EU Carbon Removal Certification Framework: Achieving Climate Targets and Supporting the Transformation of The Agri-food Sector

The agri-food sector plays a pivotal role in achieving the EU carbon neutrality and in broader climate mitigation and adaptation measures globally. As the EU ramps up its efforts to achieve climate neutrality approaching the milestone year of 2030, the Carbon Removal Certification Framework (CRCF) emerges as another critical initiative.

This framework, which became a law in December 2024, is set to create a robust system to certify carbon removal and carbon reduction activities primarily in the EU, however it can potentially become a tool for scaling global carbon removals efforts, which are needed on top of rigorous carbon emissions reduction measures.

So, what opportunities does CRCF bring for businesses? Read on for our team’s expert analysis of yet another game-changing EU initiative.

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The CRCF & The Agri-food Sector Transformation

The agrifood sector is responsible for a third of the global greenhouse gas (GHG) emissions. Its contribution to global warming is substantial and will need to decrease. The sector can not only reduce its carbon emissions, it can also contribute to our climate targets by increasing its carbon removals potential. Through practices such as carbon farming and soil management, the sector can actively support the EU’s climate neutrality goals while gaining benefits like new revenue streams and increased market competitiveness.

And this is where CRCF comes in.

Where agriculture is concerned, it offers farmers an opportunity to commercialise not only their agricultural products but also their carbon reduction capabilities, bringing in the funding streams for the transformation to a more regenerative model. At the same time, CRCF will give other businesses the possibility to support this much-needed transformation and get credible credits for its efforts that can also be used for compliance purposes as we will explain later in the article.

What Is The EU Carbon Removal Certification Framework?

The CRCF was published in the EU Official Journal in December 2024 as part of the EU’s broader sustainability policies aiming to transition the EU to climate neutrality by 2050.

The CRCF focuses on standardising and certifying voluntary carbon removal activities across various sectors, ensuring these activities are effective, measurable, and verifiable. By establishing clear methodologies for quantifying, monitoring, and verifying carbon removals, the framework fosters transparency and investor trust and combats greenwashing. The framework also demands strict adherence to biodiversity goals, ensuring that carbon removal efforts do not come at the expense of ecosystems.

Source: European Commission – Factsheet – Certification of carbon removals

For the agri-food sector, the CRCF offers a roadmap to integrate carbon removal practices into their operations. It emphasises biodiversity protection and sustainability, underscoring the sector’s potential to lead in climate action while boosting its long-term growth.

The CRCF covers three categories of carbon removals and soil emission reductions:

1. Permanent carbon removals: Direct Air Capture, Bioenergy with Carbon Capture and Storage, and biochar;
2. Carbon farming: carbon sequestration and soil emission reduction – restoration of forest, soil management, and innovative farming practices;
3. Carbon storage in products: long-lasting bio-based materials, like wood.

Below is an overview of the carbon farming and carbon storage in products approaches.

The Carbon Farming Approach

Carbon farming works by implementing agricultural practices that either remove CO₂ from the atmosphere or reduce greenhouse gas emissions, storing carbon in soils, plants, or biomass.

By adopting these practices, agri-food businesses can not only address climate challenges, but also lower operational costs through optimised resource use, enhance access to green financing, and strengthen supply chain resilience by improving soil health and productivity.

Types of Carbon Farming Activities

Carbon Sequestration

Temporarily removes and stores carbon in soils or biomass through practices such as:

• Conservation Tillage: Minimising soil disturbance to retain carbon.
• Agroforestry: Planting trees within farmland.
• Afforestation and Reforestation: Expanding or restoring forested areas.

Soil Emission Reductions

Reduces GHG emissions from soils via:

• Rewetting Peatlands: Restoring wetlands to minimise carbon release.
• Precision Farming: Using technology to optimise resource use.
• Fertiliser Management: Reducing nitrous oxide emissions.

Livestock Emission Reductions

Livestock emission reductions are currently not featured in the CRCF, but could be added by the legislators by 2026. These practices could include biogas systems, feed additives, and dietary adjustments aimed at reducing methane emissions from livestock.

Quantifying Carbon Farming

Operators must measure additional carbon benefits compared to a baseline, subtracting emissions generated during implementation. Both direct (e.g., fertiliser use) and indirect (e.g., supply chain impacts) emissions must be accounted for.

