Commission Implementing Regulation (EU) 2022/996 of 14 June 2022 on rules to verify sustainability and greenhouse gas emissions saving criteria and low indirect land-use change-risk criteria (Text with EEA relevance)

COMMISSION IMPLEMENTING REGULATION (EU) 2022/996 of 14 June 2022 on rules to verify sustainability and greenhouse gas emissions saving criteria and low indirect land-use change-risk criteria (Text with EEA relevance)

CHAPTER I

INTRODUCTION

Article 1

Subject matter

This Regulation lays down implementing rules to ensure that it is verified in an efficient and harmonised manner that economic operators:

(a) comply with the sustainability criteria set in Article 29(2) to (7) of Directive (EU) 2018/2001;

(b) provide accurate data on greenhouse gas emission savings for the purposes of Article 25(2) and Article 29(10) of Directive (EU) 2018/2001;

(c) comply with the criteria for certification of low ILUC-risk biofuels, bioliquids and biomass fuels established by Delegated Regulation (EU) 2019/807.

Article 2

Definitions

For the purposes of this Regulation, the following definitions apply:

(1) ‘voluntary scheme’ means an organisation that certifies the compliance of economic operators with criteria and rules including, but not limited to, the sustainability and greenhouse gas saving criteria set out in Directive (EU) 2018/2001 and in Delegated Regulation (EU) 2019/807;

(2) ‘recognised voluntary scheme’ means a voluntary scheme recognised pursuant to Article 30(4) of Directive (EU) 2018/2001;

(3) ‘recognised national scheme’ means a national scheme recognised pursuant to with Article 30(6) of Directive (EU) 2018/2001;

(4) ‘certificate’ means a conformity statement by a certification body within the framework of a voluntary scheme, certifying that an economic operator complies with the requirements of Directive (EU) 2018/2001;

(5) ‘suspended certificate’ means a certificate temporarily invalidated due to non-conformities identified by the certification body or upon voluntary request of the economic operator;

(6) ‘withdrawn certificate’ means a certificate that has been permanently cancelled by the certification body or the voluntary scheme;

(7) ‘terminated certificate’ means a certification that has been voluntarily cancelled while it is still valid;

(8) ‘expired certificate’ means a certificate that is no longer valid;

(9) ‘sustainability and greenhouse gas emissions saving characteristics’ means the set of information describing a consignment of raw material or fuel that is required for demonstrating compliance of that consignment with the sustainability and greenhouse gas emissions saving criteria for biofuels, bioliquids and biomass fuels or the greenhouse gas emission savings requirements applicable for renewable liquid and gaseous transport fuels of non-biological origin and recycled carbon fuels;

(10) ‘mix of raw material for the purpose of further processing’ means the physical mixing of raw material for the sole purpose of producing biofuels, bioliquids or biomass fuels;

(11) ‘economic operator’ means a producer of raw material, a collector of waste and residues, an operator of installations processing raw material into final fuels or intermediate products, an operator of installations producing energy (electricity, heating or cooling) or any other operator, including of storage facilities or traders that are in physical possession of raw material or fuels, provided that they process information on the sustainability and greenhouse gas emissions saving characteristics of those raw materials or fuels;

(12) ‘first gathering point’ means a storage or processing facility managed directly by an economic operator or other counterpart under contractual agreement that is sourcing raw material directly from producers of agricultural biomass, forest biomass, wastes and residues or, in the case of renewable fuels of non-biological origin, the plant producing such fuels;

(13) ‘certification audit’ means an initial audit before participation in a scheme, with the purpose of issuing a certificate under a voluntary scheme;

(14) ‘certification body’ means an independent accredited conformity assessment body that concludes an agreement with a voluntary or national scheme recognised by the European Commission in accordance with Article 30(4)-(6) of Directive (EU) 2018/2001, to provide certification services for raw materials or fuels by carrying out audits of economic operators and issuing certificates on behalf of the voluntary or national schemes using the voluntary or national scheme’s certification system;

(15) ‘non-conformity’ means non-compliance of an economic operator or certification body with the rules and procedures, established by the voluntary scheme, of which they are members or under which they operate;

(16) ‘surveillance audit’ means any follow up audit of certificates issued by a certification body within the framework of a voluntary scheme after certification and before a re-certification audit, which can be carried out quarterly, half-annually or annually;

(17) ‘re-certification audit’ means an audit with the purpose of renewing a certificate issued by a certification body within the framework of a voluntary scheme;

(18) ‘interconnected infrastructure’ means a system of infrastructures, including pipelines, LNG terminals and storage facilities, which transports gases, that primarily consist of methane and include biogas and gas from biomass, in particular biomethane, or other types of gas that can technically and safely be injected into, and transported through the natural gas pipeline system, hydrogen systems as well as pipeline networks and transmission or distribution infrastructures for liquid fuels;

(19) ‘hydrogen system’ means a system of infrastructure, including hydrogen networks, hydrogen storage, and hydrogen terminals, which contains hydrogen of a high grade of purity;

(20) ‘legal predecessors’ means an economic operator that has been legally replaced by a new one, but no substantive changes or only superficial ones have been made regarding its ownership, management composition, working methods or scope of activity;

(21) ‘product group’ means raw materials, biofuels, bioliquids, non-gaseous biomass fuels with similar physical and chemical characteristics and similar heating values or gaseous biomass fuels, and LNG with similar chemical characteristics that all are subject to the same rules set out in Articles 7, 26 and 27 of Directive (EU) 2018/2001 for determining the contribution of biofuels, bioliquids and biomass fuels towards achieving the targets for renewable energy;

(22) ‘site’ means a geographical location, logistical facilities, transmission or distribution infrastructures with precise boundaries within which products can be mixed;

(23) ‘proof of sustainability’ means a declaration by an economic operator, made on the basis of a certificate issued by a certification body within the framework of a voluntary scheme certifying the compliance of a specific quantity of feedstock or fuels with the sustainability and greenhouse gas emissions savings criteria set out in Articles 25(2) and 29 of Directive (EU) 2018/2001;

(24) ‘raw material’ means substances that have not yet been processed into fuels including intermediate products;

(25) ‘fuels’ means fuels that are ready to be supplied for consumption, including biofuels, bioliquids, biomass fuels, renewable liquid and gaseous transport fuels of non-biological origin and recycled carbon fuels;

(26) ‘financial attractiveness test’ means the calculation of the Net Present Value (NVP) of an investment, based on additionality measures in the context of low ILUC-risk biomass certification;

(27) ‘non-financial barrier test’ means an assessment of the potential other barriers that are expected to prevent an economic operator from implementing additionality measures in the context of low ILUC-risk biomass certification;

(28) ‘Union database’ means the database provided for in Article 28, point 2 of Directive (EU) 2018/2001;

(29) ‘grassland’ has the meaning attributed to it in Article 1, point (1) of Commission Regulation (EU) No 1307/2014 (¹).

CHAPTER II

GENERAL RULES ON GOVERNANCE, INTERNAL MONITORING, COMPLAINTS PROCEDURES AND TRANSPARENCY OF VOLUNTARY SCHEMES

Article 3

Governance structure of the voluntary scheme

Article 4

Non-conformities of economic operators under the scheme

Article 5

Internal monitoring, complaints procedure and documentation management system

Voluntary schemes shall establish procedures for the lodging of complaints against economic operators or certification bodies. The complaints procedure shall be accessible on the voluntary scheme’s website and allow complaints to be sent electronically or by post. The complaints procedure shall also ensure the protection of persons who report infringements or lodge complainants in good faith in accordance with Directive (EU) 2019/1937 of the European Parliament and of the Council (²). The website shall indicate at least all of the following information:

(a) the information and the evidence to be provided to file a complaint, as well as the postal address or email address to which it is to be sent;

(b) guidance on which complaints are within the scope of the procedure;

(c) a step-by-step overview of how complaints are handled, from the receipt of the initial complaint through to resolution, and the associated timeframe for each step;

(d) the decision-making process for complaints and the process for appealing decisions;

(e) the consequences of the voluntary scheme finding a non-conformity as result of a complaint.

Voluntary schemes and certification bodies shall establish a documentation management system that addresses each of the following elements:

(a) general management system documentation (e.g. manuals, policies, definition of responsibilities);

(b) control of documents and records;

(c) management review of management system;

(d) internal auditing/internal monitoring;

(e) procedures for identification and management of non-conformities; and

(f) procedures for taking preventive actions to eliminate the causes of potential non-conformities.

Documentation shall be kept for a minimum of 5 years, or longer if required by the relevant national authority.

