Smart Net-Zero

April 15, 2026 | Reuters |

The Greenhouse Gas Protocol has published a new Land Sector and Removals Standard (LSRS), establishing consistent rules for food and agriculture companies to measure and report land-based climate impacts. Taking effect in 2027 for firms with significant land-based activities, the standard requires companies to report land-use emissions separately from carbon removal claims, closing a loophole that allowed poor performance in one area to be offset by gains in another. Bioenergy sources such as biomass can no longer be classified as carbon neutral. Companies choosing to report carbon removals must provide evidence of sequestration location, commit to ongoing monitoring, and maintain buffer reserves against carbon reversals such as wildfires. The standard also requires disclosure of agricultural "leakage"—deforestation triggered when production shifts to unprotected areas. While welcomed by brands including Nestlé as a step toward credible climate accounting, stricter monitoring and traceability requirements could render some regenerative agriculture programmes economically unviable.