The EU’s Carbon Removals and Carbon Farming (CRCF) Regulation has established a framework for the certification of carbon farming. Yet credible certificates alone will not create demand. In an article published in Ökologisches Wirtschaften, Aaron Scheid of Ecologic Institute explains why binding climate targets for the agricultural sector are also needed.

Complementing rather than replacing

Carbon farming aims to finance the temporary storage of carbon in natural ecosystems, such as agricultural land, or reductions in soil emissions through voluntary certificate trading. Measures eligible for certification can include increasing soil carbon stocks, rewetting peatlands and establishing agroforestry systems.

However, the question of who will buy these certificates remains unresolved. Without binding requirements to reduce agricultural greenhouse gas emissions, there are currently few strong incentives to do so. The EU Buyers’ Club planned by the European Commission could help aggregate initial demand and provide practical experience with the new system. In Scheid’s assessment, however, it cannot replace binding climate policy. Carbon farming certificates should therefore complement the incentives created by standards and carbon pricing rather than substitute for them.