More from the EU… Reuters reports that the EU is questioning effectiveness of nature-based carbon sequestration and developing contingencies for potential shortfalls.
“The European Union is considering a brake clause to weaken its 2040 climate target in the future, if it becomes clear countries’ forests are not absorbing enough CO2 emissions to meet the goal, a draft EU compromise proposal showed…
Countries’ latest draft negotiating compromise, seen by Reuters on Sunday, added a new clause that said if forests and other land-based activities that absorb CO2 emissions fall short, the EU will be allowed to propose ‘an adjustment of the 2040 intermediate target corresponding to and within the limits of the possible shortfalls’…
The move echoes a proposal made by France last week, previously reported by Reuters, which had demanded an ’emergency brake’ to reduce the 90% emissions target by 3%, if forests and the land-use sector underdeliver.
The amount of CO2 absorbed by Europe’s forests and land-use sector dropped by nearly a third in the last decade, because of factors including wildfires and unsustainable forest management.”
While such an action would impact sovereign carbon targets rather than corporate plans/requirements, there are two important considerations for companies if this moves forward:
- Permitted or otherwise allowable emissions from operations in countries that implement an “emergency brake” would likely see reductions in their emissions authorizations, meaning higher costs or throttling back operations when the brake is engaged; and
- It signals weakening faith by policymakers in nature-based removals that may also be reflected in regulation development and corporate emissions limits.
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