A Roadmap for Sustainable Biomass Sourcing and the EU CRCF
November marked a significant milestone in Europe’s journey toward achieving net-zero emissions. The European Union officially approved the Carbon Removal and Carbon Farming Regulation (EU CRCF), introducing the first EU-wide framework for certifying activities that either permanently or temporarily remove carbon dioxide from the atmosphere.
This voluntary framework represents a step forward for the development of high-quality carbon dioxide removal (CDR) solutions, particularly in encouraging robust and transparent reporting standards.
However, its implementation raises several questions. What methods will be eligible? Will existing voluntary carbon market (VCM) standard bodies be approved? How will the price of EU CRCF certified units vary? The list goes on. One of interest to us, what biomass feedstocks will be eligible for durable CDR? And subsequently, what biomass CDR projects will be CRCF eligible?
Addressing the Challenge of a Growing Biomass Demand
The demand for biomass is increasing across multiple industries, from energy and products to CDR. This growth necessitates clear definitions of waste biomass and prioritisation of its use across industries. These definitions and criteria for biomass vary significantly by geography, adding complexity to project eligibility across a carbon market which operates globally.
Understanding the CRCF’s Biomass Criteria
The CRCF is expected to align with biomass sustainability criteria outlined in Article 29 of the EU’s Renewable Energy Directive (RED III). This criteria places restrictions on biomass use based on its type, supply chain, use cases, and potential biodiversity value. The framework prioritises sustainable sourcing as a means to facilitate environmental integrity.
The Implications for Buyers
For buyers, sustainable biomass sourcing will be a critical factor in determining compliance with the CRCF. It’s important to note that biomass projects operating outside the EU may adhere to different regulations and sustainability criteria. These discrepancies could render such projects ineligible for CRCF certification, creating potential risks for buyers with a strategic focus on CRCF-aligned CDR.
Understanding the nuances of these criteria and their implications for regional market eligibility is essential for effective due diligence.
Scaling Biomass Removals: No One-Size-Fits-All Solution
Biomass regulations and project eligibility under compliance mechanisms vary widely. As the market for biomass CDR grows, navigating these complexities becomes increasingly important. Buyers must weigh the risks and opportunities associated with sustainable biomass sourcing, recognising that there is no universal approach.
Our Roadmap for Sustainable Biomass Sourcing
At ClimeFi, we’ve delved into these intricacies in our latest report, Demystifying Biomass Carbon Dioxide Removals. This comprehensive analysis provides a roadmap for sustainable biomass sourcing, helping organisations better understand and manage risks associated with CDR projects.
If your organisation prioritises CRCF compliance or aims to mitigate risks associated with sustainable biomass sourcing, we invite you to explore our insights.