Carbon Storage: A New Horizon for Agri-food

Carbon storage is an approach that focuses on capturing carbon and storing it in materials or soils, where it can remain for extended periods, reducing its impact on the atmosphere.

With cumulative benefits, its advantages extend far beyond direct payments for carbon credits to farmers and ranchers. Improved soil quality, enhanced productivity, and long-term environmental gains add substantial value to farms, making carbon storage a strategic investment for the future.

Carbon Storage in Products

A significant opportunity for farmers lies in producing bio-based materials that contribute to carbon storage. These materials can be integrated into construction and other industries, providing durable solutions for locking in CO₂. Examples include:

• Bio-based Construction Products: Timber, agricultural crops, and other sustainably sourced materials can be used in construction, offering long-term carbon storage.
• Advanced Construction Techniques: Using bio-based products in energy-efficient building designs maximises climate benefits.

In this context, agricultural crops have a noteworthy dual role: they not only capture atmospheric carbon during their growth but also serve as long-term carbon storage when used in bio-based products.

Carbon Storage in Soil

Agricultural systems, which cover one-third of the world’s arable land, have vast potential for carbon storage as Soil Organic Carbon (SOC). Practices such as no-till farming, crop rotation, and managed grazing can improve the soil carbon budget by drawing down atmospheric CO₂. Additionally, carbon can be converted into recalcitrant forms, ensuring long-term storage and helping mitigate global warming.

Next Steps For The CRCF: Legislative Timeline And Implementation Stages

The CRCF will be implemented in stages, through delegated acts. Here are the key milestones of this process:

26th December 2024

• The Regulation entered into force.

2025

• Completion of initial methodologies for carbon removal techniques such as Direct Air Carbon Capture and Storage (DACCS), Bioenergy with Carbon Capture and Storage (BECCS) and Biochar.
• Pilot methodologies for carbon farming activities, including peatland rewetting, agroforestry, and soil carbon improvements.
• Potential inclusion of carbon storage in products under the LULUCF framework.

2026 – 2027

• Approval of certification schemes and certification of the first carbon removal units.
• Expansion of scope to include livestock emissions, with methodologies to address methane reduction through feed additives, biogas systems, and dietary changes.
• Assessment of integrating permanent carbon removals into the EU ETS.
• Review of CRCF-certified units for compensating emissions outside the EU, considering alignment with the Paris Agreement’s Article 6.

2028

• Establishment of a registry for carbon removals and soil emission reductions.
• Comprehensive review of CRCF implementation, including potential certification of carbon storage in third countries, contingent on bilateral agreements and compliance with EU standards.

What Changes CRCF Will Bring To The Voluntary Carbon Market and the Use of Carbon Credits By Businesses

The CRCF paves the way for the potential use of CRCF-compliant credits in both regulatory and voluntary contexts. These credits could support compliance with various laws affecting EU Member States and companies, while also serving as a benchmark for corporate voluntary efforts. By setting a high standard for quality removal credits based on global best practices, the CRCF is expected to drive demand for EU-compliant credits in corporate carbon neutrality and compliance initiatives.

For compliance purposes, CRCF-compliant credits could be utilised under the EU Emissions Trading System (EU ETS), the Effort Sharing Regulation (ESR), the Land Use, Land-Use Change, and Forestry Regulation (LULUCF), and the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). They may also support adherence to national or subnational climate laws.

The CRCF’s quality standards could become a key requirement for accessing EU funding sources, such as the Common Agricultural Policy (CAP), the Innovation Fund, or State aid programs. Additionally, these standards may help meet the criteria set out in the Green Claims Directive.

In the voluntary space, CRCF credits could be applied to beyond-value-chain mitigation efforts undertaken by companies, institutions, jurisdictions, or individuals. They could also support contribution claims, guarantee the sourcing of certified low-carbon materials, and bolster voluntary sustainability initiatives.
Do you have questions about the CRCF and the potential it holds for your business?

Get in touch and let us help you prepare for the EU’s green future, turning sustainability into a strategic advantage.

Want someone with deep experience and connections in the EU to help guide your sustainability strategy? Get in touch!

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