Commissioner Maria Luís Albuquerque, in a written answer on 1 July 2026, defended the current European Sustainability Reporting Standards (ESRS) requirement that greenhouse gas emission reduction targets be reported as gross targets, excluding carbon removals, carbon credits, or avoided emissions. The answer, responding to a question from Renew MEP Asger Christensen, signals that the Commission prioritises direct emission cuts over removals in the near term, but leaves the door open for a reassessment after 2030. This stance directly impacts companies in the forestry, land, and agriculture (FLAG) sector, as well as other climate frontrunners that use carbon removals under frameworks like the Science Based Targets initiative (SBTi).
The question, submitted by Christensen, raised concerns that the ESRS E1 draft — developed by the European Financial Reporting Advisory Group (EFRAG) under the Corporate Sustainability Reporting Directive (CSRD) — does not allow carbon removals in emission reduction targets, creating a misalignment with SBTi and forcing frontrunner companies to apply parallel, inconsistent approaches. Christensen asked whether the Commission would ensure coherence with SBTi, avoid penalising climate frontrunners, and consider revising ESRS E1 to recognise scientifically robust carbon removals, particularly in the FLAG sector, for interim and 2030 targets.
Albuquerque's answer provides no concrete commitment to align ESRS with SBTi or to revise the standards before 2030. Instead, she reiterates that existing ESRS and the draft revised standards published for consultation on 6 May 2026 require gross targets to align with the EU's 2030 climate policy framework, which prioritises direct emission reductions. She notes that companies must still report on carbon removal projects and carbon credits, ensuring transparency without counting them toward reduction targets. This approach, she argues, avoids penalising carbon removal frontrunners while upholding the primacy of direct cuts.
Looking ahead, Albuquerque states that the Commission aims to adopt policy proposals for the post-2030 climate policy framework in the course of 2026. If that framework reassesses the role of carbon removals — including in the FLAG sector — there could be a possibility to further revise the ESRS accordingly. This signals that any change to include removals in targets would likely come only after 2030, leaving current standards unchanged for the near term. The answer thus offers no immediate relief for companies seeking alignment with SBTi, but holds out the prospect of future revision depending on the post-2030 policy direction.
The answer maintains a moderate negative impact on FLAG-sector companies and other climate frontrunners that rely on carbon removals to meet science-based targets, as they must continue using dual reporting frameworks. It has a moderate positive impact on EU regulatory coherence, as the gross-target approach aligns with the EU's 2030 climate law. Environmental NGOs may view the answer as insufficiently ambitious on removals, while business groups may see it as a missed opportunity to reduce administrative burden. The impact on EU consumers and taxpayers is indirect and negligible in the short term.