The European Commission has adopted three certification methodologies for carbon farming under its Carbon Removals and Carbon Farming (CRCF) Regulation, establishing the first EU-wide technical framework for certifying carbon removals and emissions reductions from agricultural and land-management activities.
The act covers three categories of activity: agriculture and agroforestry on mineral soils; the rewetting and restoration of peatlands and other organic soils; and afforestation.
According to the Commission, the methodologies are designed to provide a “consistent, credible and transparent approach” to certifying carbon farming activities across the EU while helping farmers, foresters and land managers access new sources of income linked to climate-positive land management.
The methodologies form part of the wider CRCF Regulation, which came into force in December 2024 and established the first EU-wide voluntary certification framework for carbon removals, carbon farming and carbon storage in products.
ISCIA welcomes harmonisation
Reaction from the carbon farming sector has largely been positive, with industry participants viewing the framework as a significant step towards creating a more structured and credible European carbon market.
Paul Martin, president of the International Soil Carbon Industry Alliance (ISCIA), said the organisation had worked closely with the European Commission’s Directorate-General for Climate Action (DG CLIMA) throughout the drafting process and broadly welcomed the outcome.
“We view the outcome positively as it establishes minimum quality thresholds –particularly for quantifying soil organic carbon (SOC) – and creates a level playing field by harmonizing the European supply side for qualifying projects,” Martin told AgNavigator.
ISCIA represents project developers, MRV providers and agricultural supply chain companies working to develop carbon farming markets and reward farmers for adopting regenerative practices.
“The real challenge is demand”
Despite welcoming the new methodologies, Martin said the focus must now shift to stimulating demand for certified carbon farming units.
While the Commission’s proposed CRCF Buyers Club is a positive development, he argued it will not be enough on its own to absorb the volume of carbon farming units expected to reach the market over the coming years.
“The primary challenge lies on the demand side,” Martin said.
“We need systemic demand that involves participants both within the value chain (Scope 3/insetting) and outside it (offsetting) to support the costs of regenerative agriculture – at least €100/ha/year – until a regulatory market is established.”
To address this, ISCIA is working with DG CLIMA on a CRCF Units Allocation Playbook, intended to provide clear guidance for corporate supply chain participants and offset buyers investing in farm-level CRCF units while preventing double counting and improving carbon accounting transparency.
Concern over “temporary” carbon removals
Martin also highlighted concerns about the treatment of nature-based carbon removals within European climate policy.
Carbon farming credits are currently classified as “temporary” removals rather than permanent removals, a distinction that can affect buyer confidence and market value.
“Labeling carbon farming as ‘temporary’ creates a significant barrier for offset buyers looking for Core Carbon Principles criteria,” Martin said.
To overcome this challenge, ISCIA is exploring alternative approaches to permanence, including insurance-based mechanisms and the creation of a Permanence Trust that could remove reversal risk liabilities from buyers and project developers.
Eyes on future ETS integration
Looking ahead, ISCIA is encouraged that discussions around integrating agricultural carbon removals into regulated carbon markets remain active.
Recent debate surrounding the EU Emissions Trading System (ETS) review has highlighted the possibility that future reforms could allow carbon farming credits to play a larger role in compliance markets and potentially unlock ETS funding for agricultural emissions-reduction projects.
Although any such changes remain years away, Martin said ISCIA would like to see regulatory demand emerge sooner.
“As outlined in our Open Letter, ISCIA advocates leveraging regulatory drivers much earlier to stimulate demand," he said.
Among the ideas being discussed are linking access to Article 6 carbon credits or Market Stability Reserve allowances to the retirement of CRCF-certified carbon farming units.
The CRCF has established the rules needed to create a credible European carbon farming market. The next challenge is ensuring enough buyers emerge to make that market work for farmers.
