Rectifications to voluntary carbon market legislation

Rectification Declaration 15-A/2024/1 of March 5 (“Rectification Declaration 15-A/2024/1”) updates several provisions of Decree-Law 4/2024 of January 5 (“Decree-Law 4/2024”), which establishes the voluntary carbon market.

Specifically, Rectification Declaration 15-A/2024/1 has the following objectives:

·         Correct inaccuracies: Eligibility assessment procedures for projects, the guarantee fund, and emission reversal situations are clarified by correcting legal references.

·         Clarify key concepts related to the classification and framework of carbon sequestration projects: The aim is to align the provisions of Decree-Law 4/2024 with the decarbonization requirements of the energy market, facilitating access conditions.

Notably, the declaration:

o    eliminates financial attractiveness as an alternative requirement for project additionality, thereby making it optional; and 

o    clarifies that carbon sequestration situations are separate and not cumulative.

Rectification Declaration 15-A/2024/1 has been incorporated into Decree-Law 4/2024 and applies from the date this rectified decree-law entered into force (i.e., January 6, 2024).

For more information about the voluntary carbon market, please refer to our Legal Update, Legal regime for voluntary carbon market.