EU CRCF policy process moves towards implementation and demand creation

By Aaron Scheid, Hugh McDonald and Jonathan Gardiner (Ecologic Institute)

The EU Carbon Removals and Carbon Farming (CRCF) Regulation is entering a more concrete implementation phase, while policy discussions are increasingly turning to the question of demand for certified carbon farming activities.

DG CLIMA frames the CRCF as a key element of the EU’s post-2030 climate policy architecture and as a tool to support the EU 2040 climate target. Its future role is expected to become clearer with the review of national targets and flexibilities in the EU climate policy framework, announced for the fourth quarter of 2026.

The European Commission aims to publish the Carbon Farming Methodologies as a delegated act in the second quarter of 2026. These methodologies will shape how carbon farming activities are certified. However, an important open issue remains how to balance scientific certainty with practical implementability, especially given the lack of clear guidance on CRCF use cases.

Several implementation steps are planned. Recognition of certification providers is expected in 2026, while the EU registry is due to become operational by 2028. The Commission is also developing a pilot CRCF registry as a proof of concept and plans to create a LULUCF–CRCF Knowledge Hub with tools for greenhouse gas inventories and certification, including soil and forest carbon models.

The CRCF review may include amendments such as a methodology for livestock emissions, for which a pilot certification is ongoing with the Expert Group. Another option under discussion is a CRCF certificate of performance. This would not require an additionality test and would not generate units, but could support reporting and labelling in value chains.

At the same time, the debate is shifting from how to supply carbon credits to who will buy them and why. Demand remains uncertain, and discussions have started on creating demand through an EU CRCF facility, such as an EU Buyers’ Club. The official CRCF Buyers’ Club website has just been launched.

The latest CAFAMORE Policy Brief by Gardiner et al. (2026), “The Do’s and Don’ts of a Buyers’ Club”, recommends defining such a club as a learning and transition mechanism rather than a long-term financing solution. It should support early CRCF implementation, prioritise a strategic portfolio of high-impact activities, and avoid treating all certificates as interchangeable. The brief also stresses the need to clarify buyer claims, use public support to unlock additional private finance, and prevent market structures that weaken farmers’ bargaining power.