• Establishes the first global accounting framework for land emissions, CO₂ removals, and biogenic products across corporate value chains
• Expands corporate climate accounting to include land use change, geologic storage, and technological removals such as direct air capture
• Takes effect January 1, 2027, reshaping how companies set and track Forest, Land and Agriculture targets worldwide

After five years of technical work and global consultation, the Greenhouse Gas Protocol has released its Land Sector and Removals Standard, introducing a long awaited framework that brings land based emissions and removals fully into corporate greenhouse gas accounting.

The new standard addresses one of the most complex and contested gaps in climate reporting. Until now, companies have faced fragmented guidance when accounting for land use change, biogenic products, and carbon removals tied to both natural and engineered systems. The Land Sector and Removals Standard aims to replace that patchwork with a single, decision ready framework that can be applied consistently across sectors and geographies.

The response from climate and ESG leaders has been direct. One industry statement accompanying the release reads:
“Congratulations to the Greenhouse Gas Protocol on the publication of its Land Sector and Removals Standard. This publication marks a significant milestone for the sector strengthening the foundation of credible corporate climate action and Forest Land and Agriculture target setting. We welcome this development and look forward to companies applying this accounting framework as they continue to set FLAG targets.”

What The Standard Covers And Why It Matters

The Land Sector and Removals Standard is the first GHG Protocol standard to provide detailed accounting requirements for quantifying, reporting, and tracking land sector emissions and CO₂ removals within corporate inventories. It covers land management and land use change, removals stored in land and geologic carbon pools, and emissions from biogenic products across the value chain.

Critically for investors and regulators, the standard also extends to technological CO₂ removals, including direct air capture and carbon capture with geologic storage. This brings engineered removals into the same accounting discipline as nature based activities, enabling clearer comparisons and reducing the risk of selective disclosure.

For companies setting climate targets, the implications are material. The framework allows land sector emissions and removals to be incorporated directly into mitigation strategies, performance tracking, and progress reporting against greenhouse gas reduction goals. This directly affects how FLAG targets are set, assessed, and scrutinized by capital markets.

Governance And Global Process

The standard will take effect on January 1, 2027, giving companies a defined transition period to adapt systems, data collection, and internal governance. Its development involved more than 300 external reviewers and broad participation from corporate, academic, and civil society stakeholders, reflecting the political and scientific sensitivities tied to land based carbon accounting.

The GHG Protocol has confirmed that additional guidance will follow. A dedicated guidance document is scheduled for publication in the second quarter of 2026, with supporting materials to be released and updated throughout the year. This staged rollout reflects the technical complexity of land sector data and the need for operational clarity before mandatory application.

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Forest Carbon Accounting Deliberately Deferred

One of the most closely watched decisions is what the standard does not yet include. Forest carbon accounting has been explicitly excluded from this version. The Independent Standards Board acknowledged deep differences across scientific and practitioner communities regarding both the feasibility and integrity of forest carbon methodologies.

Rather than delay the entire standard, the GHG Steering Committee opted to defer forest carbon accounting to a future update. A formal Request for Information will be issued to gather stakeholder input, followed by global field testing before any inclusion. Until then, companies that choose to disclose forest carbon impacts are expected to be transparent about the methodologies they apply.

What Executives And Investors Should Take Away

For corporate leaders, the Land Sector and Removals Standard raises the bar on accountability. Land use decisions, supply chain sourcing, and investments in carbon removals will increasingly sit under standardized disclosure and investor scrutiny. For investors, the framework offers a clearer basis to assess transition credibility, carbon risk, and the integrity of land based climate claims.

At a global level, the standard strengthens alignment between corporate reporting, national climate strategies, and emerging regulatory regimes. As land use and removals play a growing role in net zero pathways, the credibility of these numbers will shape trust in climate commitments worldwide.

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