Forests play a key role in the fight against climate change. They represent a significant natural carbon reservoir, regulate the water regime of the landscape, support biodiversity and stabilize the soil. In recent years, project methodologies such as VM0044 (biochar) have come to the fore., VM0045 (improved forest management), VM0047 (afforestation and reforestation) and VM0048 (reducing emissions from deforestation and forest degradation – REDD type of projects). But how do these methodologies fit into the legislative framework of the European Union?

Global Mechanism Linkage REDD+, project methodologies of the organization Vera and legislation European Union (EU) represents a complex system where international climate law meets with specific market mechanisms and European regulations. While global mechanisms focus on financial incentives, the EU relies primarily on a system of mandatory accounting and strict regulation.

Here is a systematic overview of how these elements connect:

1. REDD+: A global mechanism under the UN

REDD+ (Reducing Emissions from Deforestation and Forest Degradation) is a UN instrument (enshrined in Article 5 of the Paris Agreement) that aims to create a financial value for the carbon stored in the forests of developing countries.

• Principle: It is about result-oriented mechanism, where countries receive payments for demonstrated emission reductions compared to a reference level (baseline).
• Relationship to the EU: The EU supports this mechanism politically and financially externally, but does not integrate it directly into its internal system meeting climate targets (e.g. through the EU ETS).

2. European legislative framework

The EU addresses emissions from forests and land through three main pillars, which operate in parallel with global mechanisms:

• LULUCF (Regulation 2018/841): The basis of European carbon accounting. Unlike the project-based approach of REDD+, LULUCF operates at the level of state accounting. Member States must ensure that emissions in this sector do not exceed removals (the "no-debit" rule) and collectively achieve a target of 310 million tonnes of CO₂ removed by 2030.
• EUDR (Deforestation Regulation): A regulatory instrument that prohibits the placing on the EU market of commodities (timber, coffee, soy, etc.) associated with deforestation. It does not address carbon credits, but the cause of the problem – demand for products causing forest degradation.
• CRCF (Regulation 2024/3012): New certification framework for carbon removal and carbon agriculture. Sets out uniform rules QUALITY (Quantification, Additionality, Long-term storage, Sustainability) for verification of removals in the EU.

3. Verra Forest Methodologies and Their Relationship to the EU

The voluntary Verra methodologies are relevant in the EU primarily within the framework of voluntary market and the new CRCF framework:

• VM0044 (Biochar): It focuses on the permanent storage of carbon through pyrolysis. In the EU, this type of activity is a key part of the CRCF, where technical rules for assessing the permanence of storage are currently being prepared.
• VM0045 (Improved forest management): It uses dynamic baseline scenarios similar to LULUCF, but generates project credits. However, the EU prefers national balances over project credits for its binding targets.
• VM0047 (Reforestation and restoration): These activities are fully included in LULUCF in the EU, with the CRCF allowing their certification as biological removals.
• VM0048 (REDD+ projects): Verra's new methodology for reducing emissions from deforestation. Although globally important, The EU does not recognize REDD+ credits for fulfilling obligations in the EU ETS system.

4. Strategic connection and differences

The key point of connection is the question of where and how these mechanisms can be used:

The European climate framework currently relies on regulation and transparency instead of directly integrating external REDD+ credits into its commitment system. The bridge between global methodologies (such as those from Verra) and European legislation is becoming CRCF regulation, which brings rigorous scientific standards to the certification of removals. The future may bring greater linkage, especially if the EU allows the use of certified removals (e.g. from biochar or afforestation) to offset residual emissions in industry after 2040. JRi&CO2AI