Article 6

Publication of information by voluntary schemes

Voluntary schemes shall make the following information publicly and freely available on a website:

(a) their governance structure, describing the roles of all relevant bodies, details on the ownership structure, composition and experience of the Board of Directors, Secretariat and Technical committee, or equivalent, as well as the list of members with voting rights or participants in the scheme, as appropriate;

(b) the list of economic operators participating in the scheme, their certification status, with their respective date of certificate issuance, suspension, withdrawal, termination or expiry, as well as the certificates or the summary audit reports drawn up in accordance with Annex II. Where audits identify critical or major non-conformities, voluntary schemes shall publish an aggregated list of these non-conformities together with a respective action plan and timing for their correction as agreed with the economic operators concerned. Specific information on the certificates or summary audit reports may be redacted to comply with personal data protection legislation. Economic operators whose certificates are withdrawn, terminated or expired shall be listed on the website for at least 24 months after the withdrawal, termination or expiration date. Changes in the certification status of economic operators shall be made public without delay;

(c) the latest version of their scheme documentation and the guidelines for audits. The documents shall include a date and version number and, where applicable, summarise any changes made compared to the previous document version;

(d) the contact details of the scheme, including telephone number, email address and correspondence address;

(e) the list of certification bodies carrying out independent auditing under the scheme, indicating for each certification body which national public authority or entity accredited or recognised it and which entity or national public authority of the Member State supervises it, in accordance with Article 30(9), second subparagraph, of Directive (EU) 2018/2001. Certification bodies that are no longer entitled to conduct independent auditing under the scheme shall be listed for at least 12 months after the last audit with an indication to that effect;

(f) the results of the annual monitoring activities of the voluntary scheme as summarised in the annual activity report.

Article 7

Change of scheme by economic operators

Voluntary schemes shall require economic operators to disclose the following information in their applications for certification:

(a) whether they or their legal predecessor are currently participating in another voluntary scheme or have participated in another voluntary scheme in the last 5 years;

(b) all relevant information, including the mass balance data and the auditing reports and, where applicable, any decisions to suspend or withdraw their certificates in the last 5 years;

(c) whether they withdrew from a scheme before the first surveillance audit.

Voluntary schemes shall exclude from the scheme economic operators in the following cases:

(a) they do not disclose the information in paragraph 1, point (a) and point (b);

(b) they or their legal predecessor failed the initial audit under another scheme, unless such initial audit took place more than 3 years before the application or if in the meantime the other scheme ceased its certification activities, which prevented the economic operator for reapplying. Where a voluntary scheme accepts the justification of the economic operators and decides to assess their application, the scope of the initial audit shall be adjusted to cover all relevant issues and specifically focus on the shortcomings identified in the initial audit that they failed in the other scheme;

(c) they or their legal predecessor withdrew from another scheme before the first surveillance audit took place, unless the operator can prove that it had a valid reason for doing so. Where a voluntary scheme accepts the justification provided by the economic operator, the scope of the initial audit shall be adjusted to cover all relevant issues of the surveillance audit.

Article 8

Recognition of other voluntary schemes

Where part of the supply chain relies on other voluntary schemes, they shall accept evidence of voluntary schemes recognised in accordance with Article 30(4) of Directive (EU) 2018/2001, only to the extent of the scope of their recognition.

Article 9

Recognition of national schemes

Voluntary schemes shall not refuse recognition of recognised national schemes as regards the verification of compliance with the sustainability and GHG emissions saving criteria set out in Article 29(2) to (7) and (10) of Directive (EU) 2018/2001, with the GHG savings thresholds set out in Article 25(2) of that Directive and with the criteria for certification of low ILUC-risk biofuels, bioliquids and biomass fuels set out in Delegated Regulation (EU) 2019/807.

CHAPTER III

AUDIT PROCESS, AUDIT SCOPE, QUALIFICATIONS OF AUDITORS AND AUDIT SUPERVISION

Article 10

Audit process and levels of assurance

Voluntary schemes may authorise a certification body to perform the verification of compliance with different certification frameworks during the same auditing process, as long as the certification body certifies that economic operators satisfy the requirements in line with Article 1. Voluntary schemes that allow a certificate duration longer than one year shall ensure the carrying out of an annual surveillance audit of all economic operators participating in the scheme. However, in the case of group audits, the annual audit may cover a sample of the group members in accordance with Article 12. The frequency of surveillance audits shall be increased on the basis of the level of overall risk related to the profile of the economic operator, the supply chain and the results of previous audits. The technical reviewer shall be responsible for validating the results of surveillance audits.

Voluntary schemes shall establish detailed procedures setting out how audits are planned and conducted and how audit reports are drawn up. Voluntary schemes shall ensure that certification bodies conduct audits in accordance with ISO 19011 or the equivalent. Voluntary schemes shall also ensure an efficient and timely exchange of audit information between them to support the effective preparation and conduct of the audit. The audit shall include at least the following elements:

(a) identification of the activities undertaken by the economic operator which are relevant to the scheme’s criteria;

(b) identification of the relevant systems of the economic operator and its overall organisation with respect to the scheme’s criteria and checks of the effective implementation of relevant control systems;

(c) analysis of the risks which could lead to a material misstatement, based on the auditor’s professional knowledge and the information submitted by the economic operator. That analysis shall take into consideration the overall risk profile of the activities, depending on the level of risk of the economic operator and the supply chain, above all at the immediately upstream and downstream stages, for example, for economic operators that handle material listed in Annex IX. The audit intensity or scope, or both, shall be adapted to the level of overall risk identified, also based on plausibility checks of the production capacity of a plant and the declared quantities of produced fuels;

(d) a verification plan which corresponds to the risk analysis and the scope and complexity of the economic operator’s activities, and which defines the sampling methods to be used with respect to that operator’s activities;

(e) implementation of the verification plan by gathering evidence in accordance with the defined sampling methods, plus all relevant additional evidence, upon which the verifier’s conclusion will be based;

(f) a request to the operator for the provision of any missing elements of audit trails, an explanation of variations, or the revision of claims or calculations, before reaching a final verification conclusion;

(g) verification of the accuracy of data recorded by the economic operators or their representatives in the Union database.

The intentional violation of a voluntary scheme’s standards such as fraud, irreversible non-conformity, or a violation that jeopardies the integrity of the voluntary scheme shall be considered to be a critical non-conformity. Critical non-conformities shall include, but are not limited to, the following:

(a) non-compliance with a mandatory requirement of Directive (EU) 2018/2001, such as land conversion which contravenes Article 29(3), (4) and (5) of that Directive;

(b) fraudulent issuance of a proof of sustainability or self-declarations, for example, intentional duplication of a proof of sustainability to seek financial benefit;

(c) deliberate misstatement of raw material description, falsification of GHG values or input data as well as the deliberate production of wastes or residues, for example, the deliberate modification of a production process to produce additional residue material, or the deliberate contamination of a material with the intention of classifying it as a waste.

Failure to comply with a mandatory requirement of Directive (EU) 2018/2001, where the non-conformity is potentially reversible, repeated and reveals systematic problems, or aspects that alone, or in combination with further non-conformities, may result in a fundamental system failure, shall be considered to be a major non-conformity. Major non-conformities shall include, but are not limited to, the following:

(a) systematic problems with mass balance or GHG data reported for example, incorrect documentation is identified in more than 10 % of the claims included in the representative sample;

(b) the omission of an economic operator to declare its participation in other voluntary schemes during the certification process;

(c) failure to provide relevant information to auditors for example, mass balance data and audit reports.

A non-conformity that has a limited impact, constitutes an isolated or temporary lapse, is not systematic and does not result in a fundamental failure if not corrected, shall be considered to be a minor non-conformity.

The consequences of non-conformities for economic operators shall be the following:

(a) in the case of critical non-conformities, economic operators applying for certification shall not be issued a certificate. Economic operators may re-apply for certification after the lapse of a fixed period of time, determined by the voluntary scheme. Critical non-conformities identified during surveillance or re-certification audits, or through a voluntary scheme’s internal monitoring or complaints process, shall lead to the immediate withdrawal of the economic operator’s certificate;

(b) in the case of major non-conformities, economic operators applying for certification shall not be issued a certificate. Major non-conformities identified during surveillance or re-certification audits, or through a voluntary scheme’s internal monitoring or complaints process, shall lead to the immediate suspension of the economic operator’s certificate. Where economic operators do not provide a remedy for any major non-conformities within 90 days from notification, the certificate shall be withdrawn;

(c) in the case of minor non-conformities, voluntary schemes may define the time period for their resolution, not exceeding 12 months from their notification and the date of next surveillance or re-certification audit.

Voluntary schemes shall only certify economic operators where they comply with all the following requirements:

(a) have a documentation management system;

(b) have an auditable system for safekeeping and reviewing all evidence related to the claims they make or rely on;

(c) keep all evidence necessary to comply with this Regulation and Directive (EU) 2018/2001 for a minimum of 5 years, or longer where it is required by the relevant national authority;

(d) accept responsibility for preparing any information related to the auditing of such evidence.

