New Carbon Accounting Rules for the Land Sector

Land use and carbon removals enter the mainstream of corporate reporting

Land use has always been one of the hardest parts of carbon accounting. For many businesses, it sits several steps away in the supply chain. Data is patchy, responsibility is shared, and the impacts can change year to year based on weather, farming practices, or land management choices.

Until now, that complexity meant land-related emissions and carbon removals were often excluded from company carbon footprints. They were treated as optional, secondary, or too difficult to measure with confidence. For UK SMEs supplying food, clothing, timber, or consumer goods, this created a gap between reported emissions and real-world impacts.

That gap is starting to close. On 30 January 2026, the Greenhouse Gas Protocol published the Land Sector and Removals Standard. This is the first global framework that sets out how companies should account for greenhouse gas emissions, and carbon dioxide removals, linked to land and land-based activities.

The standard is technical, but its intent is simple. It brings land use into the same reporting discipline as energy, transport, and industrial processes. It also sets rules on how removals, such as carbon stored in soil or trees, can appear in corporate carbon inventories.

For UK businesses, this matters less because of immediate legal duties and more because of knock-on effects. Carbon reporting standards shape tender requirements, supplier questionnaires, investor expectations, and voluntary schemes like science-based targets. When reporting rules change, commercial expectations follow.

If your business operates farms, forests, or owned land, the relevance is obvious. However, even if you buy ingredients, materials, or products from land-intensive supply chains, the standard will start to influence how your customers and partners assess emissions claims.

How the Land Sector and Removals Standard was developed

The Land Sector and Removals Standard has been developed by the Greenhouse Gas Protocol, led by the World Resources Institute and the World Business Council for Sustainable Development. Work began more than five years ago in response to growing pressure to clarify how land emissions and removals should be treated.

According to the GHG Protocol, land use accounts for close to a quarter of global greenhouse gas emissions. That includes deforestation, agriculture, peatland drainage, and land conversion for development. Despite this scale, corporate reporting has lacked a consistent approach.

The development process involved over 300 external reviewers, including companies, academics, government bodies, and civil society groups. The final text was approved by the GHG Protocol Independent Standards Board, which oversees alignment with existing corporate accounting rules.

The new standard sits alongside the existing Corporate Standard and Scope 3 Standard. It does not replace them. Instead, it adds land-specific requirements and definitions to ensure emissions are accounted for consistently across company inventories.

Importantly, the standard has been designed for use across global value chains. It recognises that companies often do not own or control land directly. As a result, it includes methods for dealing with varying data quality and levels of traceability.

A separate guidance document is expected later in 2026. This will include worked examples and practical case studies. Until then, companies are expected to rely on the standard text and existing GHG Protocol guidance.

What the standard covers in practical terms

The Land Sector and Removals Standard applies to both emissions and removals linked to land-based activities. It covers emissions from land use change, such as deforestation or conversion of grassland to cropland. It also includes ongoing agricultural emissions, including methane from livestock and nitrous oxide from fertilisers.

In addition, the standard introduces clear rules for carbon dioxide removals. These include biological removals, like carbon stored in soils, crops, and trees, and certain technological removals, such as direct air capture with geological storage.

One central feature is the requirement to define spatial boundaries. Companies are expected to trace emissions and removals back to specific areas of land where possible. This supports consistency, auditability, and alignment with schemes that require land-level verification.

The standard also sets expectations around ongoing monitoring. Where removals are claimed, companies must track the risk of reversal. A reversal happens when stored carbon is later released, for example through soil disturbance, fire, or land clearance.

Responsibility for monitoring does not always sit with the reporting company. Monitoring can be carried out by farmers, third parties, national systems, or other recognised mechanisms. However, accountability for reporting remains with the company making the claim.

The standard applies at an entity level and is designed to be used annually. It integrates with Scope 1, Scope 2, and Scope 3 reporting rather than operating as a standalone disclosure.

Key dates, scope, and reporting expectations

The final standard was published on 30 January 2026. The GHG Protocol has stated that it takes effect from 1 January 2027 for companies with relevant land sector activities.

This means that 2027 reporting years will be the first where alignment is expected. For many businesses, particularly SMEs, this creates a short preparation window, especially where land impacts sit deep in supply chains.

