EU Proposes Integrating Carbon Removals into ETS, Excludes Nature-Based Solutions

The European Commission's COM (2026) 616 proposal aims to integrate carbon removals into the EU Emissions Trading System (ETS), limited to permanent, domestic removals certified under the Carbon Removal Certification Framework (CRCF) — including direct air capture with carbon storage (DACCS), bioenergy with carbon capture and storage (BECCS) and biochar — totaling approximately 250 Mt, to be gradually incorporated during 2031-2040 with corresponding cap adjustments. From 2036 onward, up to 260 million tonnes of international credits could be procured through a dedicated mechanism, sourced from high-integrity international credits under the European Climate Law. The International Emissions Trading Association (IETA) criticized the plan for excluding nature-based removals, arguing that a mix of engineered and nature-based solutions is needed to accelerate scaling of the removals sector and support EU climate goals.

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