Article 11

Requirements for certification bodies and their auditors

When a certification body conducts verification activities, either with its internal resources or with other resources under its direct control, it shall also meet the applicable requirements of EN ISO/IEC 17029 and EN ISO 14065. The certification body shall only use other resources for verification activities from accredited bodies that meet the applicable requirements of EN ISO/IEC 17029 and EN ISO 14065.

The accreditation of a certification body shall be conducted by a national accreditation body in accordance with Regulation (EC) No 765/2008 and shall cover the specific scope of certification of the voluntary or national scheme within the scope of Directive (EU) 2018/2001.

As part of the assessment of voluntary or national schemes in accordance with Article 30(4), (5) and (6) of Directive (EU) 2018/2001, the Commission shall also assess, after consulting the European cooperation for Accreditation, if the methodologies, rules, and protocols of the voluntary or national schemes are suitable for accreditation for the purposes of this Article. The conclusion of the assessment of the voluntary and national schemes’ suitability for accreditation shall be included in the technical assessment reports, prepared by the Commission and presented to the Member States as part of the voluntary and national schemes recognition process in accordance with Article 30(4) and (6) of Directive (EU) 2018/2001.

The methodologies, rules and protocols of the voluntary and national schemes that have been recognised by the Commission before or on 24 February 2025 shall be assessed by the Commission by 31 December 2025, after consulting the European cooperation for Accreditation, to ensure that they are suitable for accreditation in accordance with this paragraph.

Auditors shall:

(a) be independent of the activity being audited, except for audits concerning Article 29(6), point (a), and Article 29(7), point (a) of Directive (EU) 2018/2001, for which first or second party auditing may be carried out up to the first gathering point;

(b) be free from conflict of interest;

(c) have the specific skills necessary for conducting the audit related to the scheme’s criteria, including: (i) for land-use criteria laid down in Article 29, points (2) to (9) of Directive (EU) 2018/2001 as well as the low ILUC risk certification methodology set in Chapter V and Annex VIII of this implementing regulation: experience in agriculture, agronomy, ecology, natural science, forestry, silviculture or a related field, including specific technical skills needed to verify compliance with the highly biodiverse grasslands and highly biodiverse forest criteria; (ii) for GHG emissions saving criteria laid down in Article 29(10) of Directive (EU) 2018/2001 or when determining the GHG emissions of recycled carbon fuels and renewable fuels of non-biological origin in accordance with the methodology set out in Article 28(5) of Directive (EU) 2018/2001: a minimum of 2 years’ experience in fuel life-cycle assessment, and specific experience in auditing GHG emission calculations in accordance with the methodology set out in Annexes V and VI to Directive (EU) 2018/2001, that is relevant for the type of audits to be conducted by the individual auditor. Depending on the specific scope of the audit, that experience shall be complemented by experience in agriculture, agronomy, ecology, forestry, natural science, silviculture, engineering, energy management or a related field. Where the scope of the audit includes verifying soil organic carbon levels, for the purpose of applying the emission saving credit for soil carbon accumulation, technical knowledge on soil science shall also be required; (iii) for the chain of custody criteria laid down in Article 30, points (1) to (2) of Directive (EU) 2018/2001: experience in mass balance systems, supply chain logistics, bookkeeping, traceability, and data handling or a related field; (iv) for group auditing: experience in conducting group audits.

Article 12

Group auditing

Voluntary schemes may perform group auditing only in the following cases:

(a) for producers of raw material, in particular smallholders, producer organisations and cooperatives as well as waste collectors;

(b) for compliance with the scheme’s land-related criteria, where the areas concerned are in proximity and have similar characteristics, such as climatic or soil conditions;

(c) for the purpose of calculating GHG savings, where the units have similar production systems and types of crops.

Economic operators included in a group audit shall designate a group manager. First gathering points, producer organisations or cooperatives, may also act as group managers, representing the economic operators included in the group audit.

Group auditing may carry out verification for all units concerned on the basis of sample of units. Voluntary schemes shall set out guidelines on the implementation of a group auditing approach, including at least the following elements:

(a) role of the group manager, covering specifications for the internal management system and internal group inspection procedures;

(b) determination of sample size.

Article 13

Auditing of waste and residues

Article 14

Auditing of actual GHG emission calculations

Auditors shall verify that the estimate of emissions saving from capture and replacement of CO2 is limited to emissions avoided through the capture of CO2 of which the carbon originates from biomass and which is used to replace fossil-derived CO2. That verification requires access to the following information:

(a) the purpose for which the captured CO2 is used;

(b) the origin of the CO2 that is replaced;

(c) the origin of the CO2 that is captured;

(d) information on emissions due to capturing and processing of CO2.

For the purposes of point (b), economic operators using captured CO2 may state how the CO2 that is replaced was previously generated and declare, in writing, that emissions equivalent to that quantity are avoided as a consequence of the replacement. That evidence shall be considered sufficient to verify compliance with the requirements of Directive (EU) 2018/2001 and the avoidance of emissions.

Article 15

Audits of mass balance systems

Voluntary schemes shall ensure that economic operators provide auditors with all mass balance data in advance of the audit.

During the initial audit, carried out before an economic operator is allowed to participate in a scheme, the auditor shall check the existence and functioning of the mass balance system.

During subsequent annual audits, the auditor shall check at least the following elements:

(a) list of all sites, that are under the scope of certification. Each site shall have its own mass balance records;

(b) list of all inputs per site and the description of material handled and details of all suppliers;

(c) list of all outputs per site and the description of material handled and details of all customers;

(d) conversion factors applied, in particular in the case of installations processing waste or residues to ensure that the process is not modified to produce more waste or residue material;

(e) any discrepancies between book keeping system and inputs, outputs and balances;

(f) allocation of sustainability characteristics;

(g) equivalence of the sustainability data and the physical stock at the end of the mass balance period.

Article 16

Auditing of natural and non-natural highly-biodiverse grassland

Economic operators shall provide evidence that the harvesting of the raw material is necessary to preserve the highly biodiverse grassland status and that management practices do not present a risk of causing biodiversity decline of the grassland.

Where economic operators are unable to provide the evidence referred to in the second subparagraph, they shall provide evidence that they have been granted permission by the relevant competent authority, or designated agency, to harvest the raw material in order to preserve the highly biodiverse grassland status.

The technical assessment of the land shall be conducted by a qualified specialist who is external and independent of the activity being audited and free from conflict of interest, and who may be part of the audit team. The assessment and its result shall be reviewed as part of the audit.

Article 17

Supervision by the Member States and the Commission

Voluntary schemes shall require economic operators participating in the scheme as well as certification bodies conducting audits under the scheme to cooperate with the Commission and the competent authorities of the Member States, including granting access to the premises of economic operators where requested as well as making available to the Commission and the competent authorities of the Member States all information needed to fulfil their tasks under Directive (EU) 2018/2001. For those purposes, certification bodies shall also be required to:

(a) provide the information needed by Member States to supervise the operation of certification bodies pursuant to Article 30(9) of Directive (EU) 2018/2001;

(b) provide the information required by the Commission to comply with Article 30(10) of Directive (EU) 2018/2001;

(c) verify the accuracy of information entered into the Union database or relevant national database pursuant to Article 28(4) of Directive (EU) 2018/2001.

Voluntary schemes shall notify the Commission without delay, about all substantial changes to the content of the scheme that might affect the basis for the recognition of the scheme. Such changes may include any of the following:

(a) changes to the mandatory sustainability criteria covered by the scheme;

(b) extension of the scope of the scheme beyond what is described in the Implementing act, recognising the scheme;

(c) extension of the scope of feedstock or biofuels referred to in the original scheme documents where the risk profile of added feedstock differs, for example, with the inclusion of wastes or residues, or where specific procedures are applied;

(d) changes to the mass balance rules;

(e) changes to auditing procedures or requirements for auditors;

(f) changes in, or extension of the GHG calculation methodology;

(g) any other change that could be considered to affect the basis for the recognition of the scheme.

