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An investigation into the incentives provided by LULUCF reporting and accounting and their implications - Briefing for ECF and Fern

The climate impact of forest and land management in the EU and the role of current reporting and accounting rules

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The EU LULUCF Regulation considers, for the first time, a separate target for the land use, land use change and forestry (LULUCF) sector. The sector is also supposed to contribute to the legally bind-ing target of net zero greenhouse gas (GHG) emissions by 2050 proposed by the European Climate Law. Hence, the importance of the LULUCF sector emissions have increased. This requires a critical review of completeness, accuracy and consistency of LULUCF reporting and accounting. But the rules for reporting and accounting as laid out in the EU LULUCF Regulation also need to better reflect this importance by setting incentives for land management improvement.

This briefing highlights challenges in GHG reporting and accounting for cropland, harvested wood products, forest management change and organic soils, e.g. related to uncertainty, lack of data and high level of aggregation, assesses the implications of these challenges on environmental integrity and incentives for improving land management.