EU Establishes Ground Rules for a New Carbon Removal Market

The European Commission has formally adopted the first certification methodologies under the Carbon Removals and Carbon Farming Regulation (CRCF), creating a voluntary EU-wide standard for permanent carbon removals. The initiative is designed to provide regulatory certainty and strengthen confidence in a fast-developing segment of the climate market.

Low-angle shot of a European professional reviewing biochar near a DACCS facility. AI generated picture.

The new methodologies clarify how permanent removals must be quantified, verified and certified across Member States. They focus on three technologies regarded as sufficiently mature and strategically relevant: direct air capture with carbon storage (DACCS), biogenic emissions capture with carbon storage (BioCCS) and biochar carbon removal (BCR).

Crucially, the framework defines what constitutes a tonne of removed CO₂ and sets requirements for durability, risk mitigation, leakage management and liability. By aligning with existing EU environmental legislation, the Commission aims to ensure environmental integrity while limiting administrative burden for project developers and certification bodies.

Commenting on the development, Wopke Hoekstra, European Commissioner for Climate, Net-Zero and Clean Growth, said: ‘The European Union is taking decisive action to lead the global effort in carbon removals. By establishing clear, robust voluntary standards, we are not only fostering responsible and climate action within Europe but also setting a global benchmark for others to follow. This a vital step toward achieving our climate neutrality targets and ensuring a sustainable future.’

With governance provisions now operational, project proponents working with DACCS, BioCCS and biochar pathways can apply for EU certification. The first certified projects are expected within months, marking the transition from policy development to market deployment.

The delegated act will next pass to the European Parliament and the Council for a two-month scrutiny period, which may be extended. If no objections are raised, it is expected to be published in the Official Journal in early April and enter into force 20 days thereafter.

Further methodologies covering carbon farming activities and carbon storage in bio-based construction products are planned for adoption in 2026. In parallel, the Commission intends to launch an EU Buyers’ Club for permanent removals and carbon farming credits under the upcoming EU Bioeconomy Strategy, seeking to stimulate both public and private investment in certified carbon removal solutions.