Navigating EU’s climate policy frameworks: the role of BCR in reaching net-zero
At Carbo Culture, we’re committed to reversing climate change through Biochar Carbon Removal (BCR). As the European Union forges ahead with ambitious climate targets, the role of Carbon Dioxide Removal (CDR) is becoming increasingly vital within EU’s climate policy. In this blog post, we explore the EU’s evolving carbon markets and how BCR, a scalable and permanent CDR method, is poised to play a key role in achieving a net-zero future.
Reaching the EU’s Climate Neutrality goal by 2050 and curbing emissions globally is a brave task. The latest climate action progress report by the European Commission states that net greenhouse gas emissions are now 37% below 1990 levels and the energy sector has halved its emissions since 2005. The European Scientific Advisory Board on Climate Change has said that the EU should reach a 90% emissions reduction target in 2040, which the EU is still negotiating. In addition, the IPCC has highlighted we need up to 10Gt of carbon removal, including permanent carbon removals like BCR, Biological Carbon Capture and Storage (Bio-CCS), Direct Air Carbon Capture and Storage (DACCS) and Enhanced Rock Weathering (ERW) to name a few. But how can CDR be harnessed to reach the scale and speed the IPCC demands?
What is EU ETS?
When it comes to carbon markets and especially carbon pricing, the European Union is leading the way. Globally, we still see over 80 different prices for carbon emissions, but the EU has managed to create an EU-wide compliance market under its Emissions Trading Scheme, EU ETS. The EU ETS is the world’s first carbon market, launched in 2005 and it is one of the largest globally. It operates as a carbon pricing instrument that limits or caps the allowed amount of GHG emissions and lets market forces disclose the carbon price through emitters trading emissions allowances. It currently includes carbon dioxide emissions from industries like electricity and heat generation, energy-intensive industry sectors like oil, steel and iron manufacturing, pulp and paper as well as aviation and maritime transport.
The EU ETS forms a major pillar of EU energy policy and a path to climate neutrality by 2050. Its market size is around 880 billion euros, and there are discussions of expanding its scope to include more industries, such as agriculture. In addition, under current EU legislation, EU ETS auctions should end by 2039 as part of the EU’s broader climate neutrality goals by 2050. This would mean that no new emission allowances would be issued after 2039. This has sparked discussions about the future of the EU ETS.
Will Permanent Carbon Removal be added under the EU ETS?
One of the main discussions has been about incorporating carbon removal credits into the EU ETS system. In this instance, industries would not pay for a right to emit but for removing the emissions. The European Commission is currently drafting a report on how they envisage this could be done, even by 2030. The Commission is expected to consider adding only the Permanent Carbon Removal category. It currently hosts methodologies for BCR, Bio-CCS, and DACCS to allow for the fungibility of CDR credits in price and permanence. However, the specific instrument is still under debate. The EU undertook a mission to certify carbon removals under their EU Carbon Removals and Carbon Farming Certification Regulation (CRCF) which divides removals into three categories
- Carbon Farming
- Carbon Stored in Products and
- Permanent Carbon Removal.
Biochar’s permanence, scalability, and co-benefits make it a compliance-grade carbon removal technology
Biochar has a unique value in long-term carbon sequestration due to its permanence, scalability, and co-benefits. Unlike other carbon removal methods that risk re-releasing CO₂ into the atmosphere over time, biochar offers durable sequestration with a reliable and tested MRV framework (monitoring, reporting and verification). In industrially produced biochar the carbon is in a stable form that remains locked for centuries to millennia. Hence, it is one of the most reliable long-term carbon storage solutions. This permanence aligns with regulatory frameworks and corporate carbon accounting standards that prioritise durable removals over temporary offsets. Biochar production can be deployed across diverse feedstocks and geographies, allowing for expansion. This scalability ensures that biochar can help industries and governments meet climate targets.
Beyond carbon removal, biochar delivers co-benefits that enhance its value as a CDR solution. It is a high-quality, climate-neutral growing media raw material. Moreover, when applied to agricultural land, biochar is a powerful soil improver. These multifunctional benefits make biochar an attractive solution not only for carbon removal but also for climate adaptation and sustainable agriculture.
BCR can play a key role in contributing to negative emissions under LULUCF
Additional possibilities for Biochar Carbon Removal are on the horizon. In addition to the EU ETS, the EU’s Land Use, Land-Use Change, and Forestry (LULUCF) regulation mandates that EU member states ensure that their land-use sector does not emit more carbon than it removes. In 2024, the Danish Government published a Pyrolysis Strategy, which shows its commitment to using Biochar Carbon Removal to meet its climate targets, especially in the LULUCF sector. Due to its dual benefits of carbon sequestration and improving soil health biochar has a lot of potential to become a verifiable carbon sink under LULUCF frameworks.
BCR can remove emissions under the ESR
The Effort Sharing Regulation (ESR) covers sectors not included in the EU ETS, such as transport, buildings, and agriculture, and requires companies to reduce their emissions. Sustainable fuels, such as biofuels, often have lifecycle emissions that can be offset through carbon removal solutions like BCR. Contact us, and we can demonstrate how biochar can offset hard-to-abate lifecycle emissions!
BCR can accelerate Europe’s path towards the net-zero
The likely inclusion of carbon removals in the EU ETS and the development of the CRCF registry signal a clear policy direction. The EU is actively preparing for a carbon-neutral future where CDR plays a crucial role. While the exact timeline and implementation details are still evolving, the direction is clear. Biochar, with its proven permanence, scalability, and co-benefits, is well-positioned to become a cornerstone of the EU’s carbon removal strategy. At Carbo Culture, we’re excited to be part of this transformative journey. We remain committed to scaling biochar carbon removal, supporting the development of carbon markets, and collaborating with policymakers and industry leaders to accelerate Europe’s path towards a net-zero future.