CHAPTER IV

SPECIFIC RULES ON THE IMPLEMENTATION OF THE MASS BALANCE SYSTEM, THE UNION DATABASE AND THE ESTABLISHMENT OF GHG EMISSIONS AND BIOLOGICAL FRACTION OF FUELS

Article 18

Traceability and Union database

Article 19

Implementation of the mass balance system

Voluntary schemes shall apply the following rules in the implementation of the mass balance system:

(a) raw material or fuels shall only be considered to be part of a mixture if they are mixed in a container, at a processing or logistical facility, or at a transmission and distribution infrastructure or site;

(b) different raw materials shall only be considered to be part of a mixture if they belong to the same product group, except where the raw material is mixed for the purpose of further processing;

(c) raw materials or fuels shall only be considered to be part of a mixture if they are physically mixed unless they are physically identical or belong to the same product group. Where raw materials or fuels are physically identical or belong to the same product group, they must be stored in the same interconnected infrastructure, processing or logistical facility, transmission and distribution infrastructure or site;

(d) fuels introduced into a logistical facility or a transmission or distribution infrastructure such as the gas grid or a pipeline network for liquid fuels, stored in LNG or other storage facilities shall only be considered to be part of a mixture pursuant to point (c) where that infrastructure is interconnected;

(e) economic operators shall be required to keep separate mass balances for raw materials and fuels which cannot be considered part of a mixture. Transfer of information about the sustainability and GHG emissions saving characteristics and sizes between different mass balances shall not be allowed. Pursuant to subparagraphs (a) to (c), raw materials inside biofuels, bioliquids or biomass fuels production facilities are considered to be part of a mixture. Therefore, the requirement to keep separate mass balances shall not apply to such facilities and a single mass balance can be kept;

(f) the mass balance system shall include information about the sustainability and the GHG emissions characteristics and quantities of raw material and fuels, including information about the quantities of raw material and fuels for which no sustainability or GHG characteristics have been determined;

(g) where a consignment of raw material or fuel is delivered to an economic operator that is not participating in a voluntary scheme or national scheme, the delivery shall be reflected in the mass balance by withdrawing an equivalent quantity of raw material or fuel. The type of fuel to be booked out shall correspond to the physical nature of the raw material or fuel delivered;

(h) where a consignment of fuel is used to comply with an obligation placed on a fuel supplier by a Member State, it shall be considered to be withdrawn from the mixture of the mass balance;

(i) where biofuels, bioliquids or biomass fuels are blended with fossil fuels, the information about the sustainability and GHG emissions saving characteristics assigned to the blend shall correspond to the physical share of the biofuel, bioliquids or biomass fuels in the blend. For biofuels and bioliquids, Member States may further check the veracity of this information in accordance with Article 23;

(j) the sustainability and GHG emissions saving characteristics of a consignment of raw material or fuel shall be considered as a set. Where consignments are withdrawn from a mixture, any of the sets of sustainability characteristics may be assigned to them provided that the sets of sustainability and GHG emissions saving characteristics are not split and the mass balance is achieved over the appropriate period of time;

(k) where relevant for transparency reasons, the mass balance system shall include information on whether support has been provided for the production of the fuel or fuel precursor, and if so, the type of support;

(l) the appropriate period of time for achieving the mass balance shall be 12 months for producers of agricultural biomass and forest biomass and first gathering points sourcing only agricultural biomass and forest biomass, and 3 months for all other economic operators. The start and end of the period shall be aligned with the calendar year or, where applicable, the four quarters of the calendar year. As alternatives to the calendar year, economic operators may also use either the economic year that they use for bookkeeping purposes or another starting point for the mass balance period, provided that the choice is clearly indicated and applied consistently. At the end of the mass balance period, the sustainability data carried forward should be equivalent to the physical stock in the container, processing or logistical facility, transmission and distribution infrastructure or site;

(m) voluntary schemes shall specify the minimum set of sustainability and GHG emissions saving characteristics, in accordance with Annex I, that need to be passed down the supply chain as well as other information necessary to trace the consignments. In case of liquid or gaseous fuels introduced into an interconnected infrastructure and subject to the same mass balancing system, the respective sustainability and GHG emissions saving characteristics shall be assigned to the consignments entering and exiting the interconnected infrastructure. The voluntary schemes shall also ensure that economic operators correctly enter all relevant information in the Union database.

Article 20

Determining the GHG emissions of biofuels, biomass fuels and bioliquids

For the purpose of determining the GHG emissions of biofuels, bioliquids and biomass fuels referred to in paragraph 1, the following specific rules shall apply:

(a) in taking into account the GHG emissions of inputs, where standard values of emission factors are used, the ones set out in Annex IX shall be applied;

(b) in determining the emissions from the extraction or cultivation of raw material, the methodology set out in Annex VII shall be applied;

(c) in determining the emission savings from soil carbon accumulation via improved agricultural management (esca), the methodology set out in Annex V shall be applied.

Article 21

Specific rules for waste and residues

Article 22

Specific rules for recycled carbon fuels and renewable fuels of non-biological origin

Voluntary schemes shall require economic operators participating in the scheme to apply the methodology set out in Article 28(5) of Directive (EU) 2018/2001 when determining the GHG emissions of recycled carbon fuels and renewable fuels of non-biological origin.

Article 23

Specific rules for co-processing

CHAPTER V

SPECIFIC RULES ON COMPLIANCE WITH THE REQUIREMENTS ON LOW ILUC-RISK CERTIFICATION

Article 24

Specific requirements for low ILUC-risk certification

Where two or more additionality measures are applied at different times on the same delineated plot of land, the economic operator may choose either of the following options:

(a) update the dynamic yield baseline and the additionality test to create a new baseline valid for another 10 years;

(b) keep the original validity period of 10 years for the dynamic yield baseline and the additionality test following the initial certification year.

Article 25

Specific requirements for proving additionality

Article 26

Production on unused, abandoned or severely degraded land

For land to qualify as abandoned land, the economic operator shall provide additional evidence that food or feed crops were once grown on the delineated area before the consecutive period referred to in paragraph 1. That evidence shall also prove that the production ceased for biophysical or socioeconomic reasons.

Biophysical changes which adversely affect the growing of food and feed crops may include, but are not limited to, the following events:

(a) an increased frequency of severe weather events such as droughts, storms or floods;

(b) changes in seasonal temperature patterns which affect plant phenology;

(c) increased pests and diseases;

(d) damage to irrigation systems;

(e) damage to soil such as severe salinisation, depletion of organic matter and erosion rendering them ‘severely degraded’.

Socioeconomic factors adversely affecting the economic viability of production, leading to the abandonment of the land may include, but are not limited to, the following events:

(a) changes in market prices: (for example increased input or labour costs, or both, or reductions in the price fetched by finished crops);

(b) labour becoming unavailable (for example as a result of migration);

(c) failure of the supply chain (for example through the closure of a local market or a transport link);

(d) disputes about ownership (for example in the context of inheritance);

(e) political instability (for example confiscation or nationalization of the land).

An application for the certification of feedstock as having been produced on severely degraded land, as defined in part C, point (9) of Annex V to Directive (EU) 2018/2001, shall be accompanied by the following soil test results, as applicable:

(a) in the case of salinisation, the results of testing by a qualified agronomist of the electroconductivity of the soil using the saturated paste method;

(b) in the case of low soil organic matter, results from an appropriate number of samples of soil from the delineated plot, determined by a qualified agronomist, using the dry combustion method;

(c) in the case of severe erosion, at least 25 % of the delineated plot shall have been eroded as determined by a qualified agronomist, supported by photographs.

Article 27

Determining additional biomass for yield increase measures

CHAPTER VI

FINAL PROVISIONS

Article 28

Entry into force and application

This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union.

It shall apply from 18 months after its entry into force.

Article 11 (1) shall apply as of 1 January 2027.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

ANNEX I

1.Data to be transmitted through the whole supply chain

(a) name of the voluntary or national scheme;

(b) proof of sustainability number;

(c) sustainability and GHG emission savings characteristics, including: (i) statement on whether the raw material or fuel complies with the criteria set out in Article 29(2) to (7) of Directive (EU) 2018/2001; (ii) GHG emission data calculated according to the methodology set out in Annexes V and VI to Directive (EU) 2018/2001 or Delegated Regulation (EU) 2019/807; (iii) description of when the installation started operation (for fuels only);

(d) name of raw material or name of raw material that the fuel is produced from;

(e) waste or animal by-product permit number (if applicable);

(f) fuel type (for fuels only);

(g) country of origin of raw material;

(h) country of fuel production;

(i) statement on whether the raw material or fuel complies with the criteria set out for low indirect land-use change-risk biofuels;

(j) information on whether support has been provided for the production of that consignment, and if so, the type of support scheme.

2.Transaction data

(a) supplier company name and address;

(b) buyer company name and address;

(c) date of (physical) loading;

(d) place of (physical) loading or logistical facility or distribution infrastructure entry point;

(e) place of (physical) delivery or logistical facility or distribution infrastructure exit point;

(f) volume: For fuels, the energy quantity of the fuel must also be included. For the calculation of the energy quantity, conversion factors in Annex III to Directive (EU) 2018/2001 must be used.

ANNEX II

A. Minimum content of the audit report

1.With regard to the economic operator:

(a) contact details of main certified entity (company name and address, details of the designated point of contact);

(b) scope of certification;

(c) longitude and latitude coordinates (for farms and plantations certified as single entities);

(d) area of certification (for first gathering points, or individually certified farms and plantations);

(e) estimated amount of sustainable material that could be harvested annually (for agricultural and forestry supply chains);

(f) estimated amount of sustainable material that could be collected annually (for waste and residue collection points);

(g) list of sites under the scope of certification (name and address);

(h) input/output materials (physically) handled by the certified sites – classifications must be in conformity with the requirements set out in Annex IX to Directive (EU) 2018/2001;

(i) estimated amount of sustainable input material used annually (producers of the final product only);

(j) estimated amount of sustainable final product that could be produced annually (producers of the final product only).

