Land use, land-use change and forestry

Written by Liselotte Jensen.

The revision of the Land Use, Land-use Change and Forestry (LULUCF) Regulation effectively increases reduction in overall net greenhouse gas (GHG) emissions in 2030 to 57 %, from the 55 % required by the European Climate Law. This is thanks to an EU target for carbon dioxide removals in the LULUCF sector.

Background

In preparation for the European Climate Law, the co-legislators agreed a 2030 target of 55 % net emissions reduction compared with 2005. The European Parliament had favoured higher ambitions, but agreed to the compromise after the European Commission promised to include a minimum 300 million tonnes of CO₂ equivalent (Mt CO₂e) removal target in the LULUCF revision. As the contribution of removals to the 55 % target is limited to 225 Mt CO₂e, any removals above this level will increase overall net reduction. The final LULUCF 2030 removal target of 310 Mt CO₂e – along with improved monitoring, reporting and verification, and penalties for non-compliance – aims to reverse the declining LULUCF removals trend, which without the revision was otherwise expected to continue.

Objectives and targets

The LULUCF Regulation will, from 2026, apply a new accounting approach to emissions and removals under the LULUCF sectors. Each Member State has an assigned four-year LULUCF budget for the 2026-2029 period, setting out the trajectory towards its national 2030 target, to ensure delivery of the overall EU target. In the period up to the end of 2025, each country must continue to ensure the ‘no debit’ rule, guaranteeing that GHG emissions from within the sector do not surpass the sector’s removals.

LULUCF reporting categories comprise various types of carbon pools of living biomass (above and below ground), dead organic matter (dead wood and litter), and organic soil carbon. Land-use changes are also reported, for example: deforestation, afforestation, or changes from grassland to arable land or settlements. Removals are mainly delivered by forests, whereas land-use changes and cropland account for most emissions. Starting in 2026, wetland areas will become a reporting category as well.

Owing to the range of categories, the LULUCF Regulation can affect both private and public sector land and forest managers, with impacts on the related value chains such as food and energy from biomass production, as well as bio-based construction and packaging materials. To deliver the increased LULUCF removal target and their targets under the Effort-sharing Regulation, Member States can use flexibilities between the two. Furthermore, a mechanism is set up to allow for compensation credits, where Member States can show they have taken adequate measures to ensure resilience of managed forest areas, yet were adversely affected by natural disturbances such as wildfires or pest outbreaks. Within six months of the first global stocktake under the Paris Agreement, to be finalised during the United Nations Climate Conference in December 2023, the Commission has to submit a report on the adequacy of the LULUCF Regulation. Related to this report, the Commission may choose to propose an extension of the regulation’s scope, in particular to non-CO₂ emissions from agriculture.

LULUCF Regulation: Implementation timeline

Implementation on the ground

To achieve the LULUCF Regulation’s targets, it is essential to increase and protect forest cover across Europe, as most carbon removals are delivered by forest areas. Measures to reduce emissions resulting from land-use change or cropland are also very relevant for improving the net balance within the LULUCF sector. Measures therefore include afforestation, reforestation and increasing resilience to risks such as wildfires or pest outbreaks. In the agricultural sector, applying practices such as agro-ecology and agro-forestry would be beneficial to the LULUCF targets. In the forestry sector, improved forest management practices could enable better long-term yields with benefits for biodiversity. As for the inclusion of wetlands in 2026, actions could mitigate climate change through both reduced emissions and enhanced removals while restoring key biodiverse habitats. The timeframe from implementation to return is generally long across the LULUCF sectors, underscoring the need to adopt long-term strategies.

Mapping for forest management and wildfire prevention in La Rioja, Spain
In the Spanish La Rioja province, 60 % of the area is covered by forests. Through the Forest LidaRioja initiative, using remote sensing combined with other data sources, a cartography with details on wood volume, tree heights and vegetation structure of the main forest species was developed for every 25 square metres of land. This allows forestry stakeholders to understand the forest inventory better and implement sustainable forest management measures to ensure future supply. The mapping of fuel models enables the local and regional levels to ensure preventive planning to reduce the risk of forest fires, while also allowing for real-time simulation of measures to stop a fire should it occur. The mapping of La Rioja was part of a larger EU research and innovation project.
Forests fit for future in Denmark and northern Germany
In Europe, timber production traditionally means large standing timber volumes of conifers in even-aged monocultures. Although the total yield at the time of cut may be significant, it is a one-off return in investment, with adverse impact on biodiversity and low resilience during storms. A close-to-nature forestry (CNF) approach mixes species and tree sizes, which allows for increased resilience and better conditions for biodiversity. The approach allows for continuous harvesting as trees reach optimal size. and the stock partly replenishes itself as new trees shoot naturally from the falling seeds and are not cut like in traditional plantations. Since converting plantations is a long-term investment, it often mainly occurs in state forests. In an EU funded LIFE project, the Danish Nature Agency invited 21 partners, primarily private forest owners, across Denmark and northern Germany to learn and share experiences with CNF practices and investments. The partners work together to assess the attractiveness of converting to CNF.
Maintaining permanent grasslands for farmers and tourists in Podkarpackie, Poland
Through a dedicated funding instrument from the Podkarpackie Voivodeship (local) government in Poland, permanent grassland under grazing contracts increased by 10 000 hectares between 2012 and 2019, with the number of farmers involved in the programme doubling in the same period. The programme provides improved conditions for biodiversity, ensures systematic maintenance of pastures, promotes healthy soils, and is beneficial to local nature tourism. While starting at local level in 2012, it was included as a case example of a ‘community of practice’ in the EU-funded CONSOLE project, which ran from 2019 to 2022.
Restoration of drained and degraded wetland areas around the North Sea
Several partners, primarily local and regional authorities around the North Sea, worked together in the CANAPE project on restoring wetlands such as fens and bogs. These areas provide adaptive capacity in times of increased precipitation, when they store more water, and increased resilience during droughts, when they can release stored water. Wetland areas are also natural systems with great carbon storage capacity and unique wildlife habitats. The project looked at synergies between these ecosystem services and agriculture, with a focus on paludiculture, to achieve an economic value from growing crops adapted to wetlands.

Read this ‘at a glance’ note on ‘Land use, land-use change and forestry‘ in the Think Tank pages of the European Parliament.

Read more on ‘EU measures against climate change‘.