Rectifications to voluntary carbon market legislation

Rectification Declaration 15-A/2024/1 of March 5 makes surgical adjustments to Decree-Law 4/2024 of January 5
Rectifications to voluntary carbon market legislation
April 24, 2024

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.

April 24, 2024