2.With regard to the certification body:

(a) contact details (name and address) and logo;

(b) composition of the audit team;

(c) accrediting body and scope and date of accreditation.

3.With regard to the audit process:

(a) date of audit;

(b) audit itinerary and duration (split by duration spent on-site and remotely – where relevant);

(c) scheme standards audited/certified (including version number);

(d) sites audited;

(e) audit method (risk assessment and sampling basis, stakeholder consultation);

(f) certification of other voluntary schemes or standards;

(g) GHG data type (default, NUTS2 or actual values – including information on the application of GHG emission savings factors).

4.With regard to the audit results:

(a) place and date of issuance;

(b) list of non-conformities identified.

B. Minimum content of the summary audit report or certificate

1.With regard to the economic operator:

(a) contact details of main certified entity (company name and address, details of the designated point of contact);

(b) scope of certification;

(c) longitude and latitude coordinates (for farms and plantations certified as single entities);

(d) optional for first gathering points, points of origin, traders with storage: list of sites under the scope of certification (name and address);

(e) input/output materials (physically) handled by the certified sites – classifications must be in conformity with the requirements set out in Annex IX to Directive (EU) 2018/2001 (for traders with/without storage, the type of material traded).

2.With regard to the certification body: contact details (name and address) and logo

3.With regard to the audit process:

(a) date of audit;

(b) scheme standards audited/certified (including version number);

(c) sites audited;

(d) GHG data type (default, NUTS2 or actual values – including information on the application of GHG emission savings factors).

4.With regard to the audit results:

(a) the (unique) certificate number or code;

(b) place and date of issuance;

(c) list of non-conformities identified;

(d) certificate valid from/to dates (and date certified if applicable);

(e) stamp and/or signature of issuing party.

ANNEX III

Voluntary schemes must report the following information in their annual activity reports to the Commission:

(a) rules on the independence, method and frequency of audits as approved by the Commission upon accreditation of the voluntary scheme and any changes to them over time to reflect Commission guidance, the modified regulatory framework, findings from internal monitoring on the auditing process of certification bodies and evolving industry best practice.

(b) rules and procedures for identifying and dealing with non-compliance by economic operators and members of the scheme.

(c) evidence of fulfilling the legal requirements on transparency and publication of information in line with Article 6.

(d) stakeholder involvement, in particular on the consultation of indigenous and local communities prior to decision-making during the drafting and review of the scheme as well as during audits and the response to their contributions.

(e) overview of the activities carried out by the voluntary scheme in cooperation with the certification bodies in order to improve the overall certification process and the qualification and independence of auditors and relevant scheme bodies.

(f) market updates of the scheme, the amount of feedstock, biofuels, bioliquids, biomass fuels, recycled carbon fuels and renewable fuels of non-biological origin all certified, by country of origin and type, and the number of participants.

(g) overview of the effectiveness of the implementing system put in place by the governance body of the voluntary scheme in order to track proof of conformity with the sustainability criteria that the scheme gives to its member(s). This shall cover, in particular, how the system effectively prevents fraudulent activities by ensuring timely detection, treatment and follow-up of suspected fraud and other irregularities and where appropriate, the number of cases of fraud or irregularities detected.

(h) criteria for the recognition of certification bodies.

(i) rules on how the internal monitoring system is conducted and the results of its periodic review, specifically on oversight of the work of certification bodies and their auditors as well as on the system of handling complaints against economic operators and certification bodies;

(j) possibilities to facilitate or improve the promotion of best practices.

(k) voluntary schemes certifying forest biomass must include information on the way the risk assessment required in Article 29(6) and (7) of the Directive (EU) 2018/2001 is made.

ANNEX IV

The substances listed in this annex shall be considered as falling under a category of raw material set out in Annex IX to Directive (EU) 2018/2001 without being explicitly mentioned. The list is not comprehensive and complements the existing list of materials in Annex IX to Directive (EU) 2018/2001.

Category in Annex IX to Directive (EU) 2018/2001	Feedstock sub-category/examples
Annex IX Part A d)	Drink waste
Annex IX Part A d)	Fruit/vegetable residues and waste (Only tails, leaves, stalks and husks)
Annex IX Part A d)	Bean shells, silverskin, and dust: cocoa, coffee
Annex IX Part A p)	Shells/husks and derivatives:, soy hulls
Annex IX Part A d)	Residues and waste from production of hot beverages: spent coffee grounds, spent tea leaves
Annex IX Part A d)	Dairy waste scum
Annex IX Part A d)	Food waste oil: oil extracted from waste food from industry
Annex IX Part A d)	Non-edible cereal residues and waste from grain milling and processing: wheat, corn, barley, rice
Annex IX Part A d)	Olive oil extraction residues and waste: olive stones
Annex IX Part A p)	Agricultural harvesting residues
Annex IX Part A q)	Palm fronds, palm trunk
Annex IX Part A q)	Damaged trees
Annex IX Part A p)	Unused feed/fodder from ley
Annex IX Part B b)	Waste fish oil classified as categories 1 and 2 in accordance with Regulation (EC) No 1069/2009.
Annex IX Part A d)	Other slaughterhouse waste (Animal residues (non-fat) Cat 1)
Annex IX Part A d)	Industrial wastewater and derivatives
Annex IX Part A g)	Palm sludge oil (PSO)
Annex IX Part A d)	Industrial storage settlings
Annex IX Part A d)	Biogenic fraction of end-of-life tyres
Annex IX Part A q)	Recycled/waste wood
Annex IX Part A d)	Humins
Annex IX Part A d)	Spent bleaching earth

ANNEX V

Economic operators seeking to claim emission savings from soil carbon accumulation via improved agricultural management (esca) in terms of g CO2eq/MJ should use the following formula to calculate their actual values:

Where:

CSR is the mass of soil carbon stock per unit area associated with the reference crop management practice in Mg of C per ha.

CSA is the mass of soil estimated carbon stock per unit area associated with the actual crop management practices after at least 10 years of application in Mg of C per ha.

3,664 is the quotient obtained by dividing the molecular weight of CO2 (44,010 g/mol) by the molecular weight of carbon (12,011 g/mol) in g CO2eq/g C.

n is the period (in years) of the cultivation of the crop considered.

P is the productivity of the crop (measured as MJ biofuel or bioliquid energy per ha per year).

ef emissions from the increased fertilisers or herbicide use

Improved agriculture management practices, accepted for the purpose of achieving emission savings from soil carbon accumulation, include shifting to reduced or zero-tillage, improved crop/rotation, the use of cover crops, including crop residue management, and the use of organic soil improver (e.g. compost, manure fermentation, digestate, biochar, etc.).

The calculation of the actual values of CSR and CSA shall be based on measurements of soil carbon stocks. The measurement of CSR shall be carried out at farm level before the management practice changes in order to establish a baseline, and then the CSA shall be measured at regular intervals no later than 5 years apart.

The entire area for which the soil carbon stocks are calculated shall have a similar climate and soil type as well as similar management history in terms of tillage and carbon input to soil. If the improved management practices are only applied to part of the farm, the GHG emissions savings can only be claimed for the area covered by them. If different improved management practices are applied on a single farm, a claim of GHG emission savings shall be calculated and claimed individually for each esca practice.

To ensure reduced year-to-year fluctuations in the measured soil carbon stocks and to reduce associated errors, fields that have the same soil and climate characteristics, similar management history in terms of tillage and carbon input to soil and that will be subject to the same improved management practice may be grouped, including those fields belonging to different farmers.

After the first measurement of the baseline, the increase in soil carbon can be estimated based on representative experiments or soil models, before a second measurement of the increase in carbon stock is made. From the second measurement onwards, the measurements shall constitute the ultimate basis for determining the actual values of the increase in soil carbon stock.

However, after the second measurement, modelling to enable economic operators to estimate the annual increase in soil carbon stocks may only be permitted until the next measurement if the models used have been calibrated, based on the real values measured. Economic operators shall be obliged to use only models that have been validated by voluntary schemes. Voluntary schemes shall be obliged to inform the economic operators and the certification bodies, performing audits on their behalf, about the models that they have validated for such use.

The models used shall take into account the different soil, climate and field management history to simulate carbon dynamics in soil. The voluntary scheme shall be obliged to prepare a detailed report, presenting the validated modelling method used and its underlying assumptions. The related final actual values that are established based on the soil measurement results, shall be used to adjust the annual claims of emissions savings from soil carbon accumulation via agricultural management (esca), made on the basis of modelling.

To claim emissions savings from soil carbon accumulation via agricultural management (esca), measurements of soil carbon stocks shall be performed by certified laboratories and samples shall be retained for a period of at least 5 years for auditing purposes.

