principles of sustainability (i.e., nutritional, environmental, and social).

In the meantime, traditional and nature-sourced food products are being challenged by the development of lab-grown protein industry, with start-up in the field raising capitals to open new production facilities to scale up, expand their offer, and the geographical location. In this context, a study analyzed consumers’ openness to lab-grown dairy (through precision fermentation) and found that the overall safety concerns as well as questions about the technical process of production were frequently underlined. However, only few individuals within the early adoption group expressed opposition to the products while the majority of the people interviewed were ‘on the fence’ as to whether they would consider trying the product.

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NEW GENOMIC TECHNIQUES: PATHS OPEN TO NEW LEGISLATION, SUPPORT AND RISK ASSESMENTS

Outside the EU, states like Kenya and Ukraine open up to the possibility to have a more flexible legislation around genetic engineering techniques. Within the EU, the French organization for biotechnology pushes for a stronger use of new genomic techniques to assure food security and face the climate challenges. At the same time, EFSA developed some criteria on risk assessment for plants produced by targeted mutagenesis, cisgenesis and intregenesis.

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