The standard introduces core reporting metrics. These include greenhouse gas emissions, carbon dioxide removals, and additional indicators related to traceability. Traceability refers to how clearly emissions and removals can be linked to defined land areas.

The framework allows for staged improvement. Companies can start with available data and improve accuracy over time. However, transparency is essential. Assumptions, data gaps, and estimation methods must be disclosed.

Notably, the standard enables companies to reflect the outcomes of supply chain interventions more clearly. For example, changes to farming practices intended to reduce emissions or increase soil carbon can be recognised within Scope 3 reporting.

The GHG Protocol has emphasised that flexibility is not a reason to avoid reporting. Instead, it is meant to support consistent reporting while data systems mature.

What this means for UK SMEs and their supply chains

For most UK SMEs, the impact of the Land Sector and Removals Standard will be indirect rather than immediate. Very few small businesses will be required to adopt it overnight. However, larger customers and partners are likely to adopt it quickly.

As a result, SMEs may see changes in the questions they are asked. Supplier questionnaires may start to request land-use data, sourcing locations, or evidence of farming practices. This is particularly likely in food, drink, textiles, timber, and consumer goods.

Businesses that already report Scope 3 emissions should expect greater scrutiny of land-related categories. Where emissions reductions or removals are claimed, buyers may look for alignment with the new standard.

There are also cost considerations. Improved data collection often requires new systems, external verification, or collaboration with suppliers. For SMEs operating on thin margins, this can be challenging.

At the same time, there are commercial opportunities. Clear accounting rules make it easier to demonstrate progress. Businesses that invest early in understanding land impacts may find it easier to meet tender requirements or maintain preferred supplier status.

It is also worth noting the interaction with voluntary initiatives. Many net zero strategies rely on land-based measures. Clearer accounting rules may tighten the evidence required to support those claims.

From a risk perspective, long-term monitoring obligations deserve attention. Where a company claims carbon removals, it carries an ongoing duty to account for reversals. This has implications for contracts, supplier agreements, and reporting processes.

Key facts for quick reference

• The Land Sector and Removals Standard was published on 30 January 2026 by the GHG Protocol.
• It applies from 1 January 2027 for companies with land-based emissions or removals.
• The standard covers land use change, agriculture, forestry, and eligible carbon removal methods.
• Companies must define spatial boundaries where possible to support traceability and audits.
• Carbon removals can be reported, but ongoing monitoring for reversals is required.
• Monitoring can be carried out by third parties, but reporting responsibility remains with the company.
• The framework integrates with existing Scope 1 to Scope 3 corporate inventories.

How we see this affecting day to day business decisions

From our work with UK SMEs, the biggest challenge will not be the accounting rules themselves. It will be coordination across supply chains where nobody feels full ownership of the data.

Businesses should expect a gradual increase in data requests rather than a single compliance deadline. Large buyers tend to align with new standards in stages. Early questions often focus on transparency rather than precision.

We expect more emphasis on contracts and supplier terms. Where land-based claims sit within a net zero plan, customers may want clarity on who monitors, who pays, and who bears the risk of reversals.

It is also likely that assurance will become more common. As standards mature, third party checks often follow. SMEs should factor this into long-term reporting costs.

At the same time, there is scope for practical action. Mapping supply chains, understanding where land impacts sit, and documenting existing practices all build resilience. None of this requires perfect data on day one.

For businesses new to carbon reporting, this reinforces the value of getting core Scope 1 to Scope 3 data in place first. Land impacts are much easier to manage when the wider inventory is stable. Our SBS support for carbon reporting compliance often starts with that foundation.

Where land use is central to the business, early engagement with suppliers can reduce surprises. Clear conversations now are often cheaper than rushed data collection later.

Authoritative sources and further information

The primary reference is the Greenhouse Gas Protocol itself. Full details of the Land Sector and Removals Standard are available from the GHG Protocol website.

The World Resources Institute provides background on the rationale for the standard and its development process, as outlined by WRI as the GHG Protocol secretariat. Updates are published through the World Resources Institute.

UK businesses may also want to track commentary from established media and policy sources as adoption develops. Coverage from the Financial Times and BBC News often highlights how reporting changes affect procurement and investment decisions.

For practical support on managing supply chain emissions, our guide to Scope 3 emissions for SMEs explains how to approach data collection in complex value chains without overcomplicating the process.