A long-term commitment by the farmer or economic operator to continue applying the improved management practice for a minimum of 10 years shall be required by voluntary schemes in order for GHG emission savings to be taken into account. Such commitment may be implemented as a 5-years renewable commitment.

Failure to meet this criterion will lead to all esca values of the current year for the farmer or economic operator being added as emissions to the overall GHG emissions of the energy crop delivered, instead of being deducted as a GHG emission savings and a prohibition to include an esca value in the GHG calculations for 5 years, whatever the certification scheme used. If a commitment has been signed in the name of an economic operator on behalf of several farmers and one of these farmers withdraws early, the above-mentioned penalties shall apply only to the farmer concerned and not to all the commitments of the economic operator. The voluntary scheme that has issued the certificate shall be obliged to enforce the penalties and dully inform all other voluntary schemes as well as to publish this information on its website and included it in the annual activity reports to be sent to the Commission.

In addition, a continuous minimum period of 3 years for the application of the improved management practice shall be required before a claim can be made.

The maximum possible total value of the annual claim of emission savings from soil carbon accumulation due to improved agricultural management (esca) shall be capped to 45 g CO2eq/MJ biofuel or bioliquid for the entire period of application of the Esca practices, if biochar is used as organic soil improver alone or in combination with other eligible esca practices. In all other cases, the cap referred to above shall be 25 g CO2eq/MJ biofuel or bioliquid for the entire period of application of the esca practices.

Primary producers or economic operators, who are already engaged in eligible esca practices and have made respective Esca claims before the entry into force of this Implementing regulation, may apply a cap of 45 g CO2eq/MJ biofuel or bioliquid in a transition period until the first measurement of the carbon stock increase is made at the 5th year. In such a case, the measured carbon stock increase at the 5th year will become a cap for the annual claims to be made in the following period of 5 years. If the first measurement of the carbon stock increase at the 5th year shows higher total annual carbon stock increase, compared to the annual claims made, the annual difference can be claimed by primary producers or economic operators in subsequent years to compensate for lower carbon stock increases. Respectively, if the first measurement of the carbon stock increase at the 5th year shows lower total annual soil carbon stock increase, compared to the annual claims made, the annual difference has to be deducted accordingly by farmers or economic operators from their claims in the subsequent 5 years.

If the application of eligible improved agricultural management practices (esca) started in the past but no previous Esca claims were made, annual retroactive Esca claims can be made but for no longer than 3 years prior to the moment of esca certification. The economic operator shall be obliged to provide adequate evidence about the start of the application of the improved farming practices. In such a case, the estimate of the CSR value can be based on a comparative measurement of a neighbouring or other field with similar climatic and soil conditions as well as similar field management history. If there is no available data from such a field, the CSRestimated value can be based on modelling. In that case, a first measurement shall be done immediately, at the moment of commitment. The next measurement of carbon stock increase will have to be made 5 years later.

The increased emissions resulting from the increased fertilisers or herbicide use due to the application of improved agricultural practices, shall be considered. For this purpose, adequate evidence shall be provided on the historic use of fertilisers or herbicide that shall be counted as the average for the 3 years before the application of the new agricultural practices. The contribution of nitrogen fixation crops used to reduce the need for additional fertilisers can be considered in the calculations.

The following rules shall be applied to sampling:

(a) sampling shall be made for each plot or field; (b) at least one grab sample of 15 well distributed sub-samples per every 5 hectares or per field, whichever is smaller (taking into account the heterogeneity of the plot’s carbon content), shall be taken; (c) smaller fields with same climatic conditions, soil type, reference farming practice, and esca practice can be grouped; (d) sampling shall be done either in spring before soil cultivation and fertilisation or in autumn, a minimum of 2 months after harvest; (e) direct measurements of soil carbon stock changes shall be taken for the first 30 cm of soil; (f) the points of the initial sampling to measure the baseline of soil carbon stocks shall be used under identical field conditions (especially soil moisture); (g) The sampling protocol shall be well documented.

(a) soil samples shall be dried, sieved, and if necessary grounded; (b) if the combustion method is used, inorganic carbon shall be excluded.

(a) changes in bulk density over time shall be taken into account; (b) bulk density should be measured using the tapping method, that is to say by mechanically tapping a cylinder into the soil, which greatly reduces any errors associated with bulk density measurement; (c) if the tapping method is not possible, especially with sandy soils, a reliable method shall be used instead; (d) samples should be oven-dried prior to weighing.

The application of the above methodology on esca and the calculation of the actual GHG emissions values shall be duly verified by certification bodies and documented in audit reports. Voluntary schemes are obliged to issue detailed guidance on the application of this methodology, including on their validated soil models to economic operators and certification bodies as well as to support their auditors in their verification tasks. Voluntary schemes shall be also obliged to include detailed statistical information and qualitative feedback on the implementation of the esca methodology in their annual activity reports to be submitted to the Commission.

The Commission shall duly monitor the implementation of the esca methodology as part of its monitoring of the activities of the voluntary schemes covering inter alia:

— Project implementation which should allow for, amongst others, evaluating the relation of modelling results against field measurements;

— Comparing claims and results against estimates of SOC saturation to derive criteria and recommendations and possibly requirements for long term maintenance of a given equilibrium to secure results in the long term;

— Derive recommendations and requirements for an appropriate model selection and calibration as well as reliable indicators to model results.

The Commission may revise the methodological approach described in this annex as well as the caps applied to annual claims of carbon stock accumulation, based on the outcomes of this monitoring or with the aim to align it with evolving knowledge or with new legislation in this area in the future (i.e. EU carbon farming initiative).

ANNEX VI

Requirement	Soil quality parameter
At least a 3-crop rotation, including legumes or green manure in the cropping system, taking into account the agronomic crop succession requirements specific to each crops grown and climatic conditions. A multi-species cover crop between cash crops counts as one.	Promoting soil fertility, soil carbon, limiting soil erosion, soil biodiversity and promoting pathogen control
Sowing of cover/catch/intermediary crops using a locally appropriate species mixture with at least one legume. Crop management practices should ensure minimum soil cover to avoid bare soil in periods that are most sensitive.	Promoting soil fertility, soil carbon retention, avoiding soil erosion, soil biodiversity
Prevent soil compaction (frequency and timing of field operations should be planned to avoid traffic on wet soil; tillage operation should be avoided or greatly reduced on wet soils; controlled traffic planning can be used).	Retention of soil structure, avoiding soil erosion, retaining soil biodiversity
No burning of arable stubble except where the authority has granted an exemption for plant health reasons.	Soil carbon retention, resource efficiency
On acidic soils where liming is applied, where soils are degraded and where acidification impacts crop productivity.	Improved soil structure, soil biodiversity, soil carbon
Reduce tillage/no tillage – Erosion control – addition of organic amendments (biochar, compost, manure, crop residues) – use of cover crops, rewetting Revegetation: planting (species change, protection with straw mulch) – landscape features – agroforestry	Increase soil organic carbon
Monitoring approach	Method of verification/demonstration
---	---
Risk assessment	Identifying areas with high risk of soil quality decline helps prevent these risks and focus on areas with the greatest impact.
Soil organic matter analysis	Consistent sampling of soil organic matter improves monitoring so that this matter can be maintained or improved.
Soil organic carbon analysis	Soil organic carbon is seen as a good marker for wider soil quality.
Soil conditioning index sampling	A positive value indicates the system is expected to have increasing soil organic matter.
Soil erosion assessment	Ensures that erosion is below a tolerable level, e.g. USDA Agricultural Research Service ‘t’ levels.
Nutrient management plan	A plan outlining nutrient strategy (focusing mostly on N, P, K) and fertiliser regimes can prevent nutrient imbalances.
Regular soil pH analysis	Monitoring pH helps identify imbalances in pH.

ANNEX VII

To calculate the emissions from the extraction or cultivation of raw materials Part C, point 5 of Annex V and Part B, point 5 of Annex VI to Directive (EU) 2018/2001 state that the calculation shall include the sum of all emissions from the extraction or cultivation process itself; from the collection, drying and storage of raw materials; from waste and leakages; and from the production of chemicals or products used in extraction or cultivation.

The capture of CO2 in the cultivation of raw materials shall be excluded. Estimates of emissions from agriculture biomass cultivation may be derived from the use of regional averages for cultivation emissions included in the reports referred to in Article 31(4) of Directive (EU) 2018/2001 or the information on the disaggregated default values for cultivation emissions included in this Annex, as an alternative to using actual values. In the absence of relevant information in those reports, averages can be calculated based on local farming practices, for instance on data of a group of farms, as an alternative to using actual values.

EMISSIONS FROM THE EXTRACTION OR CULTIVATION PROCESS ITSELF

The emissions from the extraction or cultivation process itself shall include all emissions from (i) the provision of the fuels for farm machinery used; (ii) the production of seeding material for crop cultivation; (iii) the production of fertilisers and pesticides; (iv) fertiliser acidification and liming application; and (v) soil emissions from crop cultivation.

