This report, by Ecologic Institute and Öko-Institut, explores how emerging EU policy instruments – such as the proposed Agricultural Emissions Trading System (AgETS), Mandatory Climate Standards (MCS), and public procurement programmes – can integrate carbon farming while maintaining high environmental standards. The study highlights both the opportunities and the pitfalls of linking these policies to the Carbon Removals and Carbon Farming Regulation (CRCF) and its system of temporary certified carbon units – and investigates alternative approaches to promote carbon farming.

This project supports Carbon Market Watch to address the specific challenges of integrating temporary sequestration credits into EU agri-food climate policy. In assessing the policy options currently under discussion – emissions trading systems, mandatory climate standards, and public procurement – and examines the implications of CRCF use within these frameworks. The project also provides recommendations on how temporary carbon sequestration can be supported in a way that is environmentally credible, practically feasible, and aligned with broader EU climate objectives.