European Parliament Committees Move Forward with Amendments to the Net-Zero Industry Act and Carbon Removal Certification Framework
28th October 2023
Amendments to the Net-Zero Industry Act (NZIA) and Carbon Removal Certification Framework (CRCF) have both been approved by responsible European Parliament Committees.
On 24th October 2023, the Environment, Public Health and Food Safety (ENVI) Committee approved changes to the European Commission’s Proposal for Regulation Establishing a Union Certification Framework for Carbon Removals which aims to provide assurance around the quality and governance of carbon removals. Under their amendments, ENVI lawmakers tackled potential issues tied to double counting of carbon credits and sought to establish a clear distinction between permanent removals and short-term sequestration activities. Having a trustworthy certification system is important as carbon removals could ultimately be integrated into the EU ETS. The European Commission will explore this eventuality in a report to be submitted by 2026.
The Net Zero Industry Act (NZIA) is also one step closer in the EU decision-making process following a vote of approval by the ITRE (Industry, Research and Energy) Committee on 25 October. The proposed regulation will seek to scale up net-zero strategic technologies that will drive decarbonisation while strengthening EU competitiveness, including carbon capture and storage. While Committee members endorsed the CO2 injection target of 50 million tonnes per year in the EU by 2030, they took this opportunity to also clarify .the role of depleted fields and saline aquifers along with the need for CO2 transport infrastructure. Further, they broadened the storage obligation to all entities selling crude oil, petroleum products or natural gas in the Union, digressing from the initial proposal by the European Commission focusing on authorised oil and gas producers.
Following the changes made by the responsible committees, both the NZIA and the CRCF will be taken to the European Parliament’s plenary in November 2023.