1.1.   Fuel use (diesel oil, gasoline, heavy fuel oil, biofuels or other fuels) for farm machinery

The GHG emissions from crop cultivation (field preparation, seeding, fertiliser and pesticide application, harvesting, collection) shall include all emissions from the use of fuels (such as diesel oil, gasoline, heavy fuel oil, biofuels or other fuels) in farm machinery. The amount of fuel use in farm machinery shall be duly documented. Appropriate emission factors of the fuels must be used in accordance with Annex IX. Where biofuels are used, the default GHG emissions set out in Directive (EU) 2018/2001 must be used.

1.2.   Chemical fertilisers and pesticides

The emissions from the use of chemical fertilisers and pesticides (⁴) for the cultivation of raw materials shall include all related emissions from the manufacture of chemical fertilisers and pesticides. The amount of the chemical fertilisers and pesticides, depending on the crop, local conditions and farming practices, shall be duly documented. Appropriate emission factors, including upstream emissions, must be used to account for the emissions from the production of chemical fertilisers and pesticides pursuant to Annex IX. If the economic operator knows the factory producing the fertiliser and it falls under the EU Emissions Trading System (ETS), then the economic operator can use the production emissions declared under ETS, adding the upstream emissions for natural gas etc. Transport of the fertilisers shall also be included, using the emissions from transport modes listed in Annex IX. If the economic operator does not know the factory supplying the fertiliser, it should use the standard values provided for in Annex IX.

1.3.   Seeding material

The calculation of cultivation emissions from the production of seeding material for crop cultivation shall be based on actual data on the seeding material used. Emission factors for the production and supply of seeding material can be used to account for emissions associated with the production of seeds. The standard values for emission factors set out in Annex IX must be used. For other seeds, literature values from the following hierarchy must be used.

(a) version 5 of JEC-WTW report;

(b) ECOINVENT database;

(c) ‘official’ sources, such as Intergovernmental Panel on Climate Change (IPCC), International Energy Agency (IEA) or governments;

(d) other reviewed sources of data, such as E3 database, GEMIS database;

(e) peer-reviewed publications;

(f) duly documented own estimates.

1.4.   Emissions from fertiliser acidification and liming application

The emissions from the neutralisation of fertiliser acidification and application of aglime shall account for the CO2 emissions from neutralisation of acidity from nitrogen fertilisers or from aglime reactions in the soil.

The emissions resulting from acidification caused by nitrogen fertiliser use in the field shall be accounted for in the emission calculation, based on the amount of nitrogen fertilisers used.  For nitrate fertilisers, the emissions from the neutralisation of nitrogen fertilisers in the soil shall be 0,806 kg CO2/kg N; for urea fertilisers, the neutralisation emissions shall be 0,783 kg CO2/kg N.

The real amount of aglime used shall be duly documented. Emissions shall be calculated as follows:

The emissions from fertilizer acidification may exceed those attributed to liming. In such a case, the subtraction would result in apparently negative net liming emissions because not all of the fertilizer-acidity is neutralized by aglime but also partly by naturally-occurring carbonates. In this case, the net liming emissions shall be counted zero, but the fertilizer-acidification emissions that occur anyway shall be maintained in line with section 1.4.1. If data on actual aglime use is not available, the aglime use recommended by the Agricultural Lime Association shall be assumed. This shall be a function of the type of crop, measured soil pH, soil type and type of liming material. The accompanying CO2 emissions shall be calculated using points 1 and 2 of the procedure above. However, the subtraction specified in point 3 shall not be applied in this case, since the recommended use of aglime does not include aglime used to neutralize fertilizer applied in the same year, so there is no possible double counting of fertilizer neutralization emissions.

1.5.   Soil (nitrous oxide/N2O) emissions from crop cultivation

The calculation of N2O emissions from managed soils shall follow the IPCC methodology. The use of disaggregated crop-specific emission factors for different environmental conditions (corresponding to Tier 2 of the IPCC methodology) shall be used to calculate the N2O emissions resulting from crop cultivation. Specific emission factors for different environmental conditions, soil conditions and different crops should be taken into account. Economic operators could use validated models to calculate those emission factors provided that the models take these aspects into account. In line with the IPCC guidelines (⁵), both direct and indirect N2O emissions shall be taken into account. The GNOC tool shall be used, which is based on the formulas below, following the naming conventions in the IPCC (2006) guidelines:

Ntotal – N = N2Odirect – N 2O+ N2Oindirect – N

Where:

For mineral soils: NDirect – N = [(FSN 2O+ F1ij] ON) • EF+ [FCR • EF1]

For organic soils: N2ODirect – N = [(F + F1] ON) • EF+ [FF1] CR • E+ [(F2CG, Temp] OS,CG,Temp • EF+ [FCROS,CG,Trop • E2CG,Trop]

For both mineral and organic soils: N 2 ODirect – N = [((FGASF) SN • Frac+ (FGASM) • EF4] ON • Erac+ [(F+F+ FCR) • FracLeach-(H) • EF5]

It must be calculated for:

(a) sugar beet, sugar cane according to IPCC (2006) Vol. 4 Chapter 11 Eq. 11.6, not considering below-ground residues and with the addition of N input from vignasse and filter cake in the case of sugar cane; FBurnt • Cf) • [RAG • NAG • (1 – FracRemove)] CR = Yield • DRY • (1-Frac+ FVF

(b) coconut and oil palm plantations applying a fixed N input based on literature as IPCC (2006) provides no default calculation method for standard emission factors, pursuant to Annex IX;

(c) for all other crops according to IPCC (2006) Vol. 4 Chapter 11 Eq. 11.7a 11.11, 11.12, as FBurnt • Cf) • AGDM • NAG • (1-FracRemove) CR = (1-Frac+ (AG+ Yield • DRY) • RBG-BIO • NBG Where: N2Ototal – N = direct and indirect annual N2O–N emissions produced from managed soils; kg N2O–N ha^-1 a^-1 N2Odirect – N = annual direct N2O–N emissions produced from managed soils; kg N2O–N ha^-1 a^-1 N2Oindirect – N = annual indirect N2O–N emissions (that is to say, the annual amount of N2O–N produced from atmospheric deposition of N volatilised from managed soils and annual amount of N2O–N produced from leaching and run-off of N additions to managed soils in regions where leaching/run-off occurs); kg N2O–N ha^-1 a^-1 FSN = annual synthetic nitrogen fertiliser input; kg N ha^-1 a^-1 FON = annual animal manure N applied as fertiliser; kg N ha^-1 a^-1 FCR = annual amount of N in crop residues (above ground and below ground); kg N ha^-1 a^-1 FOS,CG,Temp = annual area of managed/drained organic soils under cropland in temperate climate; ha^-1 a^-1 FOS,CG,Trop = annual area of managed/drained organic soils under cropland in tropical climate; ha^-1 FracGASF = 0,10 (kg N NH3–N + NOx–N) (kg N applied)^-1. Volatilisation from synthetic fertiliser FracGASM = 0,20 (kg N NH3–N + NOx–N) (kg N applied)^-1. Volatilisation from all organic nitrogen fertilisers applied FracLeach-(H) = 0,30 kg N (kg N additions) -1. N losses by leaching/run-off for regions where leaching/run-off occurs EF1ij = Crop and site-specific emission factors for N2O emissions from synthetic fertiliser and organic N application to mineral soils (kg N2O–N (kg N input)^-1); EF1 = 0,01 [kg N2O–N (kg N input) ^-1] EF2CG,Temp = 8 kg N ha^-1 a^-1 for temperate organic crop and grassland soils EF2CG,Trop = 16 kg N ha^-1 a^-1 for tropical organic crop and grassland soils EF4 = 0,01 [kg N2O–N (kg N NH3–N + NOx–N volatilised) ^-1] EF5 = 0,0075 [kg N2O–N (kg N leaching/run-off) ^-1] Yield = annual fresh yield of the crop (kg ha^-1) DRY = dry matter fraction of harvested product [kg d.m. (kg fresh weight)^-1] (see Table 1) FracBurnt = Fraction of crop area burnt annually [ha (ha)-1] Cf = Combustion factor [dimensionless] (see Table 1) RAG = Ratio of above-ground residues, dry matter to harvested dry matter yield, for the crop [kg d.m. (kg d.m.)^-1] (see Table 3) NAG = N content of above-ground residues [kg N (kg d.m.)-1] (see Table 1) FracRemove = Fraction of above-ground residues removed from field [kg d.m. (kg AGDM)^-1] FVF = Annual amount of N in sugar cane vignasse and filter cake returned to the field [kg N ha^-1], calculated as Yield * 0,000508. AG = Above-ground residue dry matter [kg d.m. ha^-1]

N2O emissions from soils under agricultural use, in different agricultural fields under different environmental conditions and agricultural land use classes can be determined following the Stehfest and Bouwman (2006) statistical model (hereinafter referred to as ‘the S&B model’):

Where:

The EF1ij for the biofuel crop i at location j is calculated (S&B model) as:

EF1ij = (Efert,ij – Eunfert,ij)/Nappl,ij

The IPCC (2006) factor (EF1) for direct N2O emissions from fertiliser input based on a global mean shall be replaced by the crop- and site-specific EF1ij for direct emissions from mineral fertiliser and manure N input, based on the crop- and site-specific EF1ij, applying the S&B model.

Where:

EMISSIONS FROM THE COLLECTION, DRYING AND STORAGE OF RAW MATERIALS

Emissions from the collection, drying and storage of raw materials include all emissions related to fuel use in the collection, drying and storage of raw materials.

Emissions from collection

Emissions from the collection of raw materials include all the emissions resulting from the collection of raw materials and their transport to storage. The emissions are calculated using appropriate emission factors for the type of fuel used (diesel oil, gasoline, heavy fuel oil, biofuels or other fuels).

Biomass drying

The cultivation emissions shall include emissions from drying before storage as well as from storage and handling of biomass feedstock. Data on energy use for drying before storage shall include actual data on the drying process used to comply with the requirements of storage, depending on the biomass type, particle size, moisture content, weather conditions, etc. Appropriate emission factors, including upstream emissions, shall be used to account for the emissions from the use of fuels to produce heat or electricity used for drying. Emissions for drying include only emissions for the drying process needed to ensure adequate storage of raw materials and does not include drying of materials during processing.

ACCOUNTING FOR EMISSIONS FOR ELECTRICITY USED IN FARMING OPERATIONS

When accounting for the consumption of electricity not produced within the fuel production plant, the GHG emissions intensity of the produced and distributed electricity shall be assumed to be equal to the average emission intensity of the produced and distributed electricity in a defined region, which can be at a NUTS2 (⁷) region or a national level. In case national electric emission coefficients are used, the values from Annex IX shall be used. By way of derogation from this rule, producers may use an average value for an individual electricity production plant for electricity produced by that plant if it is not connected to the electricity grid and sufficient information are available to derive an emission factor.

ANNEX VIII

A. Process of low ILUC risk certification

To start the certification process, an economic operator has to submit an application to a certification body recognised by a voluntary scheme for low ILUC risk biomass certification. The applicant may be a farm, a first gathering point or a group manager, acting on behalf of a group of farmers.

The low ILUC risk certification application shall contain at least the following information:

(a) the name and contact details of the applicant or applicants, including where relevant the members of a group for group certification (⁸);

(b) a description of the low ILUC risk additionality measures envisaged, including: (i) details on the delineated plot where the additionality measure will be implemented, including current land use, current management practices, current plot yield data, and if applicable a statement on whether the land is unused, abandoned or severely degraded; (ii) description of the additionality measures and an estimate of the additional biomass that will be produced following its application (either through a yield increase or production on unused, abandoned or severely degraded land);

(c) information on any existing Commission-recognised voluntary scheme certification (name of the voluntary scheme, certificate number, status and validity period).

If the application is made after the additionality measures have been implemented, only the additional biomass produced after the date of low ILUC risk certification may be claimed as low ILUC risk.

1. Content of the management plan

Once the low ILUC risk application is accepted, the economic operator shall develop a management plan and submit it to the certification body. The management plan shall build on the information in the certification application, and include:

(a) a definition of the delineated plot of land;

(b) a description of additionality measures;

(c) check on sustainability of the additionality measure against the requirements of Directive (EU) 2018/2001;

(d) where relevant, demonstration of additionality assessment (either financial attractiveness or non-financial barrier test);

(e) determination of the dynamic yield baseline, including: (i) for yield increase measures: at least 3 years of historical crop yield data related to the delineated plot of land; (ii) for cultivation on unused, abandoned or severely degraded land: proof of land status (the baseline yield for cultivation on unused, abandoned or severely degraded land is considered to be zero)

(f) estimate of the additional biomass yield per year, with reference to the dynamic yield baseline for the delineated plot.

The management plan must allow a comparison to be made between the use of the delineated plot before and after implementation of the additionality measure.

2. Non-exhaustive list of additionality measures

Additionality category	Additionality measure	Example
Mechanisation	Machinery	Adoption of machinery that reduces/complements existing workforce input to boost output or reduce losses. This could include sowing, precision farming, harvesting machinery or machinery to reduce post-harvest losses.
Multi-cropping	Sequential cropping	Introduction of second crop on same land in the same year.
Management	Soil management	Mulching instead of ploughing, low tillage.
Fertilisation	Optimisation of fertilisation regime, use of precision agriculture.
Crop protection	Change in weed, pest and disease control.
Pollination	Improved pollination practices.
Other	Leaves room for innovation, combinations of measures and unforeseen developments.
Replanting (for perennial crops) (1)	Choice of crop varieties	Higher yield variety, better adaptation to eco-physiological or climatic conditions.
(1) Replanting at the end of the crop lifetime is always necessary for a perennial crop. For replanting to count as an additionality measure, the economic operator must prove that their replanting goes beyond ‘business as usual’.

Additionality measures are measures that go beyond common agricultural practices. Table 1 contains a non-exhaustive list of the types of yield increase additionality measures that economic operators can apply. Measures, or combinations of measures, shall boost output without compromising sustainability. The additionality measure shall not compromise future growing potential by creating a trade-off between short-term output gains and mid/long-term deterioration of soil, water and air quality and pollinator populations. The additionality measures shall not result in homogenisation of the agricultural landscape through removal of landscape elements and habitats such as solitary trees, hedgerows, shrubs, field edges or flower strips.

Only additional yield above the dynamic yield baseline may be claimed as low ILUC risk. Furthermore, an additionality measure may only be certified if it aims to achieve additional yields as a result of an improvement in agricultural practice. If a measure is applied that only aims to improve the sustainability of the plot, without improving yields, it is not deemed an additionality measure. This is not the case with cultivation on unused, abandoned or severely degraded land, in which case the cultivation itself is the additionality measure.

The economic operator will have to demonstrate that the management plan sets reasonable expectations on the yield increase by referring to, for example, scientific literature, experience from field trials, information from agronomy companies, seed/fertiliser developers or simple calculations. Satisfactory evidence supporting the expected yield increase of the additionality measure applied is needed for the project to be certified.

In the case of agricultural improvements, the agricultural practices applied, machinery and means before and after the additionality measure has been applied shall be documented in detail as part of the management plan. This shall allow a comparison in order to (i) determine whether an additionality measure has been implemented; (ii) evaluate if that additionality measure may be considered to be additional compared to a ‘business as usual’ development.

B. Additionality assessment: Financial attractiveness or barrier analysis tests

1. Financial attractiveness test

The financial attractiveness test shall demonstrate that the investment required for the additionality measure becomes financially attractive only if the resulting additional yield is certified as low ILUC risk. The analysis shall consist of a simple financial analysis of the envisaged low ILUC risk additionality measure investment.

The test shall include only those costs and yields that are directly related to the additionality measure investment. Normal operating costs of the entire farm shall therefore not be included in the analysis. The costs and revenues included in the test shall be related to the preparation, implementation, maintenance and decommissioning of the additionality measure that would not have been otherwise incurred.

Financial attractiveness arises from a business case in which the net present value (‘NPV’) (⁹) of the investment is positive, which means that the investment may be conducted by the economic operator itself. As a result, only measures for which the business case analysis is negative (without the inclusion of a premium) shall pass the financial additionality test and become eligible to be certified as low ILUC risk. Outcomes above zero (a positive NPV) may still be eligible only if they pass the non-financial barrier test.

Formula to calculate the NPV of an investment:

Where:

The parameters used in the NPV calculation shall be in line with the data included in the management plan.

The following parameters shall be included in the NPV calculation:

(a) estimate of additional biomass volume;

(b) feedstock sales price [currency/tonne]: (i) the feedstock sales price may be a single number extrapolated over the lifetime of the additional yield investment; (ii) this single number may be based on an average of actual historical feedstock sales values achieved by the economic operator. The average value shall be based on data for the same 3 years that the historical yield data used to set the dynamic yield baseline; (iii) in the event of introducing a new crop for which the economic operator does not have actual price data, this value may be based on price data from FAOSTAT (¹⁰);

(c) discount rate to be used: 3,5 % for high income countries (¹¹) and 5,5 % for all other countries;

(d) lifetime of the investment: (i) a lifetime of up to 10 years shall be used in conformity with the lifetime of the low ILUC risk certification (baseline validity); (ii) in some cases, the maximum lifetime of the investment may be set at 25 years based on the typical lifetime of perennial crops (that is to say, oil palm tree, in the case of oil palm replanting);

(e) investment cost related to the additionality measure [CAPEX + OPEX].