EU ETS review opens new opportunities for the energy transition
Bioenergy Europe calls for biochar and sustainable bioenergy to be fully reflected in the final framework.
Brussels, 20 July 2026 – Bioenergy Europe welcomes the European Commission’s proposal to integrate permanent carbon removals into the EU Emissions Trading System (ETS). By reflecting the amended European Climate Law, the review opens a clearer pathway for technologies such as Bioenergy with Carbon Capture and Storage, or BioCCS.
This is an important step towards building the investment conditions needed to move permanent-removal projects from planning to deployment, while ensuring they can contribute alongside continued emissions reductions to the EU’s 2040 and 2050 climate objectives.
“For project developers, the key issue is no longer whether permanent removals will be needed, but whether Europe creates a market that allows them to scale. Integrating them into the ETS can provide the long-term demand signal required to mobilise investment, develop infrastructure and bring the first commercial projects forward,” said Szabolcs Szalay, Policy Officer at Bioenergy Europe.
Complete the carbon removals toolbox
As the proposal moves through the legislative process, Bioenergy Europe sees scope to build on the Commission’s approach by ensuring that biochar is also fully recognised.
“Biochar can deliver durable carbon storage and is already covered by methodologies developed under the EU Carbon Removal and Carbon Farming Certification Regulation. Including it alongside BioCCS and DACCS would broaden the range of credible removal solutions able to contribute to the EU’s climate objectives,” Szalay added.
The next steps for a stronger ETS
Bioenergy Europe looks forward to working with the European Parliament, Member States and the Commission to:
- improve the proposed framework for permanent removals to safeguard environmental integrity, support investment and recognise the full range of high-integrity technologies;
- ensure that biochar is recognised alongside BioCCS and DACCS;
- maintain access to ETS revenues and investment instruments for bioenergy and bio-based carbon-removal technologies.
The ETS review provides a strong basis for developing a carbon market that supports emissions reductions, permanent removals and European industrial competitiveness together.
