Carbon Reduction Activities in Europe: May 2025

Executive Summary: Recent developments in Europe’s carbon reduction strategies highlight a significant focus on enhancing carbon dioxide removal capabilities and supporting the automotive sector’s transition to lower emissions. The European Union is advancing its regulatory framework to ensure robust carbon removal certification and is providing flexibility measures for car manufacturers to meet emission targets. These initiatives are part of a broader effort to achieve climate neutrality by 2050.

Introduction

Between May 5, 2025, and May 11, 2025, several key initiatives and regulatory updates were announced in Europe, focusing on carbon reduction and climate action. These developments are part of the European Union’s ongoing efforts to meet its climate targets and support the transition to a low-carbon economy.

Carbon Dioxide Removal Certification Framework

The European Union has introduced a new Carbon Removal Certification Framework aimed at standardizing carbon removal activities across the region. This framework, established under Regulation (EU) 2024/3012, seeks to enhance the credibility and transparency of carbon removal efforts, supporting the EU’s climate neutrality goals by 2050. The framework targets three primary activities: geological storage of CO2, carbon farming, and carbon storage in products. Certification under this framework is voluntary and requires compliance with quality criteria, which will be verified by independent third parties. The regulation aims to prevent greenwashing and ensure environmental integrity in carbon removal processes.

Source: Jones Day

Flexibility Measures for Car Manufacturers

The European Parliament has adopted flexibility measures for car manufacturers to help them meet CO2 emission targets. The new regulation allows manufacturers to average their emissions performance over a three-year period (2025-2027) rather than being assessed annually. This approach provides carmakers with the flexibility to balance excess emissions in one year by outperforming in subsequent years. The measure is intended to support the automotive sector, which is facing rapid technological changes and increased competition.

Source: European Parliament News

Scaling Up Carbon Dioxide Removals

The European Scientific Advisory Board on Climate Change has released a report emphasizing the need to scale up carbon dioxide removals alongside deep emissions cuts. The report recommends setting separate legal targets for emissions and removals, increasing innovation funding, and ensuring robust monitoring to manage risks. The Advisory Board also suggests integrating permanent removals into the EU Emissions Trading System and recognizing an ‘extended emitter responsibility’ to contribute to future greenhouse gas removals.

Source: EU Climate Advisory Board

Conclusion

The recent announcements in Europe reflect a comprehensive approach to carbon reduction, focusing on both regulatory frameworks and industry support. By enhancing carbon removal capabilities and providing flexibility to the automotive sector, the EU aims to accelerate its transition to a sustainable and competitive low